Early in the administration of George W. Bush, the former president applied provisions of US trade law to levy new tariffs on imports of steel. The move, ultimately struck down as illegal by the World Trade Organisation, was a calculated and somewhat cynical effort to convince organised labour to be less opposing of the president's market-opening trade agenda. However, labour groups, notably steelworkers, were not appeased by the move, and fought each new trade deal with abandon.
During his presidential campaign, Barack Obama talked tough on trade, notably with China, and promised to stand up for American workers against other countries' unfair trade practices. Meanwhile, his campaign quietly reassured other countries of the candidate's appreciation for open markets and liberalised trade. “He's a free trader,” said his economic advisors in hushed tones. “Don't worry.”
So what are we to make of the president's decision to impose new tariffs on tyres imported from China?