Posted on 06/04/2018 5:33:34 AM PDT by reaganaut1
New tariffs intended to bolster the American steel and aluminum industries are starting to have the opposite effect in a key part of the U.S. supply chain.
U.S. steel producers are benefiting from tariffs that make it more expensive for companies to buy the metals overseas. But some U.S. firms that use the metals to make everything from refrigeration parts to wheels say the tariffs have led to higher materials prices that are forcing them to charge more for their products. These firms say that in some cases, customers are turning to foreign suppliers that use cheaper, tariff-free metals to make the same products they can then export to the U.S. without bumping up against the new trade barriers.
The fallout, while so far limited, illustrates how efforts to protect some U.S. companies can cause unintended pain for others.
“This is a nightmare for steel consumers,” said H.O. Woltz III, chief executive of Insteel Industries Inc., a North Carolina maker of concrete reinforcements. Mr. Woltz said some of Insteel’s customers have indicated they will boost imports.
The Trump administration imposed broad tariffs on imported steel and aluminum earlier this year, sparking fears among metal-consuming manufacturers that their customers would ditch them for suppliers abroad.
The White House ramped up trade tensions on Thursday when it said the U.S. would move forward with its threat to impose tariffs on European steel and aluminum, which followed a threat earlier in the week to impose tariffs on Chinese imports.
Aneesa Muthana, owner of Pioneer Service Inc. in Addison, Ill., said her company recently lost two orders—worth about $60,000 annually—from a longtime customer.
Pioneer Service doubled the price of some refrigeration and climate-control parts to account for higher steel costs, she said. In response, the customer tapped a Chinese competitor to supply the parts.
(Excerpt) Read more at wsj.com ...
Economics always involves Winners and Losers.
Trump’s approach to Economic Nationalism makes the country a Winner and broad-based economic statistics show that the economy is doing very well indeed. Sure, you can find instances of companies grumbling about something. That doesn’t mean Trump is wrong.
Call a wambulance.
American companies are always going to be the President’s biggest foes in the fight for fair trade.
U.S. ConstitutionAmerica was founded by men who, like Trump, had no use for globalism - but always put America and its sovereignty first. ("Duties" and "Imposts" included.)Article 1 - The Legislative Branch Section 8 - Powers of Congress
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
Well all Canada, the EU and Mexico needs to do is get rid of the tariffs on our goods.
Also if competition in the US will make US steel and aluminum cheaper as long as we can keep the bunions from getting greedy again.
I would like to remind those that fear inflation due to tariffs that during the first 6 years of the Obama administration the greatest fear was DEFLATION. The Fed set their 2% inflation goal as a number, when attained, that would quash the fear of slipping back into deflation and NOT a maximum number beyond which we would be at risk.
FAKE NEWS WSJ
National Companies do NOT pay Tariffs.
I call bullshit.
It adds $100 to the price of a car and $5 to the price of a washing machine.
Builders have a gripe as do railroads. But the overall impact to the price of their finished product is still negligible.
There are other considerations besides pure economics. One of more likely opponents in combat is China. Can you imagine China selling us steel and rare earth metals when we are at war with them?
If "tariff free trade" is so good why does the rest of the world almost universally protectionist in their trade policies?
BINGO
....for a couple of weeks....
Until those countries get the message and lower THEIR TARIFFS!!!
Negotiating from a position of strength!
Something new for America.
OK
These firms say that in some cases, customers are turning to foreign suppliers that use cheaper, tariff-free metals to make the same products they can then export to the U.S. without bumping up against the new trade barriers
Easy. We just close all the loopholes that allow the Chinese or whoever to circumvent the new tariffs by disguising their steel exports.
>> Economics always involves Winners and Losers <<
No, your “zero sum” outlook couldn’t be more mistaken.
In fact, the most important proposition in all of economics, dating back at least to Adam Smith and carrying forward to modern thinkers like Milton Friedman and Tom Sowell, is that BOTH SIDES normally benefit from exchange transactions.
You’re a one trick pony aren’t you. Your trick is fast becoming a worn out record of nonsense.
If you want cheap Canadian steel, go live in Canada.
Now those steel companies are coming back and the businesses are complaining because their profit margins are not going to be as big if they have to buy real, high quality steel "Made in the U.S.A.".
Absolutely right. I expressed myself badly and put forth a zero sum view which I do not actually hold.
But bottomline: tariffs are appropriate, even essential, in my view. Other nations game the system and we need to take steps to counteract their existing policies.
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