The last Thursday March 1st President Donald Trump announced the imposition of tariffs to China in order to reduce the commercial deficit that the US has been carrying for years. With the argument that this would bring the American industry to a splendorous moment of production and with it creating new jobs and work opportunities. Because this tariffs will make decrease the amount of the industry purchased from China and increase the purchase of American made steel industry. However this kind of policies can are not that good and can harm more the US and its general industry that can actually help it.
So as an start The president and it’s administration defend the tariffs appealing that this will bring jobs to the US. ”We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!” Donald Trump. However, that might not be as true as it might firstly seem. According to the Trade partnership “We find that the tariffs would result in a net loss of 146,000 U.S. jobs after accounting for positive impacts on U.S. steel and aluminum producers.” As as far as the steels jobs go the study shows that they actually don’t improve this much either. Furthermore, this situation can bring the steel companies to a moment where they have no competence and make the companies powerful enough to fight against Unions and reduce the amount of workers rights in the industry.
Also the numbers show that most of the jobs in America have not been lost by companies going to other countries but by the change of workers in productions change for robots. In fact the numbers proof that the American production numbers are in the highest level in history. Around the 107.000 points stated by the Industrial Production Index (INDROPO). And the technology of robots is unstoppable. However it seems that the industry at least would be benefited by this protectionist policies. But is that right?
As expected China is ready to counter attack by imposing tariffs to many American products. Making many industries tremble “The Chinese government said that tariffs on about $3 billion worth of US imports are going into effect Monday, hitting 128 products ranging from pork, meat and fruit to steel pipes.” And the threatens to the industry do not only stop there as far as the investors are incredibly scared by the huge threat of the trade war and the stocks markets are going down and with it the value of the companies and its abilities of growing increasing the production.
But the problems keep appearing, as china is using this protectionists policies, by the U.S., to make the European and South American allies of the United States to create a fear situation towards the Trump administration and create deals with it’s important economies such as Germany. “Trump’s less than smooth relationships with both China and Germany have helped push the two countries even closer together.” The Diplomat. This suppose a big threat not only to the Americans industries which in a bi way depend on Germany products but also to the American soft power over other countries in fact the Secretary of defense General Mattis explains that “Either you Mr. Trump invest in soft power or I’ll have to invest more in bullets.”
Clearly this comercial war and the protectionists policies of Mr. Trump are making the US economy tremble and this doesn’t have any signs of changins. But no only that the problem is that the actual administration is not being conscious of the harm that they are creating to the country and how this would mean the final of the American hegemony, freedom and democracy values pursued all around the world.
The move could spark a trade war with major implications for steelmakers, and the economy. “The Global Steel Industry by the Numbers.” CNNMoney, Cable News Network, money.cnn.com/2018/03/02/news/economy/steel-industry-statistics-us-china-canada/index.html.
Lynch, David J., and Damian Paletta. “Trump Announces Steel and Aluminum Tariffs Thursday over Objections from Advisers and Republicans.” The Washington Post, WP Company, 1 Mar. 2018, www.washingtonpost.com/news/business/wp/2018/03/01/white-house-planning-major-announcement-thursday-on-steel-and-aluminum-imports/?noredirect=on&utm_term=.55df1bd9e116.
“How Many American Jobs Could Be Lost Thanks to Trump's Steel and Aluminum Tariffs.” Fortune, fortune.com/2018/03/06/trump-steel-aluminum-tariffs-cost-jobs/.
“Industrial Production Index.” FRED, 17 Apr. 2018, fred.stlouisfed.org/series/INDPRO.
Reuters. “China Warns the US Not to Unleash a 'Pandora's Box' of Trade War Ills on the World.” Business Insider, Business Insider, 29 Mar. 2018, www.businessinsider.com/china-warns-the-us-against-pandoras-box-of-trade-war-ills-for-world-2018-3.
Tharoor, Shashi. “China and Germany: So Far, Yet So Close.” The Diplomat, The Diplomat, 7 Dec. 2017, thediplomat.com/2017/12/china-and-germany-so-far-yet-so-close/.
LastWeekTonight. “Trump vs. The World: Last Week Tonight with John Oliver (HBO).” YouTube, YouTube, 18 Feb. 2018, www.youtube.com/watch?v=QCjk_NPsIqU.