TRADE WAR GETTING REALLY HOT!!!!
FIRST TIRES, AND NOW STEEL?????
Sept. 9 (Bloomberg) -- The U.S. Commerce Department decided to impose duties of as much as 31 percent on steel pipe from China, agreeing with American producers led by U.S. Steel Corp. that the imports were supported by unfair subsidies.
The average duties on $2.8 billion in annual imports of the pipe, used in oil and gas wells, will be 21.3 percent, the Commerce Department said in an e-mailed statement today announcing the preliminary decision.
The tariffs may help U.S. Steel and other domestic producers weather a drop in demand for the pipe following the collapse in oil prices last year. It also may be a precursor for a number of trade complaints against China. President Barack Obama must decide a separate case on imported Chinese tires by Sept. 17.
“These are the dynamic duo of trade complaints,” said Joanne Thornton, a senior vice president at Concept Capital, an investors research group focused on Washington policy. “They take on a symbolic significance at a time when countries are concerned about trade restraints” amid the global recession, she said in an interview today.
The pipe case, the largest so-called countervailing duty complaint filed against Chinese-made products, was brought by the United Steelworkers union; U.S. Steel, the largest U.S.- based steelmaker; U.S. operations of Evraz Group SA, Russia’s second-largest steelmaker; and Pennsylvania-based Wheatland Tube Co.
What if China started demanding Chinese currency for bilateral trade?........ooops, that would be a mess as most of the stuff we export to China is basically trash in the form of scrap paper, metal and plastic.
As the money dries up expect the stress to get higher....especially when governments run out of money and government cuts off support for small business.
Lending to small businesses could freeze this December, when the Small Business Administration expects to run out of economic stimulus funds that enabled it to raise its guarantee on its main loan program to 90 percent from 75 percent.
In 9.09...one default leads to another as the Zombulation policies shut down America....and the shut down really starts to kick in 9.09.
Imagine that...we bail out insolvent bankers and give them billions in bonuses and they raise interest rates and cut off credit to small business.....and yet so few see the injustice.