Steel tariffs

As of June 1st, the current administration has imposed a 25% tax on steel from the European Union, Canada, and Mexico. These tariffs were a result of President Trump’s belief that allies and adversaries take advantage of the United States. To the current administration, attempts to resolve trade conflicts are seen as implausible without hefty tariffs.

These tariffs have led to protests from U.S. allies. For example, the E.U. said that it would impose import taxes on items like bourbon and other politically sensitive items. Mexico also agreed that that it will put tariffs on American farm products.

Luis de la Calle, the former undersecretary of Mexico, stated, “The chances of a NAFTA renegotiation were slim, and now they are slimmer because of [the tariffs].”

In more recent news, mills in Ohio and blast furnaces in Illinois have added jobs. However, chemical manufacturers, brewers, footwear makers, and auto copiers have stated that the tariffs will cost jobs elsewhere for each job saved in the metal production industry. Furthermore, the Trade Partnership, a organization that uses economic analysis to produce information about trade policies, estimates that tariffs will cost five jobs for every job saved in steel and aluminium industries.

“I think the steel tariffs are harmful,” said Dexter Douglass, 12.

The Alliance of Automobile Manufacturers believe that auto prices will increase, as steel is 25% of the total cost for cars.