Network Metals LLC

As we first discussed last week with the potential for the imposition of tariffs on imported steel pipes and other steel products (much of which comes from China), the idea of a trade war has now become mainstream news with President Obama’s decision to impose import tariffs on Chinese rubber tires. The Wall Street Journal is calling Obama the first protectionist president since Hoover (and this could prove to be true), but our feeling is that China is really the party driving the change. In the past we have referred to China as the ‘furnace of the world’; now that it is taking significant steps out of that mold (and is in the driver’s seat), the rest of the world has no choice but to adjust. Obama may only regret picking a fight when the next T-bill auction goes “no bid” from China.