Posted on 06/01/2018 6:05:22 AM PDT by reaganaut1
So much for Donald Trump as genius deal-maker. We are supposed to believe his tariff threats are a clever negotiation strategy, but on Thursday he revealed he’s merely an old-fashioned protectionist. His decision to slap tariffs on steel and aluminum imports from Europe, Canada and Mexico will hurt the U.S. economy, his own foreign policy and perhaps Republicans in November.
In March Commerce Secretary Wilbur Ross dangled temporary exemptions to 25% steel and 10% aluminum tariffs to extort trade concessions from U.S. allies. Mr. Ross withdrew the exemptions on Thursday, saying the U.S. “was unable to reach satisfactory arrangements” with Canada, Mexico and the European Union. He means they didn’t unilaterally surrender.
Mr. Ross announced the tariffs under Section 232 of the 1962 Trade Expansion Act ostensibly to circumvent the World Trade Organization. WTO rules let countries adopt tariffs to protect national security, but Canada, Mexico and Europe are hardly a threat.
Canadian steel and aluminum are actually integral to U.S. national defense, as Commerce’s Section 232 reports acknowledge. Mr. Trump complained that Lockheed ’s F-35s cost too much, but now he’s going to make U.S. fighter jets and other weapons more expensive, which could give Russia an advantage in international arms sales. Brilliant. Another irony is that Mr. Trump has denounced China for using national security as a pretext to promote domestic industries like semiconductors. He’s essentially doing the same.
American businesses rely on complex cross-border supply chains that take time and money to change. Most will have to internalize the tariff costs, which will mean raising prices or hiring fewer workers and paying lower wages. The tariffs also create uncertainty as businesses petition Commerce for product exemptions while delaying investment. Note to Mr. Trump: Regulatory uncertainty was a big reason growth was so slow during the Obama years.
(Excerpt) Read more at wsj.com ...
I never knew, and still do not know if I agree with Trump on trade. I love him everywhere else. I gladly accept the whole package
Art of the Deal, short term pain for long term gain.
Trump just bought a yuge block of union votes, as well.
His decision to slap tariffs on steel and aluminum imports from Europe, Canada and Mexico will hurt the U.S. economy, his own foreign policy and perhaps Republicans in November.
“but on Thursday he revealed he’s merely an old-fashioned protectionist.”
YAY!
WINNING!
Build a Wall of tariffs!
I would not expect a neutral evaluation from the Wall Street Journal, so I will need to see additional commentary before taking a position on Trump’s actions.
“I never knew, and still do not know if I agree with Trump on trade. I love him everywhere else. I gladly accept the whole package”
I guaantee Trump views these things as bargainin chips, not the endpoint. Protectionism would be if they were fixed in stone. We’ll see how it plays out.
And you believe an elite controlled business newspaper?
Before Trump these companies paid more income tax, after the tarrif these companies will still have lower cost over all.
Maybe the Wall Street Journal should send their people overseas and convince those countries about the evils of imposing tariffs on American goods.
If you are a U.S.-based manufacturer and the prices of steel and aluminum rise, your most feasible options are to either use different materials or -- get this -- move your entire operation overseas so your materials aren't subject to the tariff.
“but on Thursday he revealed he’s merely an old-fashioned protectionist.”
Old fashion actually had an economy.
These folks refuse to acknowledge what Trump is against. He opposes China & others using trade agreements with Canada, Mexico, and others as a pass through scam for their products. Fake Canadian products which are actually relabeled Chinese products are getting sent into our country.
Also, he opposes foreign countries charging us, for example, 30% when we charge them only 2.5%.
These foreigners and Wall Street think these disparities are right just because former administrations have put up with it.
That’s crazy
I do have to blame Trump for one thing in this: it’s his fault that I have to see Soyboy Justin all over the television this morning. I can forgive a lot, but this is challenging.
The Wall Street Journal has an agenda. Why should we believe anything they print?
“Canadian steel and aluminum are actually integral to U.S. national defense, as Commerce’s Section 232 reports acknowledge. Mr. Trump complained that Lockheed ’s F-35s cost too much, but now he’s going to make U.S. fighter jets and other weapons more expensive, which could give Russia an advantage in international arms sales. Brilliant. Another irony is that Mr. Trump has denounced China for using national security as a pretext to promote domestic industries like semiconductors. He’s essentially doing the same.”
HAHAHA yes, the F35’s cost overruns and price tag is because of raw material costs.... Rolling eyes.
The fact anyone would make, let alone swallow this argument shows just how piss poor our educational system is in the US.
Some of the cost will be passed on to customers, some of the cost will eat into profits, some of the cost will be made up for with tax cuts.
In the end, if there is more business activity in the US, profits will increase and costs will decline as more capacity comes online.
Foreign producers are free to invest in new plant in the US.
Aluminum is a perfect case in point. It is processed from a form of rock called bauxite, which is hardly found anywhere in the world. Something like 95% of the bauxite in the world is mined in just ten countries, and I believe only one of them (Brazil) is even in the Western Hemisphere.
Aluminum producers in the U.S. must love a tariff on imported aluminum, but you can be damn sure they'd be howling with outrage over a tariff on imported bauxite.
We are over the Enemy Target .
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