Trump's Proposed 25% Tariff On Steel

[Black02GT]

Right now I think it is on raw materials only in the proposal.

So without a value added tax wouldn't this encourage companies to manufacture goods out of the country instead of importing raw materials?

 

[03Sssnake]

This actually benefits NuCor directly up the road from me. They produce some of the highest quality types of steel and actually developed the new type that's about to be used for trucks. Lighter than aluminum but stronger than traditional steel. A friends wife is high up in management at the plant/engineering division.

The company I used to work for bought most of the steel, aluminum stock they used from NuCor.

 

[HISSMAN]

So without a value added tax wouldn't this encourage companies to manufacture goods out of the country instead of importing raw materials?

Not a clue. I am not an economist.

 

[Klaus]

Fair trade, not free trade. This is the candidate we voted into office.

I smell a commie.

If you are a seller of AL and FE it helps, if you are a buyer of AL and FE, it hurts. I suspect you do not run US based steel mills, so it hurts you.

 

[Klaus]

I engineer and sell automation equipment for industrial processes. One of our vertical markets is metals. Our orders and inquires are *of-the-hook*. For decades I've watched too many steel production machines pulled out of US plants and shipped to China or India. For decades I've watch barge load upon barge load of shredded steel shipped to Asia. No more. Nothing is better than American steel. We perfected the process and sold the technology to Asia.

Take a tour of an old steel plant. Talk with the old timers. They'll tell you about how this building used to house 10 pickling lines. That building used to house rolling mills. This building used to have furnaces. Now? Empty. Long gone. It's depressing as hell to see and listen to these guys.

Who does this tariff benefit? Americans. We are reviving equipment and buying new equipment to revitalize the steel and aluminum industry that has long left the US.

It doesn't matter what the MSM says. Without a doubt we are seeing a massive bump in US based capitol equipment spending that started with the tax plan and is continuing with the tariff. This is hard, verifiable data. Americans are going to benefit for generations to come because of this.

Will we suffer a little short term as these plants modernize? Yes. It takes a lot of, money, equipment, skill, and tribal knowledge (that we've lost) to make metal products. Steel and AL prices will rise. But once we jump start these machines and get this country back to it's manufacturing roots prices will normalize. This is how we put Americans to work on many levels of the game. From equipment suppliers to production facilities.

What better way to spur an economy that has seen terrible GDP growth over the last 10 years than to revitalize a heavy industry.

Tariffs are taxes on consumers. They hurt not help Americans because they make end products more expensive.

 

[BrunotheBoxer]

I smell a commie.

If you are a seller of AL and FE it helps, if you are a buyer of AL and FE, it hurts. I suspect you do not run US based steel mills, so it hurts you.

You must be smellin your own breath.

 

[Coiled03]

Tariffs are taxes on consumers. They hurt not help Americans because they make end products more expensive.

Only if the products consumers are buying require the materials to which the tariffs apply, and those products can't be acquired elsewhere, cheaper. Can you not think any further ahead than this?

 

[Klaus]

Only if the products consumers are buying require the materials to which the tariffs apply, and those products can't be acquired elsewhere, cheaper. Can you not think any further ahead than this?

By definition, a tariff is a tax. Taxes, by definition, make things more expensive. You will pay more for anything that uses the taxed good as an input. Since steel and aluminum is used in just about everything the potential consequences are significant. That is why the stock market has embraced the news by selling the **** off for the last three days.

 

[JPKII]

Tariffs are taxes on consumers. They hurt not help Americans because they make end products more expensive.

As I said, surmise what you will. Bottom line, our business is screaming because of the revisions to corporate tax structures and even the threat of a tariff. And if my business is selling machines we are putting Americans to work building American products. Pretty simple concept.

 

[Klaus]

You must be smellin your own breath.

So you like it when government picks winners and losers then Sounds commie to me....

(Sorry, I couldn't resist. I am a chest beating capitalist myself)

 

[Coiled03]

By definition, a tariff is a tax. Taxes, by definition, make things more expensive. You will pay more for anything that uses the taxed good as an input. Since steel and aluminum is used in just about everything the potential consequences are significant. That is why the stock market has embraced the news by selling the **** off for the last three days.

