Teeing Up Trump Tariffs (higher taxes on U.S. steel consumers)

Wall Street Journal ^ | April 20, 2017

[reaganaut1]

...

Take steel, a Trump preoccupation. One reason for exceptions is that domestic manufacturers have limited capability to produce steel of certain strengths, thickness and flexibility. Most higher-strength steels used in thin-walled pipelines are made overseas. Retrofitting plants to produce a type of steel for one or two projects could delay construction and increase the cost. More U.S. workers would have to be retrained, which may not be practical in the short-term. So contractors often have no choice but to import foreign substitutes.

The American Petroleum Institute chronicled some of these supply challenges in its response to Mr. Trump’s earlier executive order on domestic sourcing for pipelines. On one pipeline project, only five domestic companies were capable of making a particular grade of steel, but none could produce the required quantity, accommodate the pipe diameters and meet the customer’s delivery schedule. Only one U.S. pipe mill bid on another project, and its bid was double that of two international suppliers. It also couldn’t meet technical and safety requirements.

Thanks to the North America Free Trade Agreement, Canadian and U.S. companies can integrate their supply chains. Many steel makers operate subsidiaries in both countries. American raw exports—e.g., iron ore from the Rust Belt and coal from Appalachia—made up 85% of Canadian steel inputs last year, and some were re-imported. Many U.S. pipe mills use Canadian steel slab and coil made from American scrap metal.

Mr. Trump says Nafta is “a disaster,” but the reality is that cross-border economic integration improves efficiency and reduces costs for federal contractors and taxpayers. It also supports jobs in U.S. manufacturing, coal and steel.

[reaganaut1]

Tariffs are taxes that raise prices for American consumers and businesses. Republicans should not be in the business of raising taxes.

[cba123]

Bunk.

This is the globalist establishment, raising a fake issue.

Bigtime fake.

[Alberta's Child]

Trump was not entirely wrong when he called NAFTA a disaster, but the reality is that cross-border trade between the U.S. and Canada has rarely been a problem for the U.S. The real problem with NAFTA is that you have a corrupt Third World dump among the three trading partners.

[Larry - Moe and Curly]

“More U.S. workers would have to be retrained, which may not be practical in the short-term. “

So, by all means, let’s take the “short-term” view.

[Paulie]

What do you mean by ‘fake news’?

Is the WSJ lying?

[Alberta's Child]

Retraining is a losing proposition for many U.S. employers unless they have contracts that keep their trained employees from taking a job elsewhere.

The best employee is the one who takes the initiative to retrain himself.

[Larry - Moe and Curly]

“More U.S. workers would have to be retrained, which may not be practical in the short-term. “

So, by all means, let’s take the “short-term” view.

[FatherofFive]

Cut government regulations on the steel industry, reduce corporate taxes and you will bring the steel companies back home. Leave taxes and regulations in place, you get higher costs for consumers.

The big government types really don't understand that corporations do not pay taxes - they are passed on to consumers.

[central_va]

A strong industrial base is key the the survival of the USA both politically and economically. More across the board tariffs are what is need.

More tariffs and less income taxes.

[Hugh the Scot]

"domestic manufacturers have limited capability to produce steel of certain strengths, thickness and flexibility"

Because foreign interests have been dumping steel into the US market at below cost for years.

[central_va]

Did Alberta have any children that lived.

[Thibodeaux]

Your ignorance is showing

[central_va]

eave taxes and regulations in place, you get higher costs for consumers.

Consumers are taxpayers and they are footing the bill for an idled blue collar workforce. No sale.

[central_va]

But, in general, the protective system of our day is conservative, while the free trade system is destructive. It breaks up old nationalities and pushes the antagonism of the proletariat and the bourgeoisie to the extreme point. In a word, the free trade system hastens the social revolution. It is in this revolutionary sense alone, gentlemen, that I vote in favor of free trade.

Who said this?

[central_va]

They are living at home because they can’t get a good job. They can’t get a good job because we lowered the import tariffs and let too many jobs and industries go overseas. They aren’t marrying because they can’t afford to take care of themselves much less someone else or raise kids.

And the immigrants we let in are part of the problem. They are taking the jobs that are still here from Americans.

Close the border, and restore the tariffs. Use the tariff revenue to cut taxes. More Americans will be working and keeping more of their income and spending their income into the American economy. Win win win win win win win.

-- DannyTN

You again? America's Empty nests refill, marriages postponed, Census study finds

[central_va]

The No-Wall Street Urinal is a globalist propaganda engine. They love cheap immigrant labor, no tariffs and just plain don’t give a rats ass about Main Street America. They can stuff it.

[PapaBear3625]

Retraining is a losing proposition for many U.S. employers unless they have contracts that keep their trained employees from taking a job elsewhere.

It's pretty common for companies which offer tuition reimbursement to charge employees if they leave within a year or so.

After they are trained, the employees SHOULD get a pay level which reflects their new value.

[LS]

Wrong on this. Steel isn’t a consumer item but a national defense necessity. The article admits we can’t even make some of the stuff now.

Time to bring thise capabilities home, before we find out the hard way how much we need them. Both Washington and Hamilton knew this.

[LS]

Really. It’s like “oh we don’t make that anymore.”

PRECISELY THE POINT!!

[FatherofFive]

Consumers are taxpayers and they are footing the bill for an idled blue collar workforce. No sale.

Consumers pay ALL the taxes. Corporate taxes are in the cost of goods sold. Eliminate regulations, companies become more competitive. Eliminate corporate taxes, prices decline. We need MORE competition to bring those unemployed back to real jobs. We get more competition by being more competitive