Posted on 05/08/2018 6:05:53 AM PDT by reaganaut1
CHICAGO (Reuters) - Encouraged by a booming demand for construction equipment, Mike Haberman was planning in early February to hire at least 30 more workers for the manufacturing facility of his Gradall Industries in Ohio.
That plan now is shelved, Haberman said, because the cost of steel used in Gradall’s telescopic excavators and vacuum trucks shot up by one-third following President Donald Trump’s crackdown on steel imports. As steel costs account for 35 percent of his cost of production, he fears rising prices would not only hurt his export sales, but also give an edge to foreign rivals at home.
“At this point, we really need more visibility before we would bring in more workers,” he told Reuters.
When Trump signed a $1.5 trillion package of tax cuts at the end of 2017, supporters predicted businesses would respond this year with a burst of hiring and investment.
But Reuters interviews with more than a dozen small to mid-sized manufacturing executives and recent U.S. economic data reveal Trump’s protectionist trade policy is starting to lead some of them to take a more cautious approach, and forcing them to put new investment and hiring plans on hold.
While these manufacturers lauded the administration’s push to make U.S. businesses globally competitive through measures such as the tax overhaul and a deregulation drive, they complained that the steel and aluminum tariffs along with the escalating trade spat with China were undercutting those benefits.
Trump has proposed a separate 25 percent import tariff on some 1,300 Chinese products to try to force changes in Beijing’s intellectual property practices. If the tariff comes into effect, they would upend Haberman’s components supplies from China, he said.
(Excerpt) Read more at reuters.com ...
You don’t help American steel and aluminum refiners by favoring their foreign competitors.
My dad used to work for AK Steel back when they were called Armco. AK now is the only U.S. maker of electrical steel, and foreign producers were dumping such, cutting into AK's production. If you think this country can function without domestic steel production if there ever is a major war again, you're as brain dead as the average Democrat.
Steel prices will drop over time as more U.S. capacity comes on-line. Sorry, but your free-trade hogwash no longer sells here.
This is a gut reaction to the problem and we should know not to believe the headlines/agenda of the media.
Everyone got surprised by the immediate increase in steel. It is the unexpected that bothers us.
Yes, folks it is going to cost us more for American Made but that is what we wanted. We complain about the cheap Chinese crap everyday.........................
So what are the choices?
Exactly. On a related note, I'm curious about the citizenship status of these "30 more workers" Mike Haberman was planning in early February to hire?
Amen!. I hope that as more and more US companies get on with building new Plants for Steel and Aluminum, we can say goodbye to China products.
Also allowing China to obtain US intellectual property is an act of treason.
I doubt he was referring to specific people; only that he was planning to add 30 employees.
Tariffs are not a zero sum event. What they give to some, they take from others, and seldom does the difference net to zero.
I'm actually a fan of tariffs, but imposing them on specific products or raw materials does nothing except pit different U.S. industries against each other.
In the long run, this will be worth it.
Hahaha price of steel went up for foreign manufacturers as well.
I know it is impossible, but the steel tariff must be thought of as a laser aimed rifle shot and not a blast of Number 7 1/2 shot gun pellets.
First of all, at present there is no such tariff imposed. When the tariff is actually imposed, it will be first on dumped steel and then on steel from recalcitrant trade pardners.
In the long run, which is how a conservative should look at things, we have to have fair trade. Getting raped is not ‘free trade’ amigo.
You are confusing good theory with crappy reality. Our trading partners have been bending us over for decades and not using KY. I used to work for Uncle Sam and used to write reports back on this very subject - and nothing was ever done. They cheat. And cheat. And cheat. Or in many cases, like China just piss right in our faces and we just stand there and lick it up.
And there is something else at stake here - which are industries critical to national defense. Those cannot be allowed to wither completely away.
Sourcing Reuters, eh? I can only imagine that CNN, Yahoo!, MSNBC and WaPo heartily agree with them.
But you DO help AMERICAN workers in places like Hawesville, Kentucky, or West Lafayette, IN as US companies gear up to meet the new demand.
Trump’s tariffs allow us to invest $100 million and hire hundreds: Century Aluminum CEO.
So your beer is going up 4 cents a case due to not using Chinese aluminum?? How much did the tax on beer go up over the last 20 years?
You don’t help the American economy by allowing foreign nations to dump subsidized products in your nation.
The, sure wages are stagnated but you can buy a toaster for $5 argument is done... its a sham.
The systematic extraction of US Wealth to foreign players, while taking a cut for yourself, by traitorous fiscal and economic policies is done.
Trump’s tariffs allow us to invest $100 million and hire hundreds: Century Aluminum CEO
Exactly. The tariff’s aren’t even in effect yet. There might be a slowdown or some rising prices which, I believe, the President acknowledged, but give the industry a chance to catch up. Instead of hiring the 30 that you were “planning on” hiring, don’t. Take your time and catch your breath.
But Reuters interviews with more than a dozen small to mid-sized manufacturing executives and recent U.S. economic data reveal Trump’s protectionist trade policy is starting to lead some of them to take a more cautious approach, and forcing them to put new investment and hiring plans on hold.
I’d like to ask the exec’s in these companies a couple of things....
1. Would you even be talking about expansion and new investment if it were not for the President? Nope.
2. Would you rather slow down your expansion/new investment, so you don’t over extend yourself and default down the road or just hit the skinny pedal, not caring about 5-10-15-20 years down the road?
I’m no business owner or exec, but the President was, a pretty successful one at that. Our Commerce Secretary isn’t too shabby either. So, I don’t have a problem deferring to their outlook on these topics. Just sayin’....
The entire point is the US was the world’s largest steel producer, and; we won World War I and especially II because we could build tanks, aircraft, ships, etc. If we have a war with China we cannot build ships, planes, tanks, etc. WE MUST MAKE OUR OWN STEEL.
BOOOOOOMMMMMM!!!!!!!
Nice one...
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