To the editor: If President Donald Trump wants to address the overproduction of Chinese steel, he should work with our allies instead of against them.
NAFTA and the WTO have also sped up the movement of manufacturing jobs out of the U.S.to other countries.
"I'm glad to see our neighbors Mexico and Canada exempt", Rep. It has doubled since the beginning of the year, and moved 29% higher since Trump first announced the tariffs. But there are less than half as many steel workers.
Chinese leaders have threatened in the past to retaliate against raised trade barriers, but have yet to take direct action following Trump's announcement.
"We've seen some spikes in steel sourcing a couple of times over the last 12 months", said Tony Uphoff, Thomas President and CEO. In effect, the US remade world trade policy in its own image. Giving rise to the possibility of a potential trade war, Trump's tweet read, "When a country (U.S.) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win." . That's the Commerce Department's usual approach: placing narrowly tailored punitive tariffs on specific products from individual countries, not blanket tariffs and quotas against all product categories from all countries.
The general economic view of trade protection says that tariffs transfer money from a good's consumers to its producers.
"So, the focus needs to be on China, not these other countries". This means that they'll have to charge higher prices. "Investment costs would increase for American companies".
China is, first and foremost, the culprit most guilty of trade manipulation.
Steel tariffs, however, don't follow this pattern.
So while a withdrawal does not seem likely, officials said, the more pressing question is whether the three countries can reach an agreement on a new trade agreement and assure American businesses of some certainty going forward. That puts American manufacturers at a distinct disadvantage as they seek to penetrate European Union markets. He also advocated that the USA form partnerships with Europe, Japan "and other victims of China's mercantilism" to resist China and bring actions against it through the World Trade Organisation.
The Motor & Equipment Manufacturers Association has also expressed concerns, calling on the administration not to impose blanket quotas or tariffs. Example, when we are down $100 billion with a certain country and they get cute, don't trade anymore. A lot of the supporters of the tariffs are pointing their fingers at China, but I heard that the USA doesn't actually import that much steel from China.
So why is Trump doing this? He added that he does not believe in the protectionist measures being taken by the western economies and believes that India can stand still in a trade war. That depends on how effective an interest group is in winning the support of powerful political patrons. I understand and appreciate those intentions as someone who worked in Cleveland steel mills, and has relatives in the Cleveland steel industry and family members in the tool and die industry. Trump has said repeatedly that he wants to protect American manufacturing squeezed by foreign competition, and USA steel certainly fits that profile.
So what's at stake if the USA withdraws from the pact?
For the moment, the domestic steel industry pins hope on the government seeking to contact the Trump administration for negotiations over the tariffs.
In the end, Trump's tariffs might help him win the battle for Ohio, Michigan, Pennsylvania or Wisconsin, but they will lose him the war in terms of trade. "The U.S.is acting swiftly on Intellectual Property theft".
This article incorporates elements of a story published on July 17, 2017.