Breaking News
0

Five Things You Need To Know About Trump's Tariffs

EconomyMar 07, 2018 10:07AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Investing.com - President Trump says "trade wars are good", but history suggests otherwise. Here's five things you need to know about the President's decision to raise tariffs on steel and aluminum.

1. Jobs Will Be Saved And Lost

The President wants to protect 170,000 jobs in the steel and aluminum industries.
But an analysis of the Bush steel tariffs a decade ago concluded they resulted in the loss of 200,000 jobs in other industries.

2. Wrong Trade Partner Punished

The President is unhappy about the U.S. trade deficit with China, but China accounts for only 2% of U.S. steel imports. Meanwhile, Canada, with whom the U.S. has a trade surplus, accounts for 16% of steel imports.

3. Higher Costs For Consumers

The tariffs will raise material costs for Ford and General Motors (NYSE:GM) by a combined $500 million a year. That will add $200 to the price of a car.

4. Retaliation Will Hurt

The European Union has threatened retaliation by imposing tariffs on American goods, such as blue jeans, bourbon and motorcycles, which could destroy an estimated 190,000 jobs.

5. Higher Interest Rates

Foreign governments could pull back on their purchase of U.S. government debt, raising interest rates and borrowing costs for companies and consumers.

Five Things You Need To Know About Trump's Tariffs
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email