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Trump's Tariffs

6 years ago

President Trump recently imposed a 25% import tariff on steel and a 10% import tariff on aluminum.

Do you think this is a good idea? Will it help the American economy? How could this impact the world economy in general?

Personally, I think it's a good idea, but I can be persuaded otherwise. With this new tariff, we can get other countries to do things we want (like renegotiation on NAFTA) by offering them exemption from the tariff. It's about time we did something about our trade deficit, if you ask me. This seems to be a good way to strengthen our domestic industries and economy overall in the long run.

Trump's Tariffs

6 years ago

I'm more interested in this bollocks: https://arstechnica.com/gaming/2018/03/trump-to-meet-with-game-industry-over-gun-violence-next-week/

 

The guy's a tool, and I'm surprised he hasn't become the fifth US president to be assassinated, partly because of his knee-jerk, reactionary, off target gun control policies/statements.

Seriously, how isn't that guy dead yet?

Trump's Tariffs

6 years ago

Tariffs aren't a great basis for negotiation. If America raises tariffs, then the other countries won't give them things in order to get them to stop and get around the tariff, they'll just also put tariffs on America. That's not going to help the trade deficit, that's just going to lead to a trade. America uses more steel than it produces, so other countries raising tariffs will mean that America will suffer even worse due to the trade deficit.

Trump's Tariffs

6 years ago

True, one of the biggest concerns about the tariffs is the possibility that they could start a trade war, but it’s ridiculous that our biggest trading partners like the EU and China get to impose numerous tariffs on us while we have to take it and pretend that we’re still engaging in “free trade.” One of the reasons we use more steel than we produce is because most of our steel mills have been shut down, replaced by cheaper foreign steel. Revitalizing our domestic industries will be good for us in the long term, in my opinion.

Trump's Tariffs

6 years ago

OK, shoot, what's your examples of these numerous more tariffs on American goods? Or evidence for them, such as statistics or something, that'd be helpful.

Trump's Tariffs

6 years ago

https://www.google.com/amp/s/mobile.nytimes.com/2017/03/20/business/economy/china-us-trade-tariffs.amp.html

China, for one, has a massive tariff on automobile imports, nearly doubling the price of American cars. This cuts off foreign automobile companies from the biggest car market in the world.

https://www.export.gov/article?id=China-Import-Tariffs 

China generally places tariffs on most imports anyways. China is protectionist when it comes to trade - the tariffs make already expensive foreign goods literally unaffordable for average Chinese citizens.

http://madb.europa.eu/madb/euTariffs.htm

As for the EU, here’s a list of European tariffs.

Trump's Tariffs

6 years ago

Yeah, I'd admit China obviously has a shit ton of tarriffs on foreign goods, they're an isolationist shit stack. But that's not tariffs on American goods, they're tariffs on foreign goods. Trump's not pulling a reactionary tariff on China here, he's pulling a tariff on all foreign goods, so the idea that it's America doing the same to China as China's doing to them is ridiculous. 

You don't really have anything on the EU, though, you just seem to have given me a directionary that I could use to search product codes, such as, and this is one of them: "Raw hides and skins (other than furskins) and leather: Raw hides and skins of bovine (including buffalo) or equine animals (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment-dressed or further prepared), whether or not dehaired or split: Whole hides and skins, unsplit, of a weight per skin not exceeding 8 kg when simply dried, 10 kg when dry-salted, or 16 kg when fresh, wet-salted or otherwise preserved: fresh."

So, not really examples, more a massive opportunity to waste time. Anyhow, never mind, you're unhelpful and useless. In regards to the overall point, the EU doesn't impose massive tariffs on America and not expect it to react. That doesn't happen. The tariffs are a new move by Trump in regard to his protectionist policies, not a reactionary one. So it's in no way helpful to the US' ability to negotiate over deals. 

In regards to this strengthening the economy as a whole, I highly doubt it will. A Trade War will actually mean that they'll actually be a huge decrease in demand for American goods as a whole as as countries raise tariffs, demand is decreased a lot faster than the American demand for the foreign goods tariffs are placed on would rise, as America's losing out on the international community as a marketplace. The businesses being damaged are the more successful businesses than should be staying open, while the ones being helped are the worse businesses that should be going out.

Economist David Ricardo worked on this, with the law of comparative advantage. Basically, it means that with free trade, due to economies of scale arising countries should move towards the production of the goods they have an advantage in as long as free trade exists, because that's how the international community as a whole benefits as well as the individual countries. The reason the aluminuim and steel production are low in America is because America's rapidly moving towards a tertiary economy, because of rising education rates and the fact that it's far better to be a tertiary economy than a primary one. The idea that America should attempt to protect these industries is laughable, because it doesn't benefit the country, or indeed the world as a whole. Instead, America should clearly be looking at expanding the areas where its economy excels rather than protecting dying industries that were only created when foreign trade wasn't able to fill in these niches.

Trump's Tariffs

6 years ago
I can agree with the steel, since the vast majority of our mining and foundries were shut down due to inferior products being dumped into the U.S. markets at such a cheap rate that our own industries could no longer compete, but I'm worried about what imposing a tariff on aluminum might do since so many manufacturing jobs are dependent on it and we produce very little of our own. I can see it creating a crisis worse than that of the '20s & '30s when aircraft and auto industries are forced to lay off hundreds of thousands of employees. Not to mention everything else, since it's hard to find something that doesn't use aluminum in one form or another.