Imagine that the United States slapped an antidumping duty of 30 percent on aircraft parts imported from China that it believed were being dumped in the U.S. market. Imagine that China then slapped a 35 percent countervailing duty on U.S. auto imports, saying a recent federal bailout amounts to an unfair subsidy for U.S. automakers.

1. What political, economic, or cultural motives do you think are behind the U.S. antidumping duty against China’s aircraft parts?

2. What motives do you think are behind China’s countervailing duty against U.S. autos?

3. Should countries experiencing economic difficulties be allowed to erect temporary tariff and nontariff barriers? Explain.