Health care vs. Free trade?

Here's a trade-off that will not be good for us. From Economist.com:

ALTHOUGH Barack Obama alarmed free traders last year with protectionist-sounding pronouncements on the campaign trail, such as one about the need to renegotiate NAFTA, optimists among them dismissed this as mere posturing designed to placate restive trade unions. Yet a decision by the White House to impose punitive tariffs (35% for the first year, falling by five percentage points a year, to 25% in the third year) on Chinese-made pneumatic tyres now raises serious doubts about Mr Obama’s commitment to free trade...

Simon Evenett, a trade economist at the University of St Gallen in Switzerland, argues that Mr Obama’s decision is a clear affirmation of the power of American labour unions in shaping its trade policy. It appears that Mr Obama is desperate to shore-up support from unions and the left of the Democratic Party for health-care reform—his most pressing domestic concern—and is prepared to risk repercussions on trade.

If so, heightened economic tensions between America and China are a heavy price to pay. Mr Prasad says that “an escalating trade war between these two large economies has the potential to disrupt the world trading system”. The China-America spat also comes soon before the leaders of the G20, the group of big rich and emerging economies, meet in Pittsburgh on September 24th. Global co-operation has been crucial amid efforts to encourage economic recovery. It would be a tragedy if it that were derailed by posturing over tyres and chicken.