Donald Trump, The President of the United States, Announces That He Will Be Imposing Tariffs On Imported Aluminium and Steel

President Trump sent the United States' trading partners abuzz when he announced last week he will be imposing a tariff on imported aluminium and steel. The tariffs will be expected to be 25% on steel imports and 10% on aluminium imports.

The stakes are high. The most conservative estimates suggest many hundreds of thousands of jobs will be lost and consequences will only compound when other countries impose their penalties on the U.S.

In the WSJ: https://www.nytimes.com/2018/03/06/us/politics/gar..., the article says that there is a fundamental divide between President Trump and his fellow Republicans as the president seeks to raise barriers to foreign trade. The president argues that many countries have taken advantage of the United States.

Mr. Trump finds himself at odds with his party's leaders in Congress, like Speaker Paul D. Ryan of Wisconsin and Senator Orrin G. Hatch of Utah, the chairman of the powerful Senate Finance Committee, both of whom have long records supporting free trade. Mr. Hatch, who once delighted Mr. Trump by saying that he was on the way to making his "the greatest presidency" in history, has broken sharply with the White House over tariffs.

In a sharply worded letter on Tuesday to Mr. Trump, Mr. Hatch said that the proposed tariffs would be paid by American manufacturers and consumers, not foreign companies, and would undercut "the overwhelming and immediate success" of the tax overhaul. "Put simply, the proposed tariffs on steel and aluminium imports threaten to undermine that success," he wrote.

Who are the winners? If Trump goes through with the suggested tariffs, the winners are the U.S. steel industry and everyone employed in it because the tariffs will lead to less competition and increased prices.

Who are the losers? Along with U.S. trading partners, there are a few immediate losers in the U.S., too. Any industry that buys steel will feel the effects of higher prices. When steel prices go up, most of these industries, like automakers, appliance makers and construction companies, will see job losses as they struggle to absorb the costs. In the past, these industries have had trouble passing the costs along and tend to cope using layoffs rather than price increases.

With so many opposing views within Trump's inner circle, the cliffhanger remains: Will Trump go through with the tariffs. One sign that Trump is serious about the move is Tuesday's resignation of Gary Cohn, the White House chief economic advisor, who was a vocal opponent of the tariffs.

Hey, monkeys are you for or against the tariffs?

Comments (29)

Mar 7, 2018

This is Congress' f*cking fault. No, not this particular Congress, but the principle of the legislature handing over its authority to the executive branch to unilaterally do anything from law making to imposition of tariffs. Congress needs to start taking back its authority. They'll have to override Trump's veto, but there's a decent chance they could get 2/3 majority to take back Congress' right to make and eliminate tariffs.

Mar 7, 2018

A republican congress about to enter mid-terms isn't going to war with a Republican president. This is a pipe dream.

Mar 8, 2018

I think Troll meant that during the Bush/Obama administrations, Congress didn't do shit, forcing the Executive Branch to take control, not that this Repub. Congress is "going to war with Trump." You really can't understand that from what Troll wrote? LOL

Mar 7, 2018

Ryan doesn't have to hope. Congress has the power to stop the president from starting a trade war. The question is whether lawmakers will use that power, or whether they will continue to abdicate legislative responsibilities to the president.

Article I of the US Constitution vests the power to set tariffs in Congress. The president has the power to impose tariffs at his discretion only because Congress has passed laws granting him that power. If Republicans in Congress think Trump has a bunch of dumb, destructive ideas about trade, they should pass new laws that strip him of that power.

Trump is expected to justify his proposed metal tariffs by invoking a 1962 law that authorizes the president to impose tariffs unilaterally if doing so is necessary for "national security." Congress could pass new legislation that would require the president to seek a vote of Congress to certify his (bizarre) claim that our dependence on Canadian steel is a national security threat -- and that would block his tariffs from going into effect absent such a vote.

Of course, Trump would most likely veto a bill to reduce his tariff powers, and there are some Democrats in Congress who agree with Trump about trade. But there are a lot of other Democrats who would relish the opportunity to reduce Trump's power and block one of his signature initiatives.

