In a stunning display of economic brilliance, the Obama Administration announced today:
WASHINGTON (AP) – The U.S. government is imposing new duties on imports of steel pipes from China…
The U.S. International Trade Commission voted Wednesday to impose duties between 10.36 percent and 15.78 percent on the pipes
Once again, our administration is trying to stifle and regulate trade when no such need is required. If a product or service is introduced into the market at a price the seller is willing to sell, a buyer should be able to enter into contract with that seller if he wants. Right now, the administration is needlessly preventing such an arrangement at the price being offered. This will have the effect of punishing the purchasing party and raising the costs of that parties goods. Further, the demand for that product will be artificially lowered causing an imbalance in the allocation of scare resources which have alternative uses.
On the other hand, we must never forget that the business of politics is inherently, ahh, political. And if we read a little deeper we see:
The move is in response to a complaint filed in April by U.S. Steel and six other steel manufacturers, as well as the United Steelworkers’ union.
Ahh, I see. One of the largest group of Obama supporters would like the United States government to intervene on its behalf in order to make their product more cost competitive in the market place. Interesting. But surely, there must be a group whose interests are HURT by the rising cost of Chinese steel?
The U.S. International Trade Commission voted Wednesday to impose duties between 10.36 percent and 15.78 percent on the pipes, which are mostly used in the oil and gas industries.
Masterful stroke. With one stone, Obama gets two birds; assistance for his Union thugs and a penalty to the dirty nasty oil and gas industries.