They are doing exactly what Trump wants to do with the US worker.
They are doing exactly what Trump wants to do with the US worker.
If u looks at tariffs across all countries, we have the fewest in place.
A cynic would say that past Presidents made themselves feel good by swallowing the one world new economy rhetoric while at the same time accepting lucrative post-office speaking fees and similar disguised bribes. Both parties seem to have been guilty of this.
Over the past several decades, the world has changed thanks to super inexpensive containerized sea-land cargo shipping. Goods can be made where the labor is cheapest. I'm not denying this, but it appears we have gone too far in allowing other countries to protect their industries with tariffs instead of letting free-market economics rule.
Exactly. Those that squall over one tariff on steel or aluminum aren't seeing the big picture.
Tariffs can be used as negotiation tools too. But if you don't have any in place....
Now Minnesota based Polaris is considering moving some production to europe.
http://thehill.com/policy/finance/3...ompany-considering-moving-production-overseas
http://thehill.com/policy/finance/3...ompany-considering-moving-production-overseas
I don't get this, they move overseas and then have to pay a tariff to get their junk sold in America. Its not an export tariff. What am I missing?
Right now they make everything in the US and sell worldwide.
The new European tariffs that start today will be 31%
HD and Polaris will move enough of their production to Europe so that everything they sell in Europe will be made there to avoid the import tariff.
The main reason for the loss of US steel jobs is a huge increase in worker productivity, not imports, and the jobs aren’t coming back
In the 1980s, American steelmakers needed 10.1 man-hours to produce a ton of steel; now they need 1.5 man-hours (see chart above), says Joe Innace of S&P Global Platts. Most American steel is now made at super-efficient mini mills, which use electric arc furnaces to turn scrap metal into steel. (Traditional integrated steel mills make steel from scratch, feeding iron ore and coking coal into blast furnaces.)
Some mini-mills need just 0.5 man-hours to produce a ton of steel, Innace says. Increased productivity means today’s steel mills don’t need as many workers. Steel industry employment peaked at 650,000 in 1953. By the start of this year, U.S. steelmakers employed just 143,000.
Someone should tell Trump about Voestalpine AG’s steel plant in Austria, which reveals the reality of steel production and jobs. A Bloomberg News story from June 20, 2017 offered a fascinating look at how a modern plant can now produce high-quality steel with few workers. The plant in Donawitz, a two-hour drive from Vienna, needs all of 14 employees to make 500,000 tons of steel wire a year. The same mill in the 1960s would have needed as many as 1,000 workers to produce a similar amount albeit of lesser quality.
“We have to forget steel as a core employer,” Voestalpine CEO Wolfgang Eder told Bloomberg. “In the long run we will lose most of the classic blue-collar workers, people doing the hot and dirty jobs in coking plants or around the blast furnaces. This will all be automated.” Voestalpine long ago concluded it couldn’t compete with the low-cost blast furnaces of the Chinese and others. So it has invested in technology to reduce costs while competing to make high-quality niche products. The so-called U.S. mini-mills have done something similar to stay competitive. Tariffs will let those mills raise prices and profits, but they won’t add much more than a token number of new jobs.
The policy point is that Mr. Trump’s tariffs are trying to revive a world of steel production that no longer exists. He is taxing steel-consuming industries that employ 6.5 million and have the potential to grow more jobs to help a declining industry that employs only 140,000.
In the 1980s, American steelmakers needed 10.1 man-hours to produce a ton of steel; now they need 1.5 man-hours (see chart above), says Joe Innace of S&P Global Platts. Most American steel is now made at super-efficient mini mills, which use electric arc furnaces to turn scrap metal into steel. (Traditional integrated steel mills make steel from scratch, feeding iron ore and coking coal into blast furnaces.)
Some mini-mills need just 0.5 man-hours to produce a ton of steel, Innace says. Increased productivity means today’s steel mills don’t need as many workers. Steel industry employment peaked at 650,000 in 1953. By the start of this year, U.S. steelmakers employed just 143,000.
Someone should tell Trump about Voestalpine AG’s steel plant in Austria, which reveals the reality of steel production and jobs. A Bloomberg News story from June 20, 2017 offered a fascinating look at how a modern plant can now produce high-quality steel with few workers. The plant in Donawitz, a two-hour drive from Vienna, needs all of 14 employees to make 500,000 tons of steel wire a year. The same mill in the 1960s would have needed as many as 1,000 workers to produce a similar amount albeit of lesser quality.
“We have to forget steel as a core employer,” Voestalpine CEO Wolfgang Eder told Bloomberg. “In the long run we will lose most of the classic blue-collar workers, people doing the hot and dirty jobs in coking plants or around the blast furnaces. This will all be automated.” Voestalpine long ago concluded it couldn’t compete with the low-cost blast furnaces of the Chinese and others. So it has invested in technology to reduce costs while competing to make high-quality niche products. The so-called U.S. mini-mills have done something similar to stay competitive. Tariffs will let those mills raise prices and profits, but they won’t add much more than a token number of new jobs.
The policy point is that Mr. Trump’s tariffs are trying to revive a world of steel production that no longer exists. He is taxing steel-consuming industries that employ 6.5 million and have the potential to grow more jobs to help a declining industry that employs only 140,000.
They won't be paying European tariffs on products manufactured in Europe. They won't be paying American tariffs on products that they continue to manufacture in America. Foreseeable and uncomplicated, but Trump doesn't get it either. That's what makes trade war so much fun.
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