General Question

imrainmaker's avatar

What will be the overall impact of increased import tarrif of steel import from China?

Asked by imrainmaker (8365points) March 3rd, 2018

As asked.

Observing members: 0 Composing members: 0

14 Answers

gorillapaws's avatar

I honestly don’t know. This shit gets very complicated, very quickly. Sadly, I think Trump understands this even less than I do—I don’t think he realizes how complicated this is (which is worrisome).

Tropical_Willie's avatar

CArs will cost more and inflation will increase.

Trumpo has made sure “Jr” and Jared will have made a lot of money.

Call_Me_Jay's avatar

Trade wars slow the economy. Electrolux has halted a planned expansion of a Tennessee factory.

Reuters – March 2, 2018 - Sweden’s Electrolux (ELUXb.ST), Europe’s largest home appliance maker, said on Friday it would delay a planned $250 million investment in Tennessee, after U.S. President Donald Trump announced tariffs on imported aluminum and steel.

“We are putting it on hold. We believe that tariffs could cause a pretty significant increase in the price of steel on the U.S. market,” Electrolux spokesman Daniel Frykholm said.

LostInParadise's avatar

Other countries might retaliate, sparking a trade war. A free market results in each country producing what it is best at producing. A trade war interferes with this, lowering overall production and leaving the world with fewer goods with higher prices.

MrGrimm888's avatar

The increased price to Chinese corporations, will be passed to the American consumer.
I.E. prices for the same quality products, will cost more than they used to.

Trade deficit doesn’t equal “bad deal,” in each case… Trump will ruin the world economy, if he looks at things as a pure business man (as POTUS)....

imrainmaker's avatar

I can see only bad news..No positive impact of this move?

kritiper's avatar

Higher prices for everyone! Can you say “inflation??”

Tropical_Willie's avatar

For a businessman (also POTUS controlling tings) inflation is great; if you leveraged (took out business loans) at a lower rate. Yesterday’s dollars cost less to buy tomorrow’s New Trump towers.

kritiper's avatar

@Tropical_Willie ???If inflation is so great, why is the dollar worth less??? Yesterday’s dollars will be worth less, and more of them will be required to buy tomorrow’s New Trump towers.

Pinguidchance's avatar

Buy steel and aluminium stock now and sell in late April when the tariffs are canned.

Tropical_Willie's avatar

@kritiper Look-up “inflation and leveraged” or lookie here ! ! !

Call_Me_Jay's avatar

If inflation is so great, why is the dollar worth less

That is the definition of inflation.

flutherother's avatar

I was surprised to learn recently how little Chinese steel comes into the US. Canada the EU South Korea Mexico and Japan all send much more steel into the USA than China does.
Raising arbitrary tariffs to restrict trade is government interference in the free market and will tend to make us all poorer in the long term.

kritiper's avatar

@Call_Me_Jay Correct! And what happens when money is worth nothing due to inflation??? We’d be like Zimbabwe printing 1 billion dollar bills and hoping we could buy a loaf of bread with a sack of them before the government just eliminates 6 zeros on the bills! True story!

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