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Can Obama really keep his word on trade?

Yet more American companies are filing anti-dumping claims against Chinese producers, according to this Wall Street Journal article.  Obama talked the talk last week at the G20 meeting in Pittsburgh -- as he did in April 2009 -- but his recent decision to cave in to domestic pressure in the Chinese tyre tariff debacle paves the way for more deliberate policy moves to disrupt the flow of trade from China.  Will he have the spine to prevent more American companies from getting their way, even if it means vandalising the American economy.

The Obama Administration rode in to office with support from unions and other antitrade elements on the political left, and the President has sent signals that he's open to protectionism. In nine months in office, Mr. Obama has sparked a trade war with Mexico over trucking; stalled free trade agreements with South Korea, Colombia and Panama; and imposed discretionary tariffs on Chinese tires.

This might be good union politics for the Administration, but it's bad economics for Americans. If imposed, the duties will foist higher prices on U.S. businesses just as America tries to dig out of a recession. And higher paper prices aren't the only threat Americans are facing: This paper case is the fourth filed in a single, 10-day span this month. The others concern steel pipes and certain industrial chemicals.

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