Steel Users Prepare for Higher Prices After Bush Tariff- "We Feel Let Down"

Grand Rapids Press ^ | 3/8/02

[Toddsterpatriot]

Much the same way OPEC jerks us around on oil.

Yes, that's part of the scenario.

So, the fact that there are dozens of countries that would love to sell us steel if Japan cut us off doesn't change your mind about the impact this would have on the country?

[Willie Green]

So, the fact that there are dozens of countries that would love to sell us steel if Japan cut us off doesn't change your mind about the impact this would have on the country?

OPEC has 11 member nations and does not control the total supply of oil that we import.

It takes far less than being "cut" off to have severe economic impact on our nation.

[Toddsterpatriot]

It takes far less than being "cut" off to have severe economic impact on our nation.

Agreed. Now, what would that impact be?

[#3Fan]

Steel Users Prepare for Higher Prices After Bush Tariff- "We Feel Let Down"

Imagine how let down they would feel if we wouldn't do anything to save our steel producing capacity and 5 years down the road, Chinese tanks go rumbling through Michigan because our fair weather foreign friends suddenly decided to quit selling us steel.

[Toddsterpatriot]

Imagine how let down they would feel if we wouldn't do anything to save our steel producing capacity and 5 years down the road, Chinese tanks go rumbling through Michigan because our fair weather foreign friends suddenly decided to quit selling us steel.

Yeah and you know how hard it would be for us to start producing steel again.

[#3Fan]

Yeah and you know how hard it would be for us to start producing steel again.

It takes lines of supply and expertise to go into a manufacturing project. If it's so easy to just jump into an industry, why didn't the Taliban suddenly start producing a tank for every tallywacker when they knew we were on our way? A nation of restaurant owners and park administrators (that's what the liberals want America to be, a 3 million square mile park), etc. just aren't going to be able to jump back into the steel industry years after it was abandoned.

[Toddsterpatriot]

It takes lines of supply and expertise to go into a manufacturing project

Yes. And customers. Our fair weather friends won't stop selling steel to us. Their governments waste too much money subsidising their steel industry to turn away customers with cash.

[Willie Green]

Agreed. Now, what would that impact be?

Devastating. Steel is used thoughout our economy, whether for manufacturing or construction.

Yeah and you know how hard it would be for us to start producing steel again.

Very difficult. Steel production requires a complex infrastructure of expertise and supply lines for raw materials, equipment, etc. etc. It is also a very capital intensive industry that would require enormous investment to resurrect if allowed to collapse.

[#3Fan]

Yes. And customers. Our fair weather friends won't stop selling steel to us.

The liberal "chattering classes" most certainly will talk their countries out of saving America if we can't save ourselves.

[#3Fan]

#3Fan: "It takes lines of supply and expertise to go into a manufacturing project."

Willie Green: "Steel production requires a complex infrastructure of expertise and supply lines for raw materials, equipment, etc. etc. "

Woe is the day my posts begin to look exactly like yours. LOL

[Willie Green]

I'm becoming a good influence on you!!!

[Toddsterpatriot]

Devastating. Steel is used thoughout our economy, whether for manufacturing or construction

Devastating how? Be more specific.

[Jeremy_Bentham]

Today, right now, almost 90% of steel consumed in the USA is made domestically.

This is exactly why the EU, Japan, et al are so po'd and rightfully so. They have been accused of harming the US Steel industry by dumping their products in the US, but steel exports from these nations has decreased, not increased.

Also, it appears that Bush will harm American poultry farmers with his decision to protect the Steel industry, since Russia, presumably, has imposed tariffs on American poultry; Russia accounts for about 50% of American poultry exports.

[Willie Green]

Same as an oil shortage.
Prices skyrocket, commerce nosedives.
Ripples throughout our economy, nobody's immune.

[Toddsterpatriot]

Prices skyrocket, commerce nosedives. Ripples throughout our economy, nobody's immune.

OK. So if they raise our prices it's bad?

[Willie Green]

Go jerk somebody else off, you silly little #$%@$%@.

[Toddsterpatriot]

Prices skyrocket, commerce nosedives. Ripples throughout our economy, nobody's immune.

You were so close Willie. If they raise our prices it's bad. We agree. If we raise our prices it's good?

You lost me again.

[Whilom]

Sounds plausible but it doesn't address one area of my concerns. If we permit other nations to subsidize their steel industries and take a rising share of our market to the extent that our domestic production declines, even ceases, don't we put ourselves into a situation analagous to our dependence on foreign petroleum? If our suppliers cut off the supplies, then what? Contrarily, it seems to be more prudent to reduce our dependence on the foreign supply of vital strategic goods -- steel among them. Perhaps the same argument wouldn't work for widgets, since we can become dependent on foreign-manufactured widgets without inviting an economic, geo-political squeeze from the supplier or suppliers.

[Toddsterpatriot]

If we permit other nations to subsidize their steel industries and take a rising share of our market to the extent that our domestic production declines, even ceases, don't we put ourselves into a situation analagous to our dependence on foreign petroleum? If our suppliers cut off the supplies, then what?

I guess that could happen. I'll bet you big money it won't.

If other nations are subsidizing their steel industry they are basically taking money from their taxpayers and giving it to our steel consumers.

I say bring it on, sell us your stuff cheap. I don't see why we should follow their stupid example.

There is an enormous world glut in steel. There will always be someone to sell to us.

I wouldn't feel comfortable if 100% of our steel industry went bye-bye but if the old inefficient producers went away there would still be plenty of work for the smaller, more efficient mills.

We still produce the high end, value added steel products here. The stuff getting the tariffs is, if I understand correctly, mostly low-end cheap stuff.

[jwalsh07]

The answer is yes we do. There is too much execss capacity in foreign markets but since they are not "free" markets the excess capacity does not go by the wayside, it gets supported by socialist governments.

The endgame would be OSEC and we would have to deal with another group of schmucks who price fix. Reagan understood it and so does Bush. An ounce of prevention is worth a pound of cure and anybody who claims this is calamitous should be able to flash back to the 80's and show you and I the global depression emanating from targeted tariffs.

And whats more, tariffs are constitutional.