Do you not see that if we start to product said steel and aluminum HERE, we won't have to worry about the tariff? That's why businesses HERE are excited. They see it as an opportunity.

The stock market is selling off because they're scared the nations we trade with that are most heavily impacted by this will retaliate in some way. Yes, that's a risk. A small one, but it's real.

 

[Klaus]

Do you not see that if we start to product said steel and aluminum HERE, we won't have to worry about the tariff? That's why businesses HERE are excited. They see it as an opportunity.

The stock market is selling off because they're scared the nations we trade with that are most heavily impacted by this will retaliate in some way. Yes, that's a risk. A small one, but it's real.

US steel production has actually changed a lot less than I think you think
https://tradingeconomics.com/united-states/steel-production

Domestic production is roughly in line with what it was in the 80s and 90s (which I find shocking, if you were to listen to DJT's rhetoric you would think it was in freefall).

Regardless of your opinion on protectionist trade policy, the market does not like because tariff = tax, tax = increased cost, increased cost = decline in consumption. That is bad for the economy, not good for the economy.

Edit: here is something that landed in my inbox literally a moment ago that does a good job of explaining why protectionist trade policy is misguided
https://theconversation.com/economi...ica-first-tariff-policy-is-so-dangerous-92715

 

[BrunotheBoxer]

So you like it when government picks winners and losers then Sounds commie to me....

(Sorry, I couldn't resist. I am a chest beating capitalist myself)

No I like it when the American government puts America first.

 

[ford fanatic]

The biggest steel plant in our area that once employed 30,000 people finally closed it's gates a few years ago. In it's place now are warehouse hubs like Fed Ex, and Under Armor paying less than half of what the steel workers were making. I wish this would have happened earlier...

 

[4a7191a]

I work in the steel industry.
I'm not sure how this will affect us. At one point China was making steel and getting rid of it at a loss to keep it's workers working . They might adjust , use cheaper scrap and still make a profit . We used to make a grade that was used in tire cord. I'm not sure who has it now, or if it did go overseas.
That keeps us afloat is the high carbon grades. 1080's-1090's rebar can be made quickly but it's essentially trash with alot of alloys in it.
I don't trust this industry at all and actually am seeking employment elsewhere. Lol

 

[Blown 89]

I'm shocked so many of you support this. Here's a good listen for those that don't understand why so many people are astonished at this policy.
https://soundcloud.com/benshapiroshow/ep487

 

[hey11101]

Im looking forward to this deal passing, I am in trucking industry( have about 20 trucks) we haul aluminum coils all the time. If this passes more good paying loads for me.

 

[dan_dmg_gt01]

This actually benefits NuCor directly up the road from me. They produce some of the highest quality types of steel and actually developed the new type that's about to be used for trucks. Lighter than aluminum but stronger than traditional steel. A friends wife is high up in management at the plant/engineering division.

I actually worked for a short time at the NuCor facility in Waterloo Indiana back in 2005 when I was jumping between steel building companies. Great company to work for.

I work for a subsidiary of Nucor and we get a lot of our steel from their mill on the other side of town. People are pretty hopefull this will put the mills at capacity with steel orders. Which should trickle down and make us busy as well. Seriously hoping this summer is the busy year we've been waiting on.

 

[nickf2005]

I guess since we primarily use Zinc, there shouldn't be much of a worry!

I get the theory of what this is trying to do. Just not convinced, yet, that it will work.

Sent from my SAMSUNG-SM-G890A using the svtperformance.com mobile app

 

[nxhappy]

this is awesome news, Trump actually knows what the **** helps America.

we pay out the ass when sending freight overseas, I see it daily at work. These duties and taxes keep Asia and Europe THRIVING. So guess what ....America needs to do the same, even on a larger scale. Many of you don't know it, but they **** us hard on our exports. The favor needs to be returned. It could be a big money maker for the US.