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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: 5191
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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#21. To: Deckard (#17)
We're you so stupid you thought the war on drugs would eliminate immoral drug use? If so that is really dumb.
Well you are in favor of legal heroin.
Never once quoted Graham - your penchant for making shit up continues. I posted a link to a CONSERVATIVE site that legitimately questions the policy proposed by Donald - and yet you continue with your PMS tirades. Wildfires plus Trump's tariff/tax on Canadian lumber are screwing Americans again. Gee our trees caught on fire, so now Americans have to pay the Trump tax for a stick of lumber! If Americans want to wash the soot and ashes off of their clothes, they get stuck TWICE by Trump tariffs when buying a washing machine, once for the steel and aluminum, and then again with another Trump tariff when they buy the washer itself. Trump is an economic ignoramus, which might explain why he went bankrupt so many times. You can have an opinion. We are just exercising our free speech to tell your ideas are weirdo ideas a lot of the time. Not always. But often. You are a globalist because you are worried about so called allies selling us steel but you don't care I'd Americans are out of work and end up going on welfare. As long as you can save a penny on a can of beer. Interesting that a drug proponent would worry about tariffs affects on the beer drug.
Trump's plan to execute drug dealers should do the trick, right? Buy American then.
Piss off- I posted that to show that CONSERVATIVES are questioning Trump's policies. Execute heroin dealers and crack dealers and fetenol dealers. Slap pot heads with a 100 dollar fine.
Neocons. Not real conservatives like Pat Buchanan and Donald Trump.
Trump never went bankrupt. He is in fact a billionaire. Thanks to his taxes you got food stamps, free healthcare and pills to sell illegally.
Hey it has been fun kicking your ass up and down the threads this morning. Thanks for the laughs at your expense. Gotta run.
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.
Now he's probably unemployed thanks to wildfires & Trump's tax/tariff on Canadian lumber and rising home prices. He's most likely one of Donald's illegal alien DACA sanctuary Dream Students, anyways. At least I post a link to my source - unlike you who constantly passes off others' work as his own. Look Parsons - I'm not saying you don't have some good points,. Maybe you do. But you and Stone both berate others for having an opinion that is contrary to your own narrow-minded view - thinking to yourselves that you are the only ones who are ever right. Let me ask you something Parsons - what's it like in that fantasy world of yours where anyone who disagrees with you is an asshole because they don't swoon over every word that comes out of your smug, insufferable and self-aggrandizing word-hole? Are you this much of a snotty little prick in real life as well? But you and Stone both berate others for having an opinion that is contrary to your own Are you this much of a snotty little prick in real life as well?
Originality was never your strong suit. I was quoting you. I just put in the bottom box to separate it. Showing your to be kind of a hypocrite.
Like I said - you are an unoriginal SOB.
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!!!!!!!!!!!!!!!!!
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 You're full in with the establishment assholes. I would have thought you would be on the right side on this issue. Your character is further degraded.
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.
Do you want me to embarrass you with a link to the last time. You know I can and that I will....I am one “kick ass and take no prisoners” guy.
Dissenting opinions are welcome and will be debated. Crazy irrational comments merely to engage in a personal attack will be pounced upon.
A moment of sanity. Which points do you think might be good?
Yes, Americans are getting screwed because Canada was cheating by subsidizing softwood lumber so Canadian companies can sell at lower prices than their American competitors. Trump is stopping that from continue to happen. You ‘da man, Donald. Trump is 2020.
Trump is a economic genius Details About the 6 Donald Trump Corporate Bankruptcies Critics have cited the Trump corporate bankruptcies as examples of his recklessness and inability to manage, but the real-estate developer, casino operator and former reality-television star says his use of federal law to protect his interests illustrates his sharp business acumen. "I have used the laws of this country just like the greatest people that you read about every day in business have used the laws of this country, the chapter laws, to do a great job for my company, my employees, myself and my family,” Trump said in August 2015. Trump has filed Chapter 11 bankruptcy for his companies six times. Three of the casino bankruptcies came during the recession of the early 1990s and the Gulf War, both of which contributed to hard times in Atlantic City, New Jersey's gambling facilities. He also entered a Manhattan hotel and two casino holding companies into bankruptcy. He had lots of companies. Some of his companies went bankrupt. He never did. Do you understand that? It is not complicated. I hope it is not over your head.
So his employees took it in the ass - not him. They obviously lost their jobs. Trump doesn't owe anyone a job.
Yeah - he's a real class act, isn't he? How many people do you employ?
If Trump's tariffs do not negatively impact the economy within 6 months I will make a formal apology to all here.
Yes for sure. He is dominating them. I love it.
Donald Trump has never declared personal bankruptcy. Got it? One of the first issues with public perception of the “Trump bankruptcy” trope is that many people don’t fully understand the nature of the bankruptcy process, or the distinctions between personal and corporate bankruptcies. One more time: He never personally declared bankruptcy. Okay? Six of the business companies out of 515 that bear his name filed for Chapter 11 reorganization. Filing for Chapter 11 allows a corporation—which is legally distinct of its shareholders, owners, board, and C.E.O.—to stay in business while it re-structures and attempts to reduce its debt. But just a third time for good measure: Donald Trump, personally, never declared bankruptcy. We good? Smart! Understand it now?
My position is that your miserable War on Drugs is an abject FAILURE and it's time to try something different.
#22. To: Deckard (#17)
If you want to see the War on Drugs end, you are in favor of heroin vending machines in elementary schools.
