Or maybe that haven’t been. Maybe they have backfired.
http://www.aei.org/publication/jim-...iffs-are-backfiring-even-for-us-steel-makers/
http://www.aei.org/publication/jim-...iffs-are-backfiring-even-for-us-steel-makers/
Trump’s Tariffs On Steel Have Been A Godsend To The Steel Industry
- Thread starter Ponca Dan
- Start date
This is anecdotal of course but i work in manufacturing and we import steel and iron products as well as manufacture same products domestically. About a month ago we were hit with a 10% tariff on those imported goods. Within 3 days I had price increase letters from my domestic suppliers stating they were going up 10-20%. The result is our costs are going up, which we’re passing on to our customers, but no more jobs are coming back on our account. I’ll be surprised if this is not the case in most industries. Steel and Iron foundries have been getting killed by China for 30 years. It’s almost impossible to hire American workers to work in that kind of environment. I think the tariffs will be used to increase profit margin vs, gain market share, at least in my small world that relates to this.
I doubt a ton more jobs are added but I also don’t think that was the real intention. I believe they were used as threats to get solid trade agreements and it has worked with several countries so far.
I too am in manufacturing. We do a lot of outsourcing, and have seen costs go up on raw metals. There are some loopholes as well which currently avoid seeing these but I will say, we have looked to China less and increased sourcing from other parts of the world, including US.
The economist Mark Perry calls it “Backfire Economics” and regularly posts examples of the negative effects of the Trump team’s bullying tariff policy. Here’s an example of the backfire results of the steel tariffs.
http://www.aei.org/publication/char...-in-the-world-are-crippling-us-manufacturers/
I am in distribution, not manufacturing. I deal primarily with four separate manufacturing companies. In the last week to ten days we have been notified by all four that there will be as much as a 5% increase across the board for all products we buy, including products that have zero steel content.
I found the remarks about the Fed’s concern about inflation most interesting and concerning. Inflation is an increase in the money supply relative to the amount of goods being produced and sold, which lowers the value of money and raises the dollar value of products. The tariffs are forcing the dollar value of products to go up, which the Fed interprets as an increase in the money supply, and therefore decided interest rates should rise, making access to dollars harder for businesses to come by. It’s a sure sign of a coming recession. Disturbing to say the least.
And Trump’s reaction has been to try and bully the Fed to keep interest rates low. I continue to believe that DJT and his economic team are blithering idiots.
Yeh...we have increased coming as well. We pass those along.
Steel isn’t the only thing with tariffs. There are several electronic components as well.
I’m not a fan of tariffs. I believe much of this is blown out of proportion though because Trump says mean things on Twitter. I also believe his end game is not massive tariffs.
Yeh...we are pretty heavy in Taiwan. We also do a fair amount in India, but Europe is a big source as well. We don’t buy steel, we are mostly into exotic stainless varieties so US sourcing hasn’t and will never really be a thing.
I disagree with you that the outcry against the tariffs are being blown out of proportion, although it is understandable why you might think so.
The left in this country has lost its collective mind, and has claimed the sky is falling upon every utterance the President makes. This drives me crazy! Trump does plenty of things that deserve criticism, the tariffs bring a prime example. There are many legitimate reasons - policies - that should be resisted. But with the unceasing bellowing from the left about every little thing, the legitimate reasons get drowned out and ignored. Stormy Daniels makes for a juicier topic, it’s much easier for the media to understand and explain. Plus I doubt the left is that bereft at the imposition of the tariffs. After all it’s just another alibi for growing the power of government. When they regain power they can impose similarly stupid policies and the Republicans will be in no moral position to complain.
The primary calls of concern are coming from the right, which is seeing itself becoming increasingly marginalized.
I say the right, not the establishment. Free market advocates, economists from all sides, people who have studied tariffs and the negative effects they have on the citizens of countries that impose them are speaking with one voice. But the die/hard Trump supporters, the ones who will willingly follow him over the cliff have become so inured to the ceaseless criticism they are tuning out legitimate criticism.
