The Gerald R. Ford School of Public Policy at the University of MichiganThe Gerald R. Ford School of Public Policy at the University of Michigan

Alan Deardorff speaks with National Public Radio about China's increased tariffs on U.S. vehicles

Friday, December 16, 2011

Reacting to China's announcement that it will increase tariffs on large American-made cars and SUVs, Alan Deardorff told Michigan Radio that the World Trade Organization could make such disputes less frequent in the future.

"These things working their way through the system I think is much better than working outside the system, which is what used to happen before we had the WTO," Deardoff said.

While the higher tariffs are not expected to greatly harm U.S. auto companies, Deardorff said China's manipulation of currency is a problem American politicians are rightly concerned about. He suggested that if the WTO were to regulate currency disputes, tariff quarrels between the countries might diminish.

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