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Why Trump tariffs haven't revitalized American steelmakers
Source: Associated Press
Why Trump tariffs haven’t revitalized American steelmakers
By BANI SAPRA and PAUL WISEMAN
November 4, 2019
WASHINGTON (AP) — President Donald Trump’s move last year to tax imported steel triggered jeers but also cheers. Its goal — to raise steel prices — threatened to hurt the legions of U.S. manufacturers that depend on steel.
But at least it would benefit U.S. steel companies and the Americans who work for them. That was the idea, anyway.
Yet Trump’s 25% tariffs, it turns out, have done little for the people they were supposed to help. After enjoying a brief tariff-induced sugar high last year, American steelmakers are reeling. Steel prices and company earnings have sunk. Investors have dumped their stocks.
The industry has added just 1,800 jobs since February 2018, the month before the tariffs took effect. That’s a mere rounding error in a job market of 152 million and over a period when U.S. companies overall added nearly 4 million workers. Steelmakers employ 10,000 fewer people than they did five years ago.
-snip-
What’s caused steel prices to fall are factors ranging from lower demand — thanks to a weaker global economy — to the industry’s own rush to boost production after Trump’s tariffs took effect.
-snip-
By BANI SAPRA and PAUL WISEMAN
November 4, 2019
WASHINGTON (AP) — President Donald Trump’s move last year to tax imported steel triggered jeers but also cheers. Its goal — to raise steel prices — threatened to hurt the legions of U.S. manufacturers that depend on steel.
But at least it would benefit U.S. steel companies and the Americans who work for them. That was the idea, anyway.
Yet Trump’s 25% tariffs, it turns out, have done little for the people they were supposed to help. After enjoying a brief tariff-induced sugar high last year, American steelmakers are reeling. Steel prices and company earnings have sunk. Investors have dumped their stocks.
The industry has added just 1,800 jobs since February 2018, the month before the tariffs took effect. That’s a mere rounding error in a job market of 152 million and over a period when U.S. companies overall added nearly 4 million workers. Steelmakers employ 10,000 fewer people than they did five years ago.
-snip-
What’s caused steel prices to fall are factors ranging from lower demand — thanks to a weaker global economy — to the industry’s own rush to boost production after Trump’s tariffs took effect.
-snip-
Read more: https://apnews.com/7fb57393bd7040fca17901ea0c15214f
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