China's reaction [Bloomberg] to 35% tariffs by the U.S. on its tires has it investigating dumping and subsidies provided to U.S. automakers and chicken producers. We fired the first shot by applying a clause on China's entry into the WTO in 2001 that had not been previously invoked. The clause was regarding protecting existing industries.
How can you begin trading with a trading partner and not expect an existing industry to be impacted?
Let us not forget where these types of protectionist policies may lead to. Today is the 40th birthday of OPEC [Wikipedia]. OPEC's founding was triggered by protectionist quotas by Eisenhower on Venezuelan and Persian Gulf crude.
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