Potential trade war could hurt recovery

The Globe and Mail

September 15, 2009

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With less than a fortnight to go before hosting a summit of the Group of 20 nations in Pittsburgh, U.S. President Barack Obama Monday was defending his decision to implement punitive duties on $1.8-billion (U.S.) of lower-end Chinese tires at the behest of the United Steelworkers union.

Unlike some trade complaints, the 35-per cent-levy was Mr. Obama's decision alone, making it an overtly political move rather than an administrative one.

The Chinese government's response was layered with insult, causing trade lawyers and former government officials to fret about the possibility of a trade war.

Beijing called the White House's decision …

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