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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Brewing Tire War With China Pushes Down Markets at Opening

An escalating trade dispute between the U.S. and China helped pushed Wall Street down this morning in early trading.

In the first 15 minutes of trading, the Dow, the broader S&P 500 and the tech-heavy Nasdaq were all down about one-third of a percentage point.

The problem is tires. Last Friday, the U.S. imposed penalties on cheap tires coming in from China, saying they hurt American manufacturers. China carped, saying the move is protectionist.

In other news, President Obama is set to address Wall Street at 12:10 p.m. today on this, the one-year anniversary of the collapse of Lehman Bros.

-- Frank Ahrens
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By Frank Ahrens  |  September 14, 2009; 10:08 AM ET
Categories:  The Ticker  | Tags: Dow Jones, nasdaq, s&p 500  
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Next: Obama to Address Wall Street One Year After Lehman Collapse

Comments

"In 1930, the Republican controlled House of Rep, in an effort to alleviate the effects of the... Anyone? Anyone?... the Great Depression, passed the...Anyone? Anyone? The tariff bill? The Hawley-Smoot Tariff Act which, anyone? anyone? Raised or lowered?... Raised tariffs, in an effort to collect more revenue for the federal gov't. Did it work? Anyone? Anyone know the effects? It did not work, and the US sank deeper into the Great Depression." Ben Stein in Ferris Bueller's Day Off

Posted by: win_harrington | September 14, 2009 10:52 AM | Report abuse

To be a patriot, it's not enough to support no win wars in the Middle East that are draining our finances.

True patriots will stand up to countries like commie China, which has a plan to bankrupt America through unfair trade practices.

After all, how can you be a patriot when you kowtow to commie China to the detriment of your own country?

Republicans, you need a backbone when it comes to commie China. Get one quick. Our country needs you. Stop being a wuss.

Posted by: santafe2 | September 14, 2009 11:45 AM | Report abuse

China will win at the WTO in its charge of protectionism by the U.S. Yet, what is more protectionist? China artificially devaluing its currency or U.S. tariffs? In the world of the WTO, the U.S. is protectionist dead to rights. But, by playing the loop hole of currency manipulation, China is no less protectionist. Its time to get out of the WTO or change it.

Posted by: NEWSOUTH1 | September 14, 2009 11:56 AM | Report abuse

Federal Law is no good unless the overseers over see!!! The SEC and other government entities including our Congress were not watching, or turned the blind eye!!!
New Law will not change this government game playing!! Chris Dodd, Barney Frank, and others have already proved they can't be trusted - Nor the SEC!!!!!

Clean house is the solution!!!

Posted by: jjcrocket2 | September 14, 2009 1:13 PM | Report abuse

Protectionist?!? because someone FINALLY said something about china?
Have you been to a shopping mall lately?
Here's a quest for you - go to a store - ANY store. Search for things that are made anywhere other than the people's republic of china. Good Luck. If the US manufactures anything any more, it's pretty darned difficult to find. If anything is made in Europe...you probably won't find it here. Now even produce is coming from china - the most polluted place on the planet. Medicines like heparin - "produced" in a laundry tub in a filthy barn. Now they want to produce the swine flu vaccine with s promise that the one vaccine handles all. All substandard materials, loaded with lead and chemicals.
They undercut their own costs to flood the market and eventually destroying the US. The US companies that send their manufacturing to china should be penalized.
MORE tariffs not less! Someone gave away the store - it's now Obama's job to get it back for us and our children. We are at a point where we can barely help ourselves thanks to big business, the help of the last administration and Greed.

Posted by: fontanar | September 14, 2009 1:41 PM | Report abuse

If the WTO sides with China, we need to leave the WTO. Globalization has cost this country 40 million jobs and it led, directly, to the current *depression*. A mere 5.4% of our exports are of manufactured goods (compared to 80% for Germany and 95% for China). This country runs on, survives on, domestic consumer spending. Without decent paying domestic jobs, that isn't going to happen, and only a delusional fool even imagines that exports of raw materials or even cheaply made manufactured goods is going to remedy this. We need protectionism, tough new laws that punish outsourcing, tax the snot out of goods and services made offshore, an end to "guest worker" visas like the H1-B where we take in India and CHinese unemployed surplus and lay of our own workers (purportedly for foreign policy gains, which proves the intellectual and moral bankruptcy of our business and political leaders). Free trade is nothing short of treason. End it and end the careers of everyone touting it.

Posted by: mibrooks27 | September 14, 2009 2:15 PM | Report abuse

Has anyone considered how fragile our economy must be if enforcing rules on the importation of just one item 'tires' causes the market to go down?

Tell me exactly when we lost our country, again?

Posted by: Gracefulboomer | September 14, 2009 2:44 PM | Report abuse

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