Trump stuff

advertisement
Surname 1
Name
University
Date
Trumps Aluminum and Steel Tariffs
Trump has it that he is on the forefront in the enhancement of the employment rate of the
United States through the aluminum and steel tariffs, his main intention as from his speech is that
he desires zero blue collar jobs in the United States. steel and aluminum executives have begun
preparing for their fate as they are not interested in the plan of Trumps Tariffs. As per the
argument of President Trump, he believes that the tariffs are positive in the following ways to the
citizens of the United States.
Through the sweeping of tariffs on aluminum and steel which are 25% and 10% on
aluminum and steel, there will be a reduction in the staggering of the U. S’s $568 billion trade
deficit regarding the steep nature of USA and China (Williams, 7-11). He does not want other
nations to take advantage of the United States Superpower Nature and on the same note
disadvantage the initial citizens. That is the fundamental reason as to why he introduces new
policies in favor of the US citizens.
It can be realized that from 2015, the United States has been suffering in terms of
employment but since the decision of Trump took control, the Citizens have been smiling
because job opportunities are being longed for in the nearest future possible. It is as per the views
received from the aluminum and steel workers. Out of the thirteen thousand people who were
actually employed in the year 2013, it is notable that only five thousand of the total are the ones
proceeding with their defined duties at work (Williams, 9-13). The remnant 8000 individuals are
Surname 2
therefore jobless and that is the main reason as to why those working in the sector in question are
embraced with a taking of President Trump.
To the aluminum companies, the positive impact of the argument is that they will have an
opportunity to price heavily their local petroleum products for the betterment of their own being
and the entire nation at large. The social media news clarifies that even one of the greatest
petroleum companies titled Century Aluminum is very ready to provide a variety of jobs to the
American folk and restart their plant that was shut down once the idea is affected by Trump. To
the steel companies, they are also embraced by the announcement in that they will be in a better
position to make boom profits (Bown, 15). The buyers will also buy more local materials which
are said to be another boon for the United States steel companies.
Foreign companies that incorporate aluminum and steel into their airplanes and cars may
cheer up the tariffs of trump. As there will be a rise in the prices of steel and aluminum in the
prices of the US, diverse prices of parts also shoot and in one way or another makes foreign parts
appealing than of the Americans. Instead of importing the products which may be expensive, the
countries may decide to buy the raw materials and design the machines in the United States and
then import them at relatively raw prices. Therefore, it will contribute to receiving tariffs though
they may seem to be cheaper.
The effect of the tariffs in question would be costly to the local manufacturers especially
those who attain abroad auto parts but basically, the impact on the United States is not well
elucidated. Trump's fundamental focus of Trump is on attainment of favorable terms for the local
producers. The existing notion is that the local entrepreneurs of the United States are
disadvantaged at some point.
Surname 3
Consequently, there is a projected mechanism of other countries’ retaliatory tariffs on the
main American export industries. It is not in lucidity on whether the countries will also take
action in response to Trump's argument and decision. It is leaked that the European Union
inclusive of Canada and China will increase the tariff imposed to curb the US exports. Another
projection is regarding the impact of the decision into a larger scale trade war. it is said that it
may lead to the change in export competitiveness on the basis of differences in the strengths of
the exporting cities and states. There has been an identification by the European Union of three
products which are naturally ironic meant to counter Trumps step.
Another mechanism of disadvantaging states is via the higher prices’ ripple effects for the
imports of Steel and aluminum. They are designed as the key inputs of the manufacturing and
construction sector. The US import bureau data has it that there is higher tariffs on steel and
more so aluminum have an implication on materials that back up their industries. In measuring
the economy of the United States, there is a reality that steel and aluminum dominate the largest
import base of the United States. Citing an example of some states in the US, Texas, and
California among others import $2 billion-plus annually in relation to steel and aluminum
(Williams, 10-12). It, therefore, accounts for sixty percent of the nations’ total any disruption that
occurs in these products has a fundamental influence on the being of the nation in question
regarding the manufacturing and more so the oil product production.
More so, the US farmers and agricultural companies are at a risk if the announcement is
made effective. Canada and other European Nations have been seen to be threatening retaliation
if in any case, Trump pressurizes on continuing with the tariffs. They really understand that it
would directly affect the voter base as the farmers have been seriously lobbying the Whitehouse
in keeping NAFTA alongside other trade agreements in place (Bown, 15). The relationship
Surname 4
between the United States and China will be tampered with because they are the major importer
of approximately $25 billion agricultural products from the united states thus the market base
will be interfered.
In conclusion, the tariffs were meant to hurt China but it is not yet clarified if they will
have a tight impact on the same. Facts have it that very little of steel and aluminum in the United
States is directly attained from China. It is said to be only 3% of the steel imports that is received
from China. There will be backfiring of the tariffs with the majority of those who are employed
in the manufacturing sector who are the middle of the road voters losing jobs or even being
victims of high costs. In case the foreign countries tend to retaliate and other industries lose jobs,
automatically it won’t bode well for trump. On a similar arena, if the economy suffers in the
prevalent quarters, the basic culprit to suffer will be the tariffs.
Surname 5
Works Cited
Bown, C. "Trump's Steel and Aluminum Tariffs: How WTO Retaliation Typically
Works." Trade and Investment Policy Watch. The Peterson Institute for International
Economics (PIIE) (2018) pg. 15.
Williams, G. (2018). What Trump's Tariffs Could Mean for Consumers (6-13)
Download
Related flashcards
Create Flashcards