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I agree with Leo Gerard. This is at least a step in the right direction with our trade laws.

SCHULTZ: Welcome back to THE ED SHOW. Tomorrow, President Obama will head to Pittsburgh to speak to union leaders at the annual AFL-CIO conference. Labor is fired up. I was there last night, had a radio town hall meeting. They‘re expecting a lot from President Obama.

The union‘s got a big victory from the Obama White House over the weekend, when the president agreed to impose temporary tariffs on tires imported from China. Union leaders say cheap Chinese tires have cost American jobs and shut down plants, and putting an import tax on them will level the playing field for American workers.

Joining me now is Leo Gerard, president of the United Steelworkers International. Mr. Gerard, good to have you with us tonight. How bold a move was this by President Obama to go ahead and uphold the U.S. International Trade Commission‘s ruling on this? This is something the Bush administration did not do. How bold is this in your opinion?

LEO GERARD, UNITED STEELWORKERS INTERNATIONAL PRESIDENT: I think it was a very important step, very important move. In fact, this is the first time a president has brought meaning for sanctions against a foreign—a foreign country since Ronald Reagan. Ronald Reagan did it twice. So I‘m pleased that President Obama stepped in.

We believe that this is a rule-base country. We went to the International Trade Commission and said, China‘s breaking the rules. They agreed. Now President Obama‘s agreed. I‘m very pleased.

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I'll take this as a win, although once again Obama simply splits the difference on something that requires bold action. And this isn't just a matter of propping up an "ailing" American tire industry - Chinese tires are quite heavily subsidized, and China has been flooding the market with below-cost tires in an attempt to drive American tire companies out of business.

Still, positive news for American workers!

In one of his first major decisions on trade policy, President Obama opted Friday to impose a tariff on tires from China, a move that fulfills his campaign promise to "crack down" on imports that unfairly undermine American workers but risks angering the nation's second-largest trading partner.

The decision is intended to bolster the ailing U.S. tire industry, in which more than 5,000 jobs have been lost over the past five years as the volume of Chinese tires in the market has tripled.

It comes at a sensitive time, however. Leaders from the world's largest economies are preparing to gather in Pittsburgh in less than two weeks to discuss more cooperation amid tensions over trade.

The tire tariff will amount to 35 percent the first year, 30 percent the second and 25 percent the third.

Although a federal trade panel had recommended higher levies -- of 55, 45 and 35 percent, respectively -- the decision is considered a victory for the United Steelworkers union, which filed the trade complaint.

"The president sent the message that we expect others to live by the rules, just as we do," Leo W. Gerard, president of the union, said Friday night.

China's government and its tire manufacturers, as well as tire importers and some U.S. tire makers with plants overseas, had strenuously objected to the measure.

"The President decided to remedy the clear disruption to the U.S. tire industry based on the facts and the law in this case," the White House said in a statement released Friday night.