Tariff Dispute between the U.S. and China

The U.S. announced its plan to place tariffs on imported tires from China last Friday. In response, China announced they were investigating American auto parts and chicken products. Tariffs in China are nothing new

Countries tend to engage in protectionism, one way or the other. One of the biggest concerns underlying protectionism is the unemployment issue. The Chinese government has criticized the Obama administration's plan as protectionist and a violation of global trade rules, saying that the tariff will eliminate 100 thousand jobs in China.

The whole world is watching how the relationship between the U.S. and China is evolving not only in terms of tire tariffs but also in terms of other matters. For example, the U.S. owes China $1.7 trillion.