Posted on 11/16/2018 11:38:01 AM PST by MaxistheBest
Tariffs on steel and aluminum are not slowing down most American manufacturers that use the metals in production, defying forecasts that the higher duties would hit metals-using businesses hard.
There have been many anecdotal reports of strains put on metals using business from the tariffs but the data do not support the idea that these are significant in aggregate. If anything, the tariffs have been accompanied by rising output and rising demand for productive capacity.
Fabricated metals products output rose 0.2 percent in October, the third consecutive monthly gain, according to data released by the Federal Reserve Friday. For the year, output is up 5.3 percent. These are the intermediate stage metals products that later get transformed into durable goods for consumers–in other words the sector most likely to feel the strain from tariffs.
And far from tariffs leaving these metals-transforming plants idle, capacity utilization rose in October to 81.9 percent. This is far above the long-term average of 77.5. Prior to the metals tariffs being imposed in May, utilization was down at 80.4.
(Excerpt) Read more at breitbart.com ...
100%
Your post is internally inconsistent.
No.
I guess this is one way to spin it.
Alternatively you could say that fabricated metal products production lagged overall manufacturing output growth by 30%.
Both are true.
A tax that distorts the market cannot make a product cheaper. That is the whole point of a tariff today it increases the price of both imports bearing the increased costs as the tariff raises foreign prices and exports because of it affect on the terms of trade and exchange rates.
Export prices are moved up by any increased domestic demand due from the tariffs as inflation at some point will raise its head.
Nor can a tariff make a domestic commodity less expensive, it is just the opposite for multiple reasons.
Tariffs are political weapons and have their costs.
What I was saying was tariffs slapped on imports make those imports more expensive than similar product produced domestically even though domestic production could mean increase to consumer cost due to higher labor cost and excessive regulation.
Of course the best answer is zero tariffs as was indicated by Trump.
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