Posted on 03/06/2018 10:10:04 AM PST by Sean_Anthony
But with counter-tariffs and counter-counter-tariffs and who knows? Where she stops, nobody knows
Michael Fumento image By Michael Fumento —— Bio and Archives--March 6, 2018
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President Donald Trump has announced plans to impose a stiff 25 percent duty on imports of steel and 10 percent on aluminum. This shortly after slapping heavy tariffs on washing machines and solar panels. Even those with protectionist inclinations need to know these metals aren’t the industries to protect. Few mining jobs would be saved, while the cost of finished goods will rise and encourage offshoring. And in terms of trade war, it looks to be the equivalent of Sarajevo in June 1914.
Imports make up about a third of the 100 million tons of steel used by American businesses every year, and more than 90 percent of the 5.5 million tons of aluminum. That’s a lot. But let’s be clear that this isn’t about dumping (a country subsidizing exports or in some way selling them for less abroad than at home), notwithstanding Trump’s claim at a 2016 campaign rally in Pittsburgh that “China is dumping steel all over the United States, okay? It’s killing you.”
How do we know this?
Simple. The tariffs apply to all nations. If dumping is determined, the U.S. can and does take action. Stunningly, the U.S. already had 111 anti-dumping steel duties in effect against 32 nations as of June, 2017, along with what are called “countervailing duties” against five of those countries. Were all those countries really dumping? Or has the U.S. already been impeding foreign steel sometimes under false pretenses?
As for China, by far the world’s largest steel producer and exporter, it sends almost none (directly at least) to the U.S. because they are under 24 sanctions including a massive 522 percent duty on rolled steel implemented two years ago.
Sounds good but it’s all a game. The other countries prop up their industries. We have every right to preserve these critical defense related industries.
We are going to protect American industry and American workers . We are no longer going to protect the investor class buying stocks in foreign manufactured goods destroying this country.
BINGO
Sorry for the double post, though I am not sure how that happened exactly as I only hit post once.
Yep.
Think of it like the Olympics.
You are only suppose to send "amateurs".
But in many other countries the "amateurs" belong to a "sports club" that pays all their living expenses and gives them a stipend. They have as much time and energy for training as they need.
Our amateurs have to actually work jobs to pay for their training and living expenses.
This does not result in a level playing field.
This is what we have been doing for quite some time. You can sell us all the cheap crap you want and put restrictions on what we can sell you. We will call this "free trade" even though we are hamstringing our own interests.
Six countries account for more than 85% of the world's bauxite production. They are Australia, China, Brazil, India, Guinea and Jamaica.
Vietnam is in the early stages of its mining development but may actually have more bauxite reserves than any country other than Australia. The U.S. has very little bauxite mining activity at all, and our reserves are inconsequential.
With these numbers, it's actually shocking that the U.S. has any aluminum production industry at all.
So while, $18 Billion sounds like a small number {compared to mesico @ $86B}, it is a big number in the steel import number.
Sell it here? Make it here.
Employ US Citizens, pay US taxes, follow US environmental laws. Just like we do. That’s fair.
If we need something we can’t make, we will buy what we need from our friends. Maybe encourage them to make it here too???
Wanna be our friend? then play nice in the sandbox.
Some Shiitehole country wants to be a prick about things? We can play that game too.
The truly wonderful thing is that the US could just Go Gault, roll up our borders and tell the rest of the world to Eff Off.
what about all of those recycled aluminum cans? Do they ship them out to other countries?
Everyone won’t suffer: a risk worth taking.
I’ve seen bits of the bauxite mines in Jamaica.
That’s a very good point. The lack of any U.S. domestic raw materials for aluminum is probably what makes aluminum one of the few materials that can actually be recycled economically here in the U.S.
Aluminium smelting is all about the electricity cost as it uses massive amounts. That is why remote Iceland is a large aluminium producer - by living on top of a volcano they get cheap geothermal electricity and that’s enough to ship bauxite there to be smelted. Supposedly Canada has something similar with very cheap hydroelectricity in some areas.
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