I see a few people have touched lightly on this topic, in some other threads. Admittedly, I know very little about this, and was hoping to get some good conversation and understand the pros and cons a bit better...
- Free trade is generally positive in the short term, but can have long term negative implications.
- Tariffs can be used to correct imbalances created from policies that were good in the short term but led to excess imbalance in the long term.
- The US produces around 70% of our own Steel. The rest comes from Canada, South Korea, Brazil and a few others.
- By taxing these imports, the goal is to help protect the jobs of the 140,000 Americans who work in this industry.
- But, it could have negative consequences, as the automotive, aerospace and construction sectors will face higher prices.
- George W. Bush. imposed a tariff of 30 percent on steel imports in 2002. But the move backfired as thousands of American steelworkers lost their jobs.
- The EU is saying they will retaliate, which could cause a full blown trade war (not sure if that's good or bad?)
- The energy industry, and as an extension lobbyists, seem to be against this?