Looming Trade War with China

" Hello and welcome to freedom watch a daily dose of raw liberty. Streaming online at foxnews.com. I'm your host judge entered -- here. Defending freedom defending your natural rights and defending your right to have a government. That stays within the confines of the constitution. President Barack Obama makes his debut at the United Nations on Tuesday of this week. He will deliver remarks at the climate change summit. He'll host a working lunch with African heads of state deliver remarks at the Clinton Global Initiative. But most importantly President Obama will meet with Chinese President Hu Jintao. At the top of their agenda is trade but experts suggest a looming trade war between the two powers is imminent. Here to talk about all this is Dan Griswold director of the center for trade policy at the Cato Institute Dan welcome to freedom watch. -- glad to -- thank you so Bob president puts a tariff on automobile tires and the Chinese put -- tariff. I'm chicken. Where is this taking us and did they learn the lesson -- I think it was 1929. When something called Smoot Hawley came by. And Herbert Hoover put a tariff on almost everything."

" You yes we seem to be forgetting the lessons of of the past I don't think we'll go that part on the road but this is taking us definitely. In the wrong direction of the timing of this could be worse the president's going into the G-20 meeting he's. Telling the rest of the world to keep their trade barriers down and resist protectionism so the US can export to the rest of the world it. Here he sets a terrible example. And yes the Chinese are talking about retaliating against US -- poultry exports you know. American farmers sold a billion dollars worth of meat and poultry in the Chinese market last year a ten fold increase from five years ago we. We're gonna be big losers if the Chinese decide to retaliate but that's one of the dangers when you start -- trade barriers for no reason. --"

" What does the president think he is accomplishing. Economically. By imposing tariff on tires opt my guess is he's trying to accomplish something politically. Which is the illusion. That -- putting. Tariffs on any kind of an import that has also made domestically will help the domestic market. But economically. In the long you run for the average consumer. The the -- year cost of this will be to increase the price of tires and thus make them more expensive."

" judge you're exactly right unfortunately this was a purely political decision that was basically appeasing. One labor union in the united steelworkers are represented. Some rubber workers this isn't gonna do a thing for jobs in the United States -- the economic recovery you know. It's just not economical to make these tires in the United States anymore. We don't import them from China they'll come from Indonesia or Brazil or Venezuela. That this is why the tire manufacturers themselves. I didn't support this -- and a judge you're exactly right this consumers are gonna pay the price what is the freedom."

" China stealing jobs."

" Yeah well that this isn't about -- but most of the stuff we import from China. Are things we haven't really made in this country have great amounts for decades you know T shirts and shoes. China is the the end of -- assembly point in a global supply chain if we don't import these things from China. They're gonna come from other countries. And what the imports from trying to do is they allow. Low income Americans to achieve a higher standard of living because the products -- more affordable you know. These tires the tariffs on tires this will affect one out of six tires sold in the US. They're the lower entire structure of the kind of tires that working families low income people -- to put on their cars. This tariff is gonna raise those prices by twenty or 30% it's gonna make it harder. For struggling working class families to to drive safely they're gonna put off. A buying new tires that that's all that the president has accomplished so the the president thinks he will help -- class of people politically. People were members of labor unions that manufacture these things whereas in reality. He -- heard a class of people economically. But lower middle class and the poor who can least afford to have to pay more to put a tire on their cars. Yes but the labor unions are organized politically they help get Obama and office. Who's out there are sort of speak besides a Cato institute and judge Napolitano who's -- there -- speaking for the working class people are gonna get socked. With higher prices they just don't have seem to have a voice in this administration has has has China recently filed an appeal. Of an issue between the United States and China involving. The import or export or -- which it is of entertainment products and media products with three WTO. -- that the United States filed -- case against China. That the Chinese were not sufficiently protecting. And allowing US. Movies and CDs to be sold in China. And the US won that case this is a big reason why it's good that China's part of the WTO we can handle these disputes. Under the rule of law in -- a responsible way the Chinese -- I think they're appealing and I don't think they're gonna win the appeal. The bottom line is. Because of China's. Membership of the WTO. It's going to be easier for US. Movie the music companies to sell their products. In China and being protected. By the copyright laws."