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On Friday night, Trump admitted that US companies whose costs he has raised – by imposing tariffs on the metals they need – are no longer competitive with foreign firms.
Because of his policies, they too must now be shielded from trade...
On Friday night, Trump admitted that US companies whose costs he has raised – by imposing tariffs on the metals they need – are no longer competitive with foreign firms.
Because of his policies, they too must now be shielded from trade...
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Trump announced he was expanding the product coverage of his national security tariffs on STEEL and ALUMINUM to include "derivative" goods that use steel and aluminum as an input - eg, steel nails or aluminum bumpers.
whitehouse.gov/presidential-a…
Trump announced he was expanding the product coverage of his national security tariffs on STEEL and ALUMINUM to include "derivative" goods that use steel and aluminum as an input - eg, steel nails or aluminum bumpers.
whitehouse.gov/presidential-a…
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Imports of those "derivative" products have increased, in part because US companies have had their COSTS go up because of Trump's tariffs on steel and aluminum.
In Econ 101 terms, the cost increase shifts the US supply curve (DS) to the LEFT
That makes imports INCREASE.
Imports of those "derivative" products have increased, in part because US companies have had their COSTS go up because of Trump's tariffs on steel and aluminum.
In Econ 101 terms, the cost increase shifts the US supply curve (DS) to the LEFT
That makes imports INCREASE.
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Economists call this "cascading protection."
Trump's tariffs on inputs lead to higher costs for US companies making the downstream products, and this results in a clamoring for ADDITIONAL trade protection for those products.
This was all completely predictable.
Economists call this "cascading protection."
Trump's tariffs on inputs lead to higher costs for US companies making the downstream products, and this results in a clamoring for ADDITIONAL trade protection for those products.
This was all completely predictable.
