Defending the National Interest, or Giving in to Union Pressure?
Case number:
A03-13-0017
Abstract
The U.S. government responded to a surge of tire imports from China using Section 421 of the 1974 Trade Act. This allowed the U.S. government to impose a large increase in tariffs on imports of tires from China over a three-year period. Explanations for President Obama’s decision to do this ranged from domestic political explanations—specifically, that he was caving into pressure from the USWA union—to arguments that he was defending the larger national interests.
Teaching
This case can be used in a course on Global Political Economy, Global Business Environment, Foreign Trade, or U.S. Foreign Economic Policy to illustrate—“safeguard”—provisions of U.S. trade policy, specifically in the context of U.S. membership in the WTO.
Case number:
A03-13-0017
Subject:
Business
Government
International Policy
Year:
Setting:
China
Length:
2 pages
Source:
Library