I am not surprised that Reason published the opinion of one voice without examining the numbers, as long as the voice is perpetuating their propaganda its “BS be damned!”.
American steel was not 25 percent higher than imported steel, with Mexico and Canada exempt the competition and price point of steel will not move; the recent tax cuts and deregulation will mean America will have a greater share of the Market but claims of finished products rising 30 percent are just red meat for the economically illiterate.
The article admits that the nation’s who are effected by this make up a small portion of the steel that we consume, then they use this as ridiculous springboard to claim massive job losses in manufacturing domestically?
I challenge the assumption that the “author screwed up”, I think his agenda was to misrepresent what this action was for and what it was designed to do.
Much like the lumber tariff that Trump championed this is a strategic trade move, not an economic policy; Trump once again chose an industry that would have little to no impact domestically to send a loud message to our trade partners about what he is willing to do to countries who use government subsidies to pollute the Market.
I expect one of these every year, as I expect domestic operating costs to fall every year as regulations and lower taxes do their thing.
This tariff will be disruptive to nations that redirect profit from Markets that they control to lower the expenses of Markets that they can’t dominate via market forces alone, this doesn’t help us in the larger picture but it does needlessly limit domestic production of raw resources.
When those raw resources are energy, lumber or any of the industrial metals that should concern everyone, depending on foreign countries for resources that are plentiful at home and vital to national defense is foolish.
The price of lumber has not moved since last years tariff and the price of steel won’t move now, but our trade partners will be walking on pins & needles when it comes to the temptation to engage in “creative market manipulation”.
Screwing us in one Market that we cannot compete in and using the profit to kill us in another Market that we can compete in does not equal a “win” for us.
If any country can beat us head to head in any Market then we should respond with “great job, you win and we will buy from you”; but pretending that we cannot compete in Markets like steel, lumber and oil straight up does nothing but cost us growth and security.
Pretending that we do not lessen our security by devastating our domestic resource industries is nothing short of a head in the sand Ideology.
We are starting to do our part with deregulation and cutting taxes, demanding more integrity in trade “or else” is an entirely appropriate thing to be happening simultaneously.
Trump is not ignoring the way some trade partners connect their industries to cripple competitors that they cannot beat head to head, these trade partners being very nervous is the only “effect” that these selective tariffs will have.
Which is good, people tread lightly around a loose canon who fully understands the big picture; Trump creates and uses leverage like few politicians ever have.