How Trump’s Steel and Aluminum Tariffs Could Affect Americans

The Trump administration has revived a trade practice that has been largely out of favor since World War II: the tariff. Imported metals from U.S. allies Canada, Mexico, and the European Union (EU) will carry tariffs of 25 percent for steel and 10 percent for aluminum. It seems likely that the Trump administration did not fully think through the range of impact these tariffs will have. It wouldn’t be surprising if the administration’s thinking were along the lines of something as simplistic as “So don’t buy any steel or aluminum products.”

But Americans will not be able to avoid the broad impact that the tariffs on steel and aluminum will have. Since steel and aluminum imports will be more expensive, so will the products that contain components made of these metals. Appliances, automobiles, and airplanes will likely be more expensive, as will construction products such as pipes, culverts, wire, and beams. The food industry will also be impacted as cans, packaging, and cookware are likely to be more costly.

Though it’s true that American companies could choose not to use imported steel or aluminum and use only domestic-made metals, we don’t know yet whether American manufacturers can currently supply all of the aluminum and steel that we import.

Even if the American metal industry can meet all of the domestic need for steel and aluminum, costs are likely to rise. With the reduced threat of foreign price competition, American manufacturers could raise their prices.

If American companies do continue to import steel and aluminum and pay the tariffs, their costs will increase. This will result in less profitability, which could force them to raise prices on goods, eliminate jobs, reduce operations, or all of these.

The tariffs on steel and aluminum are likely to cause American stocks to suffer, as well, as Wall Street fears trade wars and the potential loss of profits. When the tariffs were announced, the Dow plunged 252 points, the S&P 500 lost 0.7%, and Nasdaq lost 0.2%.

Earlier in 2018, Trump tweeted, “When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win…Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore — we win big. It’s easy!”

Trump appears to think that the U.S. will win this trade war. The evidence, however, as supported by most economists, points to the likelihood that with tariffs such as those on steel and aluminum, it’s Americans who will lose.

Chamber of Commerce launching campaign against Trump tariffs | Fox Business [2018-07-02]

Steel CEOs Push for Waivers From Trump’s Tariff | Seattle Times [2018-07-02]

Federal Judge Stops Trump Family Separation Policy

On Tuesday, June 26, as the result of an American Civil Liberties Union (ACLU) lawsuit that began on behalf of a 7-year-old Congolese child separated from her mother, U.S. District Judge Dana Sabraw ordered that the Trump administration stop its family separation policy at the Mexico-U.S. border. The order also requires that children and parents separated as a result of the family separation policy be reunited within specified time limits.

The court order does not prevent the U.S. government from prosecuting illegal migrants, or from enforcing immigration laws. It does, incidentally, underline the fact that the family separation policy was not an immigration law; nor was it a law at all.

“The facts set forth before the Court portray reactive governance – responses to address a chaotic circumstance of the Government’s own making. They belie measured and ordered governance, which is central to the concept of due process enshrined in our Constitution,” Sabraw said.

Here’s what the court order requires:

  • That federal officials stop detaining adults separately from their minor children, except when the parent is determined to be unfit, or when the parent declines to be detained with his/her children
  • That all parents be reunited with their children who are under the age of five within 14 days
  • That all parents be reunited with their minor children who are age five and over within 30 days
  • That parents be allowed to have contact with their children by phone within 10 days, if not already in contact with the child(ren)

Some have argued that the Trump administration’s family separation policy is no different from separating American children from their parents if their parents are jailed. After all, they say, those crossing the border illegally are also breaking the law.

Sabraw pointed out, however, that when an American is jailed, the government keeps track of not only his or her children, but also even personal effects such as money, cars, etc. Trump’s family separation policy had no provision for keeping an account of the migrant children separated from their parents at the border. Consequently, the federal government now faces the challenge of reuniting many of the approximately 2,000 children – many of them too young to talk – with their families.

Nevertheless, citing the vast resources the U.S. government can access when it really needs to get something done, Sabraw, the ACLU, and many others remain optimistic that reuniting these families is possible. What’s more, the court order against the family separation policy is an important hopeful step toward preventing similar practices in the future.

Federal judge orders families separated at border to be reunited within 30 days | CBS This Morning [2018-06-27]

Federal Judge Orders U.S. to Reunite Migrant Children with Their Families After Separation at Border | Democracy Now! [2018-06-27]