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Title: Trump's Steel Tariffs Will Help, Not Hurt, China
Source:
Reason
URL Source: https://reason.com/blog/2018/03/05/ ... -steel-tariffs-will-help-china
Published: Mar 5, 2018
Author: Eric Boehm
Post Date: 2018-03-06 06:07:44 by Deckard
Keywords: None
Views: 5175
Comments: 61
President Donald Trump apparently believes that "trade wars are good, and easy to win." They are neither. And, in fact, Trump's plan to slap a 25 percent tariff on all steel imports—something the president is considering as a way to help American steel manufacturers by protecting them from international competition—might indirectly boost China's steel industry while punishing some of America's top allies and trading partners, along with the very American workers the president supposedly wants to help. If the tariffs trigger a trade war, something analysts say could happen, then China probably stands to gain further. Trump loves to talk about how China has been "killing" U.S. manufacturing, and to blame China for dumping cheap steel into the American market. In reality, the U.S. imported $976 million worth of steel from China in 2017 (up from $906 million the year before), which means China accounted for barely more than 3 percent of all steel imports. The United States imported far more steel from places like Japan ($1.65 billion), Brazil ($2.44 billion), and South Korea ($2.78 billion) last year. The largest exporter of steel to the United States is Canada, which sent more than 5.6 million metric tons of the stuff worth more than $5.1 billion across the border during 2017. The new tariffs will be applied to all steel imports, which means close allies like Japan, Korea, and Canada will be hurt by the tariffs more than Trump's favored enemy of China. "Hitting China and Canada with the same tariff doesn't penalize China relative to anyone else," says Dan Ikenson, director of the Center for Trade Policy Studies at the Cato Institute, a libertarian think tank. "That doesn't, and shouldn't, sit well with exporters from countries that have done nothing wrong." Think about it like this. Trump's tariff will build a protectionist wall around American steel manufacturers, but it won't entirely stop the flow of foreign steel into the country. Because the wall will be the same height for all imports, the cheaper Chinese steel that Trump likes to vilify will still have an advantage over all other sources. Meanwhile, American businesses that rely on steel imports will have to pay higher prices, which will be passed along to consumers. All steel-made products will be more expensive if the tariffs are imposed—and the same is true for aluminum products if Trump follows through with his threat to impose a 10 percent tariff on them. That's part of the reason why the stock market dropped 420 points immediately after Trump's surprise announcement of the tariff proposal last week. As Matt Welch explained on Friday, Barack Obama's tariffs on Chinese tires cost American consumers an estimated $1.1 billion in return for preserving 1,200 jobs in the domestic tire industry, while George W. Bush's duties on foreign steel destroyed some 200,000 jobs in other sectors, exceeding the total employment of the American steel industry. Michael Froman, former United States trade representative during the Obama administration, tells Vox that there's little doubt China is engaged in some unfair trading when it comes to steel and aluminum. The problem, though, is that Trump's tariff proposal "does very little, if anything, to affect China." "Instead, we're hitting our closest allies and partners with a set of tariffs under the justification of national security," he says. Those same concerns are causing some Republicans in Congress to challenge the president's proposal. On Sunday, Sen. Lindsey Graham (R-S.C.) said "China wins" if tariffs increase prices for American consumers or create conflict between the United States and its major trading partners. "You're punishing the American consumer and our allies. You're making a huge mistake," Graham said on CBS' Face The Nation. "Go after China—not the rest of the world." That's really just the start. China could respond to the Trump tariffs by imposing their own import taxes on American-made products like soy beans, airplanes, or computer technology. If China doesn't respond directly, other countries might. A trade war that draws new protectionist tariffs from the European Union aimed at American exports would harm both trading partners, and indirectly boost China. Already, European Commission President Jean-Claude Junker has promised to "not sit idly while our industry is hit with unfair measures that put thousands of European jobs at risk," and Chrystia Freeland, Canada's foreign minister, has threatened to take "responsive measures to defend its trade interests and workers." If the trade war escalates to the extend that current trade agreements are jeopardized, it could drive a wedge between the United States and it's major allies. In that environment, Ikenson warns, China could get away with more rule violations due to the lack of "a coherent, unified response." In other words, Trump's tariffs and the trade wars they could initiate might indeed be "good and easy to win," but not for the United States. The proposed tariffs are an exercise in ego, not economics.