#23. To: A K A Stone (#18)
Because you are parroting neocon Lindsey Graham talking points.
“Truth is treason in the empire of lies.” - Ron Paul
Those who most loudly denounce Fake News are typically those most aggressively disseminating it.
#24. To: A K A Stone, deckard, gatlin, tater tard, Keynesian losers (#14)
(Edited)
Worsening Lumber "Supply Crisis" Is Driving Record Home Prices Higher
A pair of cucks discuss tariffs & economics, the Trumpkin loses, epic FAIL! 
#25. To: Deckard (#19)
OK, got it - Dissenting OPINION must not be tolerated in the Trump regime.
#26. To: A K A Stone (#21)
We're you so stupid you thought the war on drugs would eliminate immoral drug use?
“Truth is treason in the empire of lies.” - Ron Paul
Those who most loudly denounce Fake News are typically those most aggressively disseminating it.
#27. To: hondo68 (#24)
If Americans want to wash the soot and ashes off of their clothes, they get stuck TWICE by Trump tariffs when buying a washing machine, once for the steel and aluminum, and then again when they buy the washer itself.
#28. To: Gatlin (#16)
STOP using that “copy and paste” SPAM.
“Truth is treason in the empire of lies.” - Ron Paul
Those who most loudly denounce Fake News are typically those most aggressively disseminating it.
#29. To: Deckard (#26)
Trump's plan to execute drug dealers should do the trick, right?
#30. To: Deckard (#19)
Good grief - you are just as much of a knee-jerk reactionary and liar as Stone.
Rant on. You are a hopelessly lost cause.
#31. To: Deckard (#28)
Piss off- I posted that to show that CONSERVATIVES are questioning Trump's policies.
#32. To: hondo68 (#24)
Trump is an economic ignoramus, which might explain why he went bankrupt so many times.
#33. To: Deckard (#28)
#34. To: Deckard (#28)
Piss off- I posted that to show,,,
“Show and Tell” is for first graders.
#35. To: Gatlin (#34)
(Edited)
#36. To: Gatlin (#34)
“Copy and Paste….that’s what you continually do.
“Truth is treason in the empire of lies.” - Ron Paul
Those who most loudly denounce Fake News are typically those most aggressively disseminating it.
#37. To: Deckard (#36)
Look Parsons - I'm not saying you don't have some good points,. Maybe you do.
#38. To: A K A Stone (#37)
Are you this much of a snotty little prick in real life as well?
“Truth is treason in the empire of lies.” - Ron Paul
Those who most loudly denounce Fake News are typically those most aggressively disseminating it.
#39. To: Deckard (#38)
#40. To: A K A Stone (#39)
“Truth is treason in the empire of lies.” - Ron Paul
Those who most loudly denounce Fake News are typically those most aggressively disseminating it.
#41. To: Gatlin, deckTARD, hondope68 (#34)
#42. To: calcon, Gatlin, A K A Stone (#41)
“Truth is treason in the empire of lies.” - Ron Paul
Those who most loudly denounce Fake News are typically those most aggressively disseminating it.
#43. To: Deckard (#42)
#44. To: calcon (#41)
#45. To: Deckard (#42)
... the United States backed down and withdrew the tariffs on December 4, 2003.
That was the candy-assed, chicken-livered Bush.
#46. To: calcon (#41)
Hey Gatlin how's it going.
Seeing your name on the post made me smile. Stopped posting or reading here ...
#47. To: Deckard (#36)
At least I post a link to my source –
No asshole, I have caught you a number of times not doing that.
#48. To: Deckard (#19)
OK, got it - Dissenting OPINION must not be tolerated in the Trump regime.
You got nothing, dipshit....otherwise you would have changed your modus operands.
#49. To: hondo68 (#24)
Trump is an economic ignoramus ...
Trump is no economic ignoramus. Trump is a economic genius and that’s why he is a billionaire. ... which might explain why he went bankrupt so many times.
You ignorant POS....Trump has never declared bankruptcy.
#50. To: Deckard (#36)
Look Parsons - I'm not saying you don't have some good points,. Maybe you do.
#51. To: hondo68 (#24)
... Trump's tariff/tax on Canadian lumber are screwing Americans again.
You have it wrong....as always.
#52. To: Deckard (#36)
But you and Stone both berate others for having an opinion ...
Pointing out the fallacies in your opinions is not berating....it’s educating you.
#53. To: Gatlin, hondo68 (#49)
Trump has never declared bankruptcy.
“Truth is treason in the empire of lies.” - Ron Paul
Those who most loudly denounce Fake News are typically those most aggressively disseminating it.
#54. To: Deckard (#53)
#55. To: A K A Stone (#54)
(Edited)
Some of his companies went bankrupt. He never did.
“Truth is treason in the empire of lies.” - Ron Paul
Those who most loudly denounce Fake News are typically those most aggressively disseminating it.
#56. To: Deckard (#55)
So his employees took it in the ass - not him.
#57. To: A K A Stone (#56)
Trump doesn't owe anyone a job.
“Truth is treason in the empire of lies.” - Ron Paul
Those who most loudly denounce Fake News are typically those most aggressively disseminating it.
#58. To: Deckard (#57)
#59. To: All (#42)
“Truth is treason in the empire of lies.” - Ron Paul
Those who most loudly denounce Fake News are typically those most aggressively disseminating it.
#60. To: Deckard (#57)
Yeah - he's a real class act, isn't he?
#61. To: Deckard, A K A Stone (#53)
(Edited)
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