Madison, WI
The article observes that tariffs won’t apply to domestic production, but
experience suggests that domestic producers will use the increased import
costs as a screen behind which to impose their own price increases, so price
inflation won’t be limited only to imports. Second, the prospective “losers”
(users of imported steel and aluminum) represent a larger share of the US
economy than do the “winners” (steel and... mehr anzeigen
Madison, WI
The article observes that tariffs won’t apply to domestic production, but
experience suggests that domestic producers will use the increased import
costs as a screen behind which to impose their own price increases, so price
inflation won’t be limited only to imports. Second, the prospective “losers”
(users of imported steel and aluminum) represent a larger share of the US
economy than do the “winners” (steel and aluminum producers) and also include
consumers who will see prices rise. Third, the big risk (big because of
consequences and its uncertainty) arises from the “ripple effects” of
potential retaliation and impact on the global trading system. Since all of
these calculations amount to a negative balance for the US, one might ask why
Trump is taking this step. It is hard to avoid the conclusion that it’s all
about his perception of personal political benefit.
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