Trump’s New Tariffs on Steel, Aluminum Won’t Help American Manufacturing
Near the top of an official “fact sheet” distributed by the White House on Tuesday morning, the Trump administration makes clear its rationale for imposing new tariffs on steel and aluminum imports.
The White House claims that “foreign nations have been flooding the United States market with cheap steel and aluminum” and promises that taxes on those imports will restore “fairness” to the markets for steel and aluminum.
That’s about as straightforward as it could be: The Trump administration believes cheap imports are a problem and is seeking to artificially raise prices with tariffs.
Is that fair? Steelmakers and aluminum manufacturers might think so, but the potential costs will spread through dozens of downstream industries and could impact the price of goods ranging from beer cans and cars to kitchen gadgets and construction vehicles. Nucor, one of America’s largest steelmaking companies, said it would raise prices just hours after the tariffs were announced.
“This is political rent-seeking at its most brazen, and it benefits the few at the expense of the many,” is how The Wall Street Journal‘s editorial board summarized President Donald Trump’s latest trade maneuver.
Indeed, tariffs on goods like steel and aluminum expose the nasty tradeoffs that protectionism creates.
The Trump administration tries to frame these
Article from Reason.com
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.
