Nailed by Steel Tariffs: Trump protectionism is driving a Missouri company to the brink.

[IsailedawayfromFR]

By making Americans pay 25% more for the same steel the rest of the world buys?

a very easy argument to rebut by a simple search of other countries' tariffs structure.
https://www.wto.org/english/tratop_e/tariffs_e/tariff_data_e.htm

BTW, you are delusional if you believe either no one has tariffs placed already on our goods as well as a tariff necessarily translates to exactly an equivalent increase in price.

[Maj. Bill Martin]

There is a huge difference between :

1) protectionism designed to give failing domestic industries an unfair advantage;

2) "protectionism" intended to level the playing field because foreign governments are giving their industries an unfair advantage.

The first is never good policy, the second may be good policy if it is part of a strategy to get other countries to eliminate unfair price supports.  I think what Trump is doing is 2), not 1).

[txradioguy]

a very easy argument to rebut by a simple search of other countries' tariffs structure.
https://www.wto.org/english/tratop_e/tariffs_e/tariff_data_e.htm

BTW, you are delusional if you believe either no one has tariffs placed already on our goods as well as a tariff necessarily translates to exactly an equivalent increase in price.

It would be one thing if our prices for the same product stayed the same when we put a tariff on their product...but the companies in our country being protected raise their prices to almost the equivalent of the imposed tariff. 

Bottom line...the consumer gets screwed and the companies still make a profit.

[IsailedawayfromFR]

It would be one thing if our prices for the same product stayed the same when we put a tariff on their product...but the companies in our country being protected raise their prices to almost the equivalent of the imposed tariff. 

Bottom line...the consumer gets screwed and the companies still make a profit.

seems that companies are not agreeing with your 'facts'.

https://www.breitbart.com/economics/2018/09/12/producerpriceindex/

[txradioguy]

seems that companies are not agreeing with your 'facts'.

https://www.breitbart.com/economics/2018/09/12/producerpriceindex/

 

The Trump administration's decision to impose tariffs on imported steel and aluminum last week unleashed much hand-wringing over the possibility of a global trade war. But White House policies are already squeezing profits at Skyline Steel Corp., a Brooklyn company that has specialized in making staircases and railings since 1979. Domestic steel prices have already jumped by 40% this year in anticipation of Trump's carrying through with his threats of protectionism. Skyline owner Arthur Rubinstein worries prices will now rise even higher.

"It's been a wonderful experience the last few months," he joked.

Rubinstein said a $1 million construction project for his small company typically uses $200,000 worth of steel. But the cost of that steel has risen about $40,000 in the past five months, and his multiyear contracts don't allow him to pass along increased costs to customers once a job is underway.

He noted that domestic steel manufacturers are raising prices to match the cost of imported steel after tariffs, even though their production costs haven't increased. "It seems to be profiteering by domestic producers," Rubinstein said, adding that he's angry with Commerce Secretary Wilbur Ross, a leading advocate for tariffs who made a fortune on Wall Street by buying and selling steel mills in the U.S. and overseas.

http://www.crainsnewyork.com/article/20180606/POLITICS/180609980/tariffs-on-foreign-steel-raising-domestic-prices-too

You were saying?


But wait there's more:

President Donald Trump's tariffs are leading to higher import costs for US-based companies, and it's American consumers who are likely to bear the burden.

While the White House has pointed to national security issues as justification for the tariffs, there's also a practical economic component to Trump's duties. The tariffs on foreign imports such as washing machines, steel, and aluminum are designed to make foreign goods more expensive and therefore US manufacturers more appealing.

Since these tariffs have been in place, several US companies including Coca-Cola and Winnebago have said they have been forced to raise prices on the consumer's side. Others are threatening to follow suit.

According to the Labor Department, the average cost of washing machines was up 17% in just the past three months, The Wall Street Journal reported.

https://www.businessinsider.com/trump-tariffs-make-coca-cola-gm-more-expensive-2018-8

According to the central bank's latest "Beige Book" report, manufacturers in some parts of the country are reporting higher prices and supply disruptions, which they attribute to the Trump administration's move to impose or threaten tariffs on hundreds of billions of dollars in imports from China, the European Union and other major U.S. trading partners. 

"The U.S. economy was in good shape in the middle of the year, according to the latest Beige Book, but concerns are growing," said Gus Faucher, chief economist with PNC Financial Services Group, in a research note. "Business contacts were concerned about trade as the United States and its trading partners began to implement tariffs, with talk of escalation."

https://www.cbsnews.com/news/manufacturers-starting-to-take-hit-from-u-s-tariffs-fed-beige-book-reports/

[Formerly Once-Ler]

http://www.crainsnewyork.com/article/20180606/POLITICS/180609980/tariffs-on-foreign-steel-raising-domestic-prices-too

You were saying?


But wait there's more:

https://www.businessinsider.com/trump-tariffs-make-coca-cola-gm-more-expensive-2018-8


https://www.cbsnews.com/news/manufacturers-starting-to-take-hit-from-u-s-tariffs-fed-beige-book-reports/

Great post @txradioguy

[txradioguy]

Great post @txradioguy

@Once-Ler thanks.  I know what I posted will be dismissed as me just being (falsely) labelled a "nevertrumper"...but when I make statements like I have repeatedly about domestic steel manufacturers raising their prices to match the tariff increases...it's not something I just pull out of thin air...I've done research...and gotten the facts.

[Hoodat]

seems that companies are not agreeing with your 'facts'.

https://www.breitbart.com/economics/2018/09/12/producerpriceindex/

There are a few things wrong with the Breitbart story.  It starts off stating that the producer-price index fell during the month of August, (which is expected as an economic norm due to innovation and increased efficiency).  It then dismisses the claim that tariffs will drive up consumer cost by substituting the producer-price index in place of the consumer-price index.

The article also admits that the prices of intermediate goods containing steel or aluminum have increased 6.3% over last year even though they dropped 0.1% from July to Aug.  So one month of data does not wipe out a one-year trend.  The article goes on to cite rises in durables materials and consumer goods since the beginning of the year, again indicative that the 0.1% Aug decline is not indicative of the overall trend.

It saddens me to see how far Breitbart has fallen.  They were near the front of the line blasting Obama and his tire tariff.  Yet now that Trump is doing the same thing with steel, they suddenly jump on board with leftist trade policies.

[Formerly Once-Ler]

I know what I posted will be dismissed as me just being (falsely) labelled a "nevertrumper"

@txradioguy

It obviously bothers you. 

I have no trouble wearing my NT label.  It is no worse than than being labeled an Obama or Hitlery supporter by the dumbest people on the planet.  It is no worse than being called a Republican In Name Only, by people who never had a kind word for a GOP politician, and even though I voted straight GOP for almost 30 years.  It is no worse than crying like an idiot when the GOP took back control of the House in 94 for the first time in 40 years, or dreaming that VP candidate Jack Kemp was going to mean something to voters, or falling in love with Sarah Palin, or watching a half dozen honest, and decent conservative candidates for President get steamrolled by Dwayne Elizondo Mountain Dew Herbert Camacho Trump and his allies in the fake media...just to watch the fruits of my labor and prayer swirl down the toilet of history in a burning, smelly, embarrassment.

Don't take it personally.  Trump fans see in you a strong conservative, clear in facts and principle, and it eats them up inside for what they have given up.  Pity them.

[roamer_1]

or watching a half dozen honest, and decent conservative candidates for President get steamrolled by Dwayne Elizondo Mountain Dew Herbert Camacho Trump and his allies in the fake media...just to watch the fruits of my labor and prayer swirl down the toilet of history in a burning, smelly, embarrassment.

 

Don't take it personally.  Trump fans see in you a strong conservative, clear in facts and principle, and it eats them up inside for what they have given up.  Pity them.

That's right.

[IsailedawayfromFR]

There are a few things wrong with the Breitbart story.  It starts off stating that the producer-price index fell during the month of August, (which is expected as an economic norm due to innovation and increased efficiency).  It then dismisses the claim that tariffs will drive up consumer cost by substituting the producer-price index in place of the consumer-price index.

The article also admits that the prices of intermediate goods containing steel or aluminum have increased 6.3% over last year even though they dropped 0.1% from July to Aug.  So one month of data does not wipe out a one-year trend.  The article goes on to cite rises in durables materials and consumer goods since the beginning of the year, again indicative that the 0.1% Aug decline is not indicative of the overall trend.

It saddens me to see how far Breitbart has fallen.  They were near the front of the line blasting Obama and his tire tariff.  Yet now that Trump is doing the same thing with steel, they suddenly jump on board with leftist trade policies.

don't like Breitbart?

How about today's Wall Street Journal?

https://www.wsj.com/articles/trumps-income-bump-1536793484?mod=mhp

[txradioguy]

@txradioguy

It obviously bothers you.

Only to the extent that there is documented evidence to the contrary here and I pride myself on the facts.

Don't take it personally.  Trump fans see in you a strong conservative, clear in facts and principle, and it eats them up inside for what they have given up.  Pity them.