President Barack Obama took a stand on Friday night by imposing an import tax on tires imported from China. This has been an issue I have been involved with since 2004 with the “Export Tires not Jobs” campaign. And, I am proud to say that this is a step in the right direction for salvaging what is left of the US Tire Manufacturing Industry.
China may appeal the Tariff to the World Trade Organization according to the Wall Street Journal and according to the New York Times China denounced the new 3 year declining tariffs within hours of its announcement. Appeals and denouncing the tariffs are probably on the horizon as it is in China’s best interest since the USA is likely the largest importer of Chinese exports.
Tariff’s will begin September 26th at 35% for one year with 30% the second year and 25% the third in the form of an Ad Valorem tax in addition to the duties and taxes in place prior to the announcement. The Ad Valorem tax, often called VAT, will only cover tires for cars, light trucks, vans, and sport utility vehicles.
The timing of Obama’s announcement is particularly suspicious as the meeting of the top 20 economic countries, known as the Group of 20, is in 2 weeks. This will come off to many, and me, as a political move to pay back union members for their support and financing his election and will be used as a trading card in the Pittsburgh meeting. The opposition argument will be protectionism, like Daniel Ikenson of the Cato Institute, or international obligations. This bold and perhaps controversial move by the Obama Administration will be put on the chopping block for other political gain in the international politics marketplace. My early prediction is that Obama’s stand for Tire Workers is short lived or best case scenario will be scaled back.
My biased opinion is we have to take care of ourselves first. As a friend of several tire workers I have seen the impact of globalization of tire manufacturing. With plants closing, hours cut, and jobs lost the illegal flood of Chinese made tires has impacted domestic tire workers and most importantly my family and friends. If the tariff does stand it sets a precedent for other Ad Valorem tariffs to come. I hope it will be a Tariff on Steel Products particularly Tubular as it is cleaner than steel pipe made in China.
As President Barack Obama gets ready for his first night in the White House the Honeymoon is ending. Wednesday begins his first full day as President. Obama’s Presidency begins in a time of Economic Turmoil and trying times internationally. It is unlikely that he will get a long honeymoon that has been extended to presidents past.
Pres. Obama inherits a two front war in the Middle East. A weakened economy full of scandal and turmoil that directly effects the falling employment rates. Many people from around the world will be looking to the Leader of The Free World for guidance.
So to spare you the obvious problems that face America lets take a look at days gone by with information from the United Steelworkers Rapid Response. Only history will tell the legacy of Former George W. Bush today’s stats are dim and perhaps indicative of how history will be written.
The Legacy of George W. Bush
|When Bush Took Office||Today|
| Unemployment Rate||4.2%||7.2%|
|National Debt||$5.7 trillion||$10.6 trillion|
|Manufacturing Jobs||17.2 million||13.0 million|
|Americans without Health Care Coverage||40 million||46 million|
|Employers Offering Some Type of Insurance Coverage||69%||63%|
|Annual Premium Cost for Family Coverage||$6,230||$12,680|
|Americans in Poverty||31.6 million||37.3 million|
|U.S. Trade Deficit||$362 billion||$688 billion|
|Cost of College6 Public Private ||$3,766 $17,377||$6,585 $25,143|
- U.S. Dept. of Labor, Bureau of Labor Statistics, Employment, Hours, and Earnings from the Current Employment Statistics Survey, Manufacturing Employment, 2000 & 2008.
- Kaiser Family Foundation, Employer Health Benefits, 2008 Annual Survey.
- Kaiser Family Foundation, Employer Health Benefits Surveys.
- U.S. Census Bureau, most recent available data is for 2007.
- U.S. Census Bureau, data is from a 12-month period of December-November for both timeframes.
- College Board, Trends in College Pricing, data is for tuition and fees only.
Image from Counton2.com
Statistics eblast original source for USW.org
Did you see the 30min TV AD from the Barack Obama Campaign? Though it was commercial free and paid as an advertisement it was more like the Barack Obama Show than a TV Ad.
If you didn’t watch it I recommend you watch it now. It will be the talk of the nation tomorrow and you won’t know what folks are talking about.
What did you think of the AD? Do you belive it was the knock out blow to the McCain Palin bid for the White House
Tomorrow night Barack Obama will go on TV for 30 minutes at 8:00 pm EST and according the Associated Press in the United Kingdom it will delay the world series game.
The UK Associated Press article –
Obama ad to delay baseball final
Barack Obama is to become the first presidential candidate in 16 years to air a 30-minute primetime ‘infomercial’ on US television networks.
The rare and expensive move, thought to have cost his campaign about £1.9 million, will even cause the baseball World Series final to be delayed by 15 minutes so NBC, CBS and Fox can air the spot simultaneously.
Mr Obama will highlight his “closing argument” in the infomercial, which underscores his campaign’s financial dominance over Republican rival John McCain with less than a week left in the race for the White House.
Mr McCain, who trails in national polls, mocked the move on the campaign trail, saying: “No-one will delay the World Series game with an infomercial when I’m president.”
ABC will be the only major US network not to run Mr Obama’s message at 8pm ET (midnight GMT), preventing a so-called “roadblock” on the broadcast networks.
Neither network officials nor Obama campaign aides would discuss the cost of the television time, but estimates by the Associated Press put it at about £1.9m. CNN suggested it could reach the £3.1m mark.
The estimates are less than the US TV networks would otherwise get for the 10 or 11 advert “units” they run during that half-hour, but Mr Obama will be charged the “lowest unit cost”, in compliance with federal law.
The Obama campaign, which rose in the polls due to Mr McCain’s mishandling of the economic crisis, is running the infomercial on the 79th anniversary of Black Tuesday, the start of the Great Depression.
Mr Obama is following in the steps of John F Kennedy, who presented a half-hour commercial that featured parts of his speech in Houston about his religion, and Richard M Nixon, who bought two hours of time on the eve of the 1968 election.
The last candidate to use the format was Ross Perot, in 1992, when he detailed his plan to cut the deficit before an audience of 16.5 million people.