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Once again the jobs aren't in the steel and aluminum mills they are in the down stream fabricators. The higher cost steel and aluminum raw materials in the US will make the fabricators less competitive.
It takes two people to make the aluminum and five to fabricate a hand truck.
Even the Aluminum Association, the industry trade organization came out against the tariffs. Same with his bringing coal back....no one wants it.
Last edited by toosie; 06-06-2018 at 03:55 AM..
Reason: Edited for partisan politics
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The problem with factory jobs is automation and outsourcing. Construction is difficult to outsource or automate. Fracking is a new industry. Refineries are likewise not that easy to automate(i.e. every batch of oil is slightly different). Food Processing can be A/C but really the machinery does a lot of the work(i.e. A plant could triple production and not add triple the amount of workers).
Manufacturing like building cars is much easier to automate or to outsource than other industries and simply does not require as many people as it did in ages past.
Chirack, please reconsider your contention that any USA enterprise or industry generates too few or any jobs and is thus unworthy of our consideration.
Although all of a nation's production is captured within the GDP statistic, domestic production support that's not reflected within the prices of globally traded products cannot be recognized and attributed to global trade.
Lesser USA steel production reduces our economies of scale and increases costs of our steel per ton, which further increases the prices and reduces the production of USA steel producers and USA enterprises utilizing steel material and/or steel components.
If USA is levying a tariff on steel, it should levy a tariff upon all steel producers, and their customer's products. What's the point of a steel tariff that increases the price disadvantages of USA enterprises purchasing steel?
There are also unapparent but actual relationships of individual enterprises and/or entire industries not generally recognized as related to goods-producing industries, but significantly benefiting due to commercial activity generated from such enterprises.
Manufacturing enterprises of all sizes and extent of their degrees of automation, use engineers, plumbers, janitors, repairs, maintenance, and updating of their production lines and tools, pencils and pens. They are indirectly serviced and generate additional revenues for such enterprises as mass transportation, pizza and coffee shops, or local taverns.
I agree with those contending that there should not be commercial enterprises considered as “too large to be permitted to fail”, and there's generally few (if any) enterprises or industries that should, as a matter of policy be beneath our consideration.
Many on here don't understand that these tariffs are not just about saving one industries jobs, Its about forcing other countries to open there protectionist markets to American goods.
These countries are enjoying free access to American markets while protecting there own markets from American business.
So far the response has been just the opposite. Mexico and the EU just imposed their own tariffs on US goods. I don't think Trump's tariffs are scaring them into submission.
tariffs don't work ? but why does Canada have these tariffs?
270% dairy
69.9% Sausage
57.8% Barely Seed
49% Durum Wheat
26.5% Bovine/Meat
18% Table Linen
Why did Canada create "ingredient strategy" tariff in 2015?
To protect those important industries and curb US imports.
The day before tariffs, worldwide demand for steel was X tons, and output was Y tons.
The day after the tariffs, worldwide demand for steel is X tons, and output is Y tons.
tariffs don't work ? but why does Canada have these tariffs?
270% dairy
69.9% Sausage
57.8% Barely Seed
49% Durum Wheat
26.5% Bovine/Meat
18% Table Linen
Why did Canada create "ingredient strategy" tariff in 2015?
To protect those important industries and curb US imports.
All countries have tariffs but badly implemented tariffs such as those on steel can do more harm than good.
The day before tariffs, worldwide demand for steel was X tons, and output was Y tons.
The day after the tariffs, worldwide demand for steel is X tons, and output is Y tons.
The problem is downsteam…. If steal costs more then the cost of the products that contain it will increase which will then reduce demand for them. Also it takes a bit of time for the effects to kick in(more than a day).
The problem is downsteam…. If steal costs more then the cost of the products that contain it will increase which will then reduce demand for them. Also it takes a bit of time for the effects to kick in(more than a day).
Yeah, I get your point.
Tariffs that are selective by country tend to just rearrange the deck chairs. Instead of importing steel from China you import steel from Turkey, and instead of exporting steel out of China to the USA, they export steel out of China to Turkey's former customers. Shipping costs go up, but that isn't particularly material.
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