US Considers More Tariffs on China

In a surprising move, Obama's economic counsel is considering placing another tariff on Chinese-made goods. This time it's on tires.

The funny thing is, as most Americans are probably not aware, in China consumers purchase many American products including cars. In Japan one will be hard-pressed to notice a non-Japanese brand on the street and the same goes with Korea. China is open to open trade, and most economists will tell you that free trade is good in that it fosters development in areas where countries have a comparative advantage. This, in the end, will be better for the world economy.

The economic war that is waging between China and the US is just getting started, I suspect. Let's hope it doesn't spiral out of control, leaving both countries destitute.