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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: locogringo who wrote (1121631)	3/1/2019 2:20:54 PM
From: Celtictrader	Respond to of 1576323

LocoEstupido or Dumber than a box of Rocks ? Lawrence O'Donnell Retweeted reason Americans pay the Trump tariffs and Trump doesn't know that because, as a former Fed chair said, Trump doesn't comprehend macroeconomics. reason @reason In the end, the steel tariffs have made the production of American-made products more expensive. Learning the Lessons of Protectionism the Hard Way Trump’s tariffs keep harming American businesses and consumers. Protectionism begets protectionism. The latest example of this sad state of affairs comes to us via the U.S. International Trade Commission. It ruled in January that American producers of line pipe are being hurt by imports of large-diameter line pipe from China and India, among other places. The remedy will likely be higher duties. Some background: Back in March 2018, President Donald Trump cited national security concerns to impose steel tariffs on our trading partners. At the time, trade experts warned that these duties (imposed under Section 232 of the Trade Expansion Act of 1962) would inevitably make the lives of American manufacturers more difficult. Trump's 25 percent tariffs would significantly raise the price of imported steel used by American firms. Experts also predicted that manufacturers using domestic steel would pay a higher price. These predictions have proved correct. Unfortunately for U.S. producers, the higher costs are difficult to avoid. For starters, the type of steel that they want to import may not be produced in the United States, meaning that those producers must continue importing metal at the higher, tariffed prices. Yet even if substitutes for imported steel are produced in the United States, the quality might be inadequate, or the prices may already be higher. Moreover, although the Department of Commerce has put in place a process for requesting exemptions from the tariffs, this process has proved to be a nightmare. As my colleagues Christine McDaniel and Danielle Parks have documented, the steel industry—which stands to benefit massively from the tariffs—has objected to the exemptions. More often than not, the steel lobby has asserted that the exemptions sought by steel-using American firms aren't necessary because U.S. steel producers could start producing more such steel domestically. That claim is highly dubious. The burdensome nature of the exemption request process itself combined with the lack of recourse for firms that are denied exemptions rarely yields positive results for steel-using American producers. Then they're left paying higher prices for an important input. In the end, the steel tariffs have made the production of American-made products more expensive. This makes those American producers who use steel less competitive on global markets. reason.com