#94 Planet Money: Revenge of the Tariffs

Right now someone out there is writing a new line in the Harmonized Tariff Schedule, a 35 percent tariff on Chinese tires. President Obama announced the new tariff last week, angering the Chinese, who quickly responded with promises to investigate tariffs on the US poultry and automotive industries.

The tariff tussle has sparked fears of a trade war between the US and China. Arvind Subramanian, economist at the Peterson Institute, says the new tariff may add to messy trade relations, but it will have little impact on the marketplace. That's good news for poultry producer Eric Joiner, who says he depends on China for sales of his chicken paws.