President Obama pays off unions, places tariffs on China to keep support for healthcare legislation

USW produced tires, AP Photo - Charlie Neibergall

In a move sure to anger the Chinese government and possibly spark a trade war, President Barack Obama announced late Friday evening that he would place trade tariffs on imported tires manufactured in China. 

Despite the upcoming G20 summit to be held in Pittsburgh on September 24-25, where China will have a large presence, the President took action now in what looks to be a move to retain union support in the heated healthcare reform battle.

In a move that appears to some as preemptive, the United Steelworkers union (USW) filed a lawsuit in advance of the President's move stating that China's dumping of tires into the American market has lead to a loss of over 5,000 jobs.  But most acknowledge that as support of the trade unions is needed to pass the President's healthcare reform legislation and that they also contribute vast amounts of money and support to Democratic politicians, the move is seen as somewhat of a “payoff.”

The President could have accepted, rejected or changed the US International Trade Commission ruling which stated that increased imports of Chinese tires into the US has hurt manufacturers here. A powerful union, United Steelworkers, blames the increase for the loss of thousands of American jobs.  The tariff will be in force for three years at a 35% rate for the first year, 30% for the second, and 25% for the  third year .

The announcement was made very late on Friday evening so that news reporting an speculation about the tariff and its potential ramifications would be deferred, defused and somewhat arrested by Monday morning.