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Begin Trace Mode for Comment # 41.
#1. To: Deckard (#0)
They are right. You are an anti American dicktard. You should move to Amsterdam where you can do all the drugs you want doper.
Were you for Obama's tariffs, or are tariffs only "good" when Trump says they are?
When you finish that calculation, tell me with absolutely no tires being produced in this country and we become slaves to foreign tire producers for tires, how much do you think with their monopoly, they will raise the prices and charge us for each automobile tire? Say: $1,000, $2,000, $3,000 or how much? Exaggeration? No! We have seen the thousands percentage increases with big pharma in our country doing business that same way with their monopolies. Hey, boy….wake up, it does happen. Now you look at the jobs loss versus dollars saved with the steel and aluminum industry to see how long before no steel or aluminum is produced in this country, how much money is saved and what the effect will be. What happens to this country with foreigners to whom we are totally dependent on for all tires, steel and aluminum get pissed at the U.S. and stop sending those products to America? Embargo” Hmmm? It could happen in your world of thinking you know? And speaking of “world,” so far as your hated New World Order is concerned….will these embargos now give new meaning to that terrible monstrosity and create a “New, New World Order?” Hmmm? And BTW: So let’s go to the Internet … Boy, you better start listening to Stone….he is so much smarter that you are and he is trying to keep you straight. I yield back the remainder of my time to you, Stone, I have caregiver chores to do. This is not my usual work, it was thrown together rapidly since I am in a hurry….hope it made sense. Trump knows what he is doing!
Seems to me that you are on record as supporting the globalist agenda with your hatred of the Constitution. I presented an opinion piece on why Trump's ideas may not be in the best interest of the nation. Apparently any criticism of Der Führer or his policies is not allowed on this site. LF has turned into a regular echo chamber with the Trump cultists in charge.
Well LF will never be an echo chamber for destroying America by deindustrializing us and telling the youth illegal drugs are a virtue. In other words you're a dork who wants to live in a lawless drug state. Globalists are for so called free trade. Patriots are for tariffs like the founders. I get it you are a phoney.
Can't stop lying, can you asshole? BTW - here's another article from a CONSERVATIVE publication, The Washington Examiner. Trump's tariffs are a very bad idea, but at least they will annoy China President Trump is making a mistake with his plan to introduce 25 percent tariffs on steel imports and 10 percent tariffs on aluminum imports. Doing so risks an economically damaging trade war with close allies like Canada, the European Union, and Japan. Moreover, if the president is serious about maintaining his tariffs for "a long time," he'll drive up the cost of car purchases and building projects. He'll also reduce efficiency in high-end economic sectors where the U.S. enjoys a comparative advantage, such as airplane construction. In addition, this choice risks undercutting U.S. alliances the world over. This is especially true in the Indo-Pacific region, where U.S. commitment to free trade sets us apart from China and offers the U.S. growing access to lucrative export markets. In essence, Trump is rewarding hundreds of thousands of workers in the steel and aluminum industries and punishing hundreds of millions of Americans. The policy is both morally and economically illiterate. Here's some info about the Examiner: When Anschutz first started the Examiner in its daily newspaper format, he envisioned creating a competitor to The Washington Post with a conservative editorial line. According to Politico, "When it came to the editorial page, Anschutz's instructions were explicit—he 'wanted nothing but conservative columns and conservative op-ed writers,' said one former employee." The Examiner's writers have included Michael Barone, Tim Cavanaugh, David Freddoso, Tara Palmeri, Rudy Takala, and Byron York. The Examiner endorsed John McCain in the 2008 presidential election. Conservatives are questioning Trump's policies too - not just libertarians. Your knee-jerk and vitriolic, spittle-flecked posts that claim I'm a globalist are outright lies. And your insinuations that I am against the War on Drugs so kids will get hooked is slander at its worst. Be honest for once in your life - can you do that?
