So are steel/aluminum tariffs wise or Not? Is this a case of ‘broken clock is right twice per day’?
Of course tariffs are right in a global perspective. But the immediate effect of such a large tariff so suddenly is going to be an immediate slowdown in everything that touches steel.
Also, Trump is essentially adding a steel & aluminium tax. In a “global supply of steel” sense, this tariff will 100% raise the price of the average steel price. To the effect that supply chains can’t afford to shut down, and the basic supply and demand of the steel, the govt is going to pull revenue from this.
Fwiw, I’m fine with all of that. Just seems weird coming from Trump
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When the price of budlight lime cans goes up he can kiss his base bye bye
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Even Trump’s base isn’t cretinous enough to drink Bud Light.
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Lol. Bud light is classy where I’m from. I grew up watching my family get trashed on PBR.
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My first beer was a strohs lmao. Old man beer.
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They’re hella stupid as the kids say.
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So we should let other countries restrict American goods, with no quid pro quo whatsoever?
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What value do we gain from increasing the cost of steel imports?
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Eventually negotiating power with nations that place limits on our products and our capital.
Go try and open a wholly owned subsidiary in China. We’ll wait here. Try and sell your goods in China that compete with their products. Good luck.
Meanwhile: the Chinese are buying up real estate and businesses here with no problem. As they dump subsidised steel at a loss just to keep their workers employed.
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So we’re going to raise the COGS for every company that uses steel (foreign and domestic), probably put people out of work, and suffer whatever other collateral trade issues arise from this in hopes that we’ll have some leverage for future negotiations.
I have no idea how that’s relevant to import tariffs.
I think that’s about the jist of it
Edit: also don’t forget increased govt revenues
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Trade policy between nations is 100% relevant to tarrifs. Other countries will play games so long as they are allowed to. China will carry on restricting foreign goods (with tariffs and other policies), investment and manipulating their currency until someone stops them.
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I’m not sure if it’s a matter of “stopping” China as much as leveling the playing field.
Maybe stopping their relative advantage. If that’s what you meant, ignoring my derpiness
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You mean, slave labor and disregard for the environment?
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Maybe reducing their relative advantage***
Touche
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I don’t see how policy on who can and can not buy real estate and businesses is relevant to a discussion on tariffs.
How does a US tariff “stop them”? Who do you think will outlast the negative impact of the US tariff, the oppressive Chinese government or the US politician’s losing left and right because the cost of a Ford Fiesta just went up 10%?
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You don’t understand the connection between the free flow of goods, capital and labor that underpins “free trade”? China (and Europe to an extent) does 1001 things to prevent US/European businesses from winning in China.
In the meantime the US is wide open to foreign goods, investment and labor with very few strings attached. This is unbalanced trade policy.
China needs growth, all day every day to maintain the facade of an improving standard of living for their populace. They promote full employment to keep people from rioting. You don’t need to go full trade war to put pressure on them.
The TPP that just got signed (without the US) has a stated goal of reigning in China’s practices.
No, I understand these things well enough.
You seem to want to have a conversation about trade policy or “free trade” in general. That’s fine, but I’m speaking specifically about tariffs and the impact they will have on our economy as it is now. China isn’t going to suddenly change their domestic trade policy because of these tariffs and vice versa.
That may be the case, but that imbalance isn’t going to be rectified by adding more tariffs to imports. You’re just going to drive the cost of steel up. Maybe companies switch to US steel*, but the cost of their product is likely to go down as the price of their product goes up (as COGS go up). So, best case, employment remains unchanged and goods now cost more.
*Assuming China doesn’t just subsidize their exports even more.
So you think the Chinese will fold before US politicians?
I guess we’ll see how that goes.
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How do you propose incentivising China to play “fair”?