The latest trade dispute between the United States and China — the world’s largest and third-largest economies — is brewing, after U.S. President Barack Obama approved much higher duties on Chinese-made tires on Friday.
Those cheaper imports have grown substantially over the last five years, and now account for about one of every five tires purchased in the U.S. At the same time, production of American-made tires has declined and more than 5,000 jobs have been lost.
On Monday, China hit back, filing a complaint with the World Trade Organization and announcing an investigation into whether U.S. chicken and automotive products are being dumped at unfairly low prices in China.
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Daniel Rosen of the Rhodium Group, an economic research firm, joins Daljit Dhaliwal to discuss the larger implications of the trade dispute with China.