STOP using that “copy and paste” SPAM. Use your own MIND to speak your piece.
Piss off- I posted that to show that CONSERVATIVES are questioning Trump's policies.
Adults, well most adults, have learned to speak their own mind. What is your problem….since you have not. “Copy and Paste….that’s what you continually do.
Hey Gatlin how's it going. Stopped posting or reading here because the two "resistance" fighters were dumbing down every thread but I see hillary and Wassermann still haven't found jobs. I guess I'll have to come back and watch as the resistance fighters cry like little girls when Trump is reelected in 2020. (UNLESS OF COURSE HE DECIDES TO REMAIN POTUS FOR LIFE) TRUMP IN 2020!!!!!!!!!!!!!!!!!
#42. To: calcon, Gatlin, A K A Stone (#41)
In 2002, President Bush Imposed 30% Steel Tariffs; This Is What Happened Next What followed immediately after the tariffs were announced was a 30% plunge in the S&P 500, a slump in the dollar and a rally in bonds that slashed 10Y yields in half. After receiving the verdict, both from the market and the WTO, the United States backed down and withdrew the tariffs on December 4, 2003
54 days between posts is to long. Don't let the riff raff keep you from posting. They are easy targets. Especially hondoper.
Welcome back ... I well remember when that happened. Jump back in now with both feet. They are still easy.
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#4. To: A K A Stone (#1)
(Edited)
Barack Obama's tariffs on Chinese tires cost American consumers an estimated $1.1 billion in return for preserving 1,200 jobs in the domestic tire industry, while George W. Bush's duties on foreign steel destroyed some 200,000 jobs in other sectors, exceeding the total employment of the American steel industry.
#7. To: Deckard, A K A Stone (#4)
(Edited)
Barack Obama's tariffs on Chinese tires cost American consumers an estimated $1.1 billion in return for preserving 1,200 jobs in the domestic tire industry …
Let’s see now, Deckard. Your are supporting the contention that if we send 1,200 jobs out of this country each month in the domestic tire industry, then we will save $1.1 billion each month. Hmmm? You always think you are much smarter that I, so do you do the math for everyone. How many jobs do we send overseas before no tires are produces in America in exchange for how money will be saved? … while George W. Bush's duties on foreign steel destroyed some 200,000 jobs in other sectors, exceeding the total employment of the American steel industry.
Don’t believe these assholes with a bigger agenda than you, who use a more warped rational the even you. You notice they use the LARGE number of 200,000 jobs to scare everyone while they never published any resultant dollar losses or savings. In September 2003, the U.S. International Trade Commission (ITC) examined the economic effects of the Bush 2002 Steel Tariffs. The economy-wide analysis was designed to focus on the impacts that arose from the relative price changes resulting from the imposition of the tariffs, and estimated that the impact of the tariffs on the U.S. welfare ranged between a gain of $65.6 million (0.0006% of GDP) to a loss of $110.0 million (0.0011% of GDP). A majority of steel-consuming businesses reported that neither continuing nor ending the tariffs would change employment, international competitiveness, or capital investment.
Am I making any sense at all to you. GLOBALIST? If not, then you surely are brain dead.
#9. To: Gatlin (#7)
Am I making any sense at all to you. GLOBALIST?
#10. To: Deckard (#9)
#11. To: A K A Stone (#10)
(Edited)
telling the youth illegal drugs are a virtue
#16. To: Deckard (#11)
#28. To: Gatlin (#16)
STOP using that “copy and paste” SPAM.
#34. To: Deckard (#28)
Piss off- I posted that to show,,,
“Show and Tell” is for first graders.
#41. To: Gatlin, deckTARD, hondope68 (#34)
Replies to Comment # 41. 
#44. To: calcon (#41)
#46. To: calcon (#41)
Hey Gatlin how's it going.
Seeing your name on the post made me smile. Stopped posting or reading here ...
End Trace Mode for Comment # 41.
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