Tariffs Only Hurt The Homeland
Last week President Trump announced his plans for steel and aluminum tariffs in an attempt to keep true to his promise and save the steel workers jobs. The truth is that while it may save steel jobs, almost every other job sector will take a hit. Domestic consumers will feel it across the board as well.
While it is true that taxing incoming goods does promote domestic businesses to purchase from other domestic businesses, it also raises the price as producers no longer have access to the cheapest goods possible. Beer manufactures and soda producers, who use aluminum for cans, have already come out and said Americans will be paying the cost in the ballpark of $250-350 million a year. And that is just one industry.
Hundreds if not thousands of the United States producers will feel this. Cars, technology, appliances, ect. all rely heavily on the newly taxed materials. But it is the consumers who will feel it the most. The foreign companies will simply raise prices to protect their bottom line and cover the tax. The domestic businesses will follow suit and do the same, and the cost will fall squarely on the shoulders of the American people.
Businesses will feel it as well as sales in particular industries may suffer as rising prices may scare away perspective buyers. That new car you once thought you needed may now be priced out leaving you with a recent year low milage used one you picked up on the low.
The one group who I have not touched on that is also heavily effected are domestic workers outside the steel production industry. Since it is now more costly to import raw steel and aluminum to manufacture goods, companies may move their factories outside the country to benefit from cheaper prices on supplies