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How Trump’s Policy Decisions Undermine the Industries He Pledged to Help

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Trump As Joker
Trump As Joker (source unknown)

As part of a continuing series about Trump supporters who have gotten screwed by Trump’s erratic trade policy pronouncements, the NYT reports:

In late March, the Trump administration began imposing a 25 percent tariff on steel and a 10 percent tariff on aluminum from countries including Russia, China, Turkey and Brazil. On June 1, it expanded the levies to include Canada, Mexico and the European Union.

While the steel industry supports the tariffs, the aluminum industry is mostly opposed. The tariffs raise prices for aluminum, which helps smelters, the companies that make raw aluminum here. However, only a handful of smelters still operate in the United States.

The Aluminum Association, which represents the bulk of the American industry, says that 97 percent of American jobs in aluminum are at what are called “downstream” businesses that shape the metal into things like auto parts or other goods. Those companies are hurt by Mr. Trump’s tariffs, because they must now pay higher prices for their raw materials.

(click here to continue reading How Trump’s Policy Decisions Undermine the Industries He Pledged to Help – The New York Times.)

It turns out electing a president who gets all his policy ideas from Fox News maybe isn’t such a good thing for the nation. Who woulda guessed?

Storing Wheat  Agfa Scala 200
Storing Wheat / Soy – Agfa Scala 200

And yet, despite all the evidence of Trump’s incompetence, and indifference, some Trumpsters remain on the Trump train:

“I would like to tell the president, ‘Man, you are messing up our market,’” said Kevin Scott, a soybean farmer in South Dakota and the secretary of the American Soybean Association. The idea of changing Nafta, he said, “gives us a lot of heartburn in farm country.”

 At the same time, Mr. Scott said, China’s threat to impose tariffs this weekon United States soybeans — in direct response to Mr. Trump’s tariffs on other Chinese-made products — is already having a negative effect on the prices farmers see. In recent days, Canada imposed its own retaliatory tariffs against the United States. And on Friday, General Motors warned that Mr. Trump’s threat of tariffs on imported cars could backfire, killing American jobs and leading to “a smaller G.M.”

Mr. Scott voted for Mr. Trump, and he approves of administration efforts to roll back environmental regulations, “But if we lose those Chinese and Mexican markets, it will be hard to get them back,” he said. China and Mexico are the two biggest markets for American soybean exports.

Richard Newell, president of Resources for the Future, a nonpartisan research organization in Washington, described the administration’s overall approach as “whac-a-mole policy” that suggests a lack of appreciation of the complexity of global commerce. “The law of unintended consequences abounds,” Mr. Newell added.

Written by Seth Anderson

July 5th, 2018 at 6:58 am

Posted in Business,politics

Tagged with ,

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