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Steel Tariffs; Do they help us or hurt us?

It is clear that the current administration stands squarely on the side of the American worker, and looks to the private sector to provide the jobs.  To make that happen, the government must provide an atmosphere that gives business the confidence to invest in themselves because they feel it will be profitable to do so. From research and development of new products, to higher efficiency production techniques, it is all driven by the profit motive which is the inherent driver of free market capitalism.  There are a lot of areas that the government has the ability to impact in creating the necessary positive atmosphere for American business to flourish, international trade is one.

Currently there is a lot of discussion about the steel industry.  Many say that American steel companies (and thus American steel workers) are hurt by foreign countries “dumping” steel in America. Dumping refers to artificially low prices usually due to foreign governments subsidizing their steel producers for product sold to other countries.  The effect is a corrupted market and unfair competition for non-subsidized producers.

Most would find history shows that tariffs create trade wars and in the long run lower economic activity for all parties – which would hurt workers in all countries.  Will a steel tariff help all Americans, or just the steel workers?  Below are some links to articles related to proposed tariffs on foreign steel.

https://www.wsj.com/articles/trumps-steel-tariff-threat-faces-resistance-from-lawmakers-1498210202

https://www.wsj.com/articles/we-must-punish-steel-dumpers-with-tariffs-1497543575

https://www.wsj.com/articles/trade-war-risks-from-national-security-tariffs-1497800037

 

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