Tuesday, November 24, 2020

Tag: What The Trade War Means For Regular Americans

What The Trade War Means For Regular Americans

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by Mac Slavo, SHTF Plan:

What does the trade war mean for the average everyday working American?  It means higher prices on goods, lost jobs, and economic downturns if the tariffs continue.

President Donald Trump’s steel and aluminum tariffs are particularly concerning for the public. They are bad news for the much bigger sector of the US economy that buys those metals to use them in the goods they produce, according to Quartz.

Take steel, for instance, which is used to make cars, cans, trains, and planes. The pillars of American infrastructure are made of steel, from office buildings to bridges; so are the cranes, excavators, and other machines that build those things reported Quartz. Steel equipment extracts the oil and gas needed to produce all of this stuff. Steel also forms the pipes through which oil and gas flow. US steel-consuming manufacturers dwarf the US steel industry, with more than 6.5 million workers.  Facing higher prices for foreign steel under the Trump tariffs, steel consumers have three terrible options. They can absorb the cost and fire workers, they can absorb the cost and lower their profit margin, or they can pass on the cost to customers.