If Republicans in Congress are serious about free trade, they can most likely get enough Democratic votes to override a Trump veto of free-trade legislation.

So, what is Paul Ryan waiting for? He doesn't want Trump imposing new tariffs, and the Constitution gives Congress the power to stop him from imposing new tariffs.

So why doesn't he do something about it?

Mar 7, 2018
Passionate Investor:

Ryan doesn't have to hope. Congress has the power to stop the president from starting a trade war. The question is whether lawmakers will use that power, or whether they will continue to abdicate legislative responsibilities to the president.

Article I of the US Constitution vests the power to set tariffs in Congress. The president has the power to impose tariffs at his discretion only because Congress has passed laws granting him that power. If Republicans in Congress think Trump has a bunch of dumb, destructive ideas about trade, they should pass new laws that strip him of that power.

Trump is expected to justify his proposed metal tariffs by invoking a 1962 law that authorizes the president to impose tariffs unilaterally if doing so is necessary for "national security." Congress could pass new legislation that would require the president to seek a vote of Congress to certify his (bizarre) claim that our dependence on Canadian steel is a national security threat -- and that would block his tariffs from going into effect absent such a vote.

Of course, Trump would most likely veto a bill to reduce his tariff powers, and there are some Democrats in Congress who agree with Trump about trade. But there are a lot of other Democrats who would relish the opportunity to reduce Trump's power and block one of his signature initiatives.

If Republicans in Congress are serious about free trade, they can most likely get enough Democratic votes to override a Trump veto of free-trade legislation.

So, what is Paul Ryan waiting for? He doesn't want Trump imposing new tariffs, and the Constitution gives Congress the power to stop him from imposing new tariffs.

So why doesn't he do something about it?

The answer is he's terrified of his own voters that obsessively support Trump no matter what. Even if Trump personally went into these towns and shot his voters' first borns they'd blame it all on the librulz still.
But I can't say I feel bad for mainstream Republicans after they spent all that time and effort carefully training these people to blame all problems on da librulz and to vote Republican under all circumstances, never holding Republican politicians to any standard at all. Now the only standard is you better do as Republican voters do and support Trump like you would Jesus returning or else they'll primary your ass with some opponent so far right wing Himmler would blush.

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Mar 7, 2018

Can go a day without the Nazi reference. Dems in California want to actively go against Israel and Trump is Hitler. Lol what a joke.

Mar 7, 2018

If he goes through with this, it will easily be his worst policy decision, one that I 100% oppose. Hopefully, he's just bluffing here.

Best Response
Mar 7, 2018

Bingo! After all of the bitching and moaning from the left about North Korea and Kim Jong Un firing ICBMs at the US, now 6 months later, NK wants to come to the table and negotiate. Don't hear 1 word from MSM about that one.

Same concept with these trade tariffs. China has been dumping excess steel in the US for years, but not a single politician had the stones to stand up to "globalist economics". Now we finally have a man who knows how to negotiate, not bow down and hand over whatever a foreign entity may have been able to swindle us out of over the past nearly 30 years.

There has not been a real fiscal conservative, or real conservative period, in the oval office since President Reagan. That is NOT to say I believe our current president is a conservative, but the man knows how to get things done. Let every one of those career bullshit artist politicians (R, D and I) continue to scramble while the current administration works around the entire quagmire that is better known as our federal government.

Mar 7, 2018
dm100:

Bingo! After all of the bitching and moaning from the left about North Korea and Kim Jong Un firing ICBMs at the US, now 6 months later, NK wants to come to the table and negotiate. Don't hear 1 word from MSM about that one.

Same concept with these trade tariffs. China has been dumping excess steel in the US for years, but not a single politician had the stones to stand up to "globalist economics". Now we finally have a man who knows how to negotiate, not bow down and hand over whatever a foreign entity may have been able to swindle us out of over the past nearly 30 years.

