Trump surprised everyone by enacting a 25% tariff on imported steel and 10% on imported aluminum from all countries. The intent was ostensibly to create jobs in the all-but-defunct steel and aluminium industries. There are a number of negative consequences that Trump ignored:
~ Roedy (1948-02-04 age:70)
- Prices of steel and aluminum will go up in the USA, and any goods that use them.
- Chinese finished imports that include steel avoid the tariff.
- The USA imports only 3% of its steel from China. The tariff will not have much effect on China.
- All other countries in the world will institute retaliatory tariffs on all manner of goods. This means general job loss.
- The net result is a job loss and higher consumer prices.
- When businessmen and economists did their projections of the consequences, the stock market crashed.
- Trump’s economic advisor Gary Cohn resigned because he felt the tariffs were a bad idea.