I think all of us freepers, or nearly all of us, experienced a great analogy of “tariffs” at the Junior High Level or perhaps even elementary school.
It was on a “playing field”. Heard that term before have you?
Recall that in Track, the guy running the inside lane starts at the starting line. But, the guy running the outside lane gets to start waaaayyyyyyyy out front of the inside lane, for obvious reasons.
This is what “tariffs” when used constructively, by a sincere person (like Trump) can do. They “level” the playing field.
The “key” here is honesty and integrity in applying them. Trump has some of that. Democrats have absolutely ZERO. Just like they abused the IRS, the DOJ, the FBI and so on, they can’t be trusted on tariffs either. On that, the writer has a point.
I generally disagree with using Tariffs on one industry for the sole purpose of boosting jobs at home. There’s a trickle down of those costs that impact many many more jobs at home.
Targeted Tariffs may be needed from time to time but should only be used to “Send a message” to the target that we are serious and are willing to take steps to force them to end their “dumping” policies. This is always dangerous because it invites retaliation on other industries.
From what I understand US Steel producers already supply 70% of the market and China ranks 11th in steel imports into the US. If these Tariffs are targeted to the concern that China is subsidizing their steel producers and dumping “Low cost” products than it seems to me that the overall economic impact of these Tariffs would be negligible.
American consumers don’t buy steel directly from China. American manufactures buy the steel and they make stuff that consumers buy. Higher costs for their materials will have a negative impact on their ability to remain competitive as it would result in higher prices. I don’t know how big this impact will be.
In any event, if an American manufacturer is buying “Low cost” steel from China because there is no American manufacturer that can deliver the product and those prices?
I say, So what.
Good for them.
Who cares?
If the Chinese Government is subsidizing their steel producers and taking a loss in the process.... I say we should buy more from these idiots. They are a pin prick in the overall market.
At the end of the day, The Chinese work for US.