Trump Tariffs-Steel Industry story

Justin Trudeau left speaks at a roundtable meeting with members of the aluminum industry in Saguenay Quebec Monday

Justin Trudeau left speaks at a roundtable meeting with members of the aluminum industry in Saguenay Quebec Monday

Trump has long called for fairer trade deals and now argues that the tariffs are necessary to safeguard our struggling steel and aluminum industries against less expensive foreign imports.

The list covers $850 million worth of steel products that Trump says he is supporting with his tariffs, with other large targets including more than $500 million worth of bourbon in different sized containers, nearly $200 million in sea-going motorboats and motor yachts, nearly $200 million in "eye makeup preparations" and more than $140 million in "lip make-up preparations". When a 25 percent tariff is imposed, however, South Korean steel exports are expected to decrease by about 880 million dollars annually, as a one percent rise in steel prices is estimated to reduce Korean steel exports to the 1.42 percent.

White House Deputy Press Secretary Lindsay Walters said Ross will work closely with U.S. Trade Representative Robert Lighthizer on determining country exemptions from the steel tariffs, specifically "whether proposed measures between the United States and another country will address the national security threat posed by that country's export to the United States of steel or aluminum products".

President Trump has spoken often about economic dangers from China.

All indications are that this plan will go into effect, thus hurting a growing USA economy and numerous voters, in Oklahoma and elsewhere, who helped to put Trump in the White House in the first place. If they understood markets, they'd know enough to stay out of the way.

The tariffs will affect a wide range of products, including high-tech gadgets, food, furniture and beverages. Tellingly, numerous major USA military contractors - without any reliable source of aluminum being produced domestically - depend heavily upon imported Canadian aluminum to drive their operations. What will the impacts of these tariffs be, and do they constitute wise policy? Meanwhile, outgoing Republican senator Jeff Flake of Arizona said he would introduce a bill that would block Trump's tariffs. Big Deficit. If not, we Tax Cars etc.

We made a decision to take a closer look at how these industries have fared over time.

Last week, the head of the WTO vilified Trump for putting the world at risk of a "trade war".

For one thing, Vertical notes that the list of countries and products being exempted from the tariffs is "growing". To my Foolish eye, though, that still leaves U.S. Steel stock looking like the most expensive stock in a highly valued metals sector - and the one most vulnerable to a fall.

"We expect the impact on USA growth and inflation to be fairly limited", said Mikael Olai Milhoj, a senior analyst at Danske Bank in Copenhagen.

So far, only Australia, Canada and Mexico are exempted - for now.

Asked to respond to Trump's accusations that the EU is imposing barriers to USA automakers, Malmstrom said that "it's hard to argue on Twitter over these issues, but the European Union is a very open market".

According to the Reuters news agency, the tariffs would target up to $60 billion (€48.4 billion) per year of Chinese imports. President Trump abuses the WTO system by using the national security exception. Pain which does not improve the economy is hard to justify.

In contrast, during the entire time those Section 201 tariffs were in place, and while investors watched their effectiveness continually eroded, U.S. Steel stock's valuation declined, bottoming in Q2 2003 - about 15 months after the tariffs were announced.

In Asia, a large share of Japanese and Chinese steel goes to countries in the region's southeast, where booming construction and light industries are fueling strong demand for steel.

Tariff bashers claim that the USA could rely on these foreign suppliers in war. The construction industry would take the biggest hit.

Many traditionally pro-trade Republican lawmakers in the USA also fiercely oppose the tariffs, saying they might help steel and aluminium makers, but would mean higher prices on many other products.

Canada is the largest supplier of steel and aluminum to the US.

French Economy Minister Bruno Le Maire said there would "only be losers" in a trade war, calling for a "strong, coordinated, and united response from the European Union".

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