Populist Politicians Use Poultry to Pontificate and Pander

By Noreen Alladina • Friday, February 5, 2010 11:42 am
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Several critics of President Obama’s “Buy American” provisions warned of the looming trade war between the U.S. and China. Just today, China has made the next move in pushing U.S-China trade relations one step closer toward a full-blown trade war between the two countries. They have imposed anti-dumping duties on U.S. chicken products that reach as high as 105.4%.

 

The U.S. chicken industry relies on selling chicken products to China and will likely take a huge hit from these tariffs. While some jobs may have been “saved” from the tire tariffs or from the anti-dumping duties in the steel industry, jobs lost from tariffs placed on U.S. exports will likely negate the number of “saved” jobs.

 

While it may sound appealing to “save” jobs through limiting competition from imports, the eventual consequences of tariff policies far outweigh any immediate benefits. For example, it adversely affects workers in other industries as the American poultry industry is now witnessing. Furthermore, the total impact of tariffs seems to offer consumers a raw deal. It drives up prices and prohibits variety and competition.

 

Tariffs come with an enormous price tag that must be accounted for.

 

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