I believe this is his most controversial move yet and I honestly do not have a prediction of an outcome. It is economically dangerous. With his Steel and Aluminum tariffs he is disregarding "the rules" of which the USA was the primary architect. In terms of Trade, the USA is too important to ignore, however if this escalates it could bring on a recession.
Great discussion group...thanks!
Oh just read this article now....a few hours after I posted this: http://nationalpost.com/opinion/john-ivison-the-great-patriotic-trade-war-against-the-u-s-begins-on-canada-day The problem with these Tariffs is that it is going to cost us more for some goods. :( As the USA will now be paying 25% more for steel. You cannot produce enough internally.
Another article I read... http://nationalpost.com/news/politics/the-good-the-bad-and-the-ugly-heres-what-could-happen-if-trumps-trade-war-escalates
Another article on the Trade Off. More jobs but less overall wealth. Example of Washing Machine prices. The tarrif protected industry gets more jobs. However, overall incomes are lost to paying more for the Tariffed products.
Information from another article... "Shortly after tariffs were announced, steel suppliers, no longer as fearful of price competition, began jacking up prices — they’re no fools. That has meant a 40 percent increase since January in the cost of steel for their customers who use it in their finished products, according to the U.S. Chamber of Commerce. They can either pass that increase on to you or be less profitable.
The story is the same with aluminum: Brewers are forecasting that they’ll pay $347.7 million more for aluminum cans. That has small craft-beer makers such as Melvin Brewing in Alpine, Wyo., which packages 75 percent of its products in cans, fretting about impending prices rises and the risks of passing them along to consumers. Try not to be bitter about it.
Job losses from the metal tariffs alone could top 400,000, according to an analysis by Trade Partnership Worldwide, a nonpartisan consultancy that supports free trade. So while U.S. Steel can celebrate the restart of two blast furnaces in Granite City, Ill., and bring back about 800 workers, 7,500 jobs will be lost elsewhere, the consultancy estimates." https://www.nytimes.com/2018/06/15/opinion/sunday/trump-china-tariffs-trade-farmers.html
I think it is safe to say right now...Option2 - Destabilize is occurring.
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the other side said the same thing about Kim Jung Un and look what is happening. if we don't get tough on other countries, they will take advantage of us. i think he is right
@akindheart If he is just posturing and maybe it only results in no or a minor recession (ie 2008) and he is able to offset the loss of cheaper foreign goods with more good paying jobs (ie however some jobs given to foreigners - like the chinese paid low wages to recycle plastics - http://business.financialpost.com/commodities/recycling-heads-to-the-dump-as-china-gets-picky-about-waste-1).
@okaybut he told the numbers on how unfair our trade is. other countries have been taking advantageof us for years. didn't he say 200% in dairy from canada alone?
@akindheart Hi...I will repast a comment I made on the same idea. And definitely Canada tariffs on dairy are insane! It hurts the Americans, but actually hurts Canadians as a whole much more! According to USA figures, the USA imports less from Canada then it exports - "U.S. goods and services trade with Canada totaled an estimated $673.9 billion in 2017. Exports were $341.2 billion; imports were $332.8 billion. The U.S. goods and services trade surplus with Canada was $8.4 billion in 2017." https://ustr.gov/countries-regions/americas/canada USA has some high tariffs on some products -http://www.businessinsider.com/americas-biggest-tariffs-2010-9#asparagus-and-sweet-corn-213-tariff-3 And so does Canada. Like the USA, only in a very few specialized areas. For us it is milk/dairy etc. These Canadian tariffs do need to come down!!! Canadians are paying way too much when the USA can give them to us cheaper. I hope Trump wins on this.
@akindheart They not only take advantage of our trade. They get a free ride when it comes to US health care innovation which is huge. These so called socialist utopias do not promote private health care innovation. So the US leads the way and other countries take advantage of all the years of the many US private company's testing and innovation which goes into providing better health care. These socialistas who claim to be part of the free world also mooch on the US by living under the umbrella of security known as the US military. These other countries spend virtually nothing on their military because they know the US military will protect them. The free ride and demolition of the US middle class is over, they need to readjust to reality, not us.