There has not been a real fiscal conservative, or real conservative period, in the oval office since President Reagan. That is NOT to say I believe our current president is a conservative, but the man knows how to get things done. Let every one of those career bullshit artist politicians (R, D and I) continue to scramble while the current administration works around the entire quagmire that is better known as our federal government.

My sense is that's the goal here, but if it were just a bluff, why would Cohn resign? FWIW, I'm not a big fan of Cohn as an economic advisor; it's not a good fit for him.

I do think the U.S. is getting screwed over on a lot of trade deals (including NAFTA), but I generally oppose blanket tariffs, especially on crucial products such as steel and aluminum. A selective tariff on abusive countries is fine.

I'm a fan of the Trump presidency thus far: a refreshing rejection of political correctness, liberal orthodoxy, and the disastrous policies of W Bush and Obama.

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Mar 7, 2018
dm100:

Bingo! After all of the bitching and moaning from the left about North Korea and Kim Jong Un firing ICBMs at the US, now 6 months later, NK wants to come to the table and negotiate. Don't hear 1 word from MSM about that one.

Same concept with these trade tariffs. China has been dumping excess steel in the US for years, but not a single politician had the stones to stand up to "globalist economics". Now we finally have a man who knows how to negotiate, not bow down and hand over whatever a foreign entity may have been able to swindle us out of over the past nearly 30 years.

There has not been a real fiscal conservative, or real conservative period, in the oval office since President Reagan. That is NOT to say I believe our current president is a conservative, but the man knows how to get things done. Let every one of those career bullshit artist politicians (R, D and I) continue to scramble while the current administration works around the entire quagmire that is better known as our federal government.

NK is coming to the table because of diplomatic pressure by way of sanctions and China increasingly showing its objections to the North's programs. You really think Trump's tweets are opening NK to stopping its nuclear programs? lol

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Mar 7, 2018

Ya'll are retarded...ever heard of comparative advantage in economics? You're "stable genius" president is going completely against that principle by imposing these tariffs.

Mar 7, 2018

First, what does: You are "stable genius" even mean? And yes, I've heard of comparative advantage in economics. I studied it, I don't see how that has anything to do with our president THREATENING tariffs, NOT enforcing them.

Perhaps try waiting until you see the results of this approach before having abject contempt?

BTW, our "stable genius" prez had implemented policy, and removed policies, that will continue our economy on an upward trajectory. We have a day or two of the markets getting roiled, and you people shout from the hilltops about what our prez is doing to hamper economic prosperity. That, after 8 years of the worst fiscal president since Hoover.

Mar 7, 2018

100% in support of heavy tarrifs.

if you travel at all, you'll realize things are much too cheap in the US.
it's actually repulsive. i WANT to pay more.

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Mar 8, 2018

Don't we import the majority of our steel and aluminum from Canada? Why not hurt our true enemies like Iran or China rather than fight with some of our closest neighbors and allies?

Also now would be a great time for a new trade agreement with the UK given the market's uncertainty surrounding Brexit. The US and British economies would emerge stronger in the process.

Mar 7, 2018

You may want to check the latest on the tariff issues. President Trump has agreed that Canada and Mexico will be exempted from the tariffs. Being a consummate negotiator, I suspect he is going to leverage not implementing the trade tariffs on these products in order to bring both Canada and Mexico to the table to re-negotiate NAFTA.

The man knows how to play long-ball, and for the first time since the 80's, we have a man who is actually representing/supporting/fighting for Americans and America's prosperity as opposed to trying to appease every other country in the world at America's expense.

I have many issues w/the man is many ways, but I judge executives and politicians based on results. The man is getting serious results since his inauguration, he is actually keeping campaign promises, and he is pretty much doing everything that he said he was going to do. Frankly, I've been more than pleasantly surprised with, what I consider to be, superior leadership at the executive branch level. Now if he could get the judicial and legislative branches in synch, he could make many major contributions before his eventual departure from office.

Mar 9, 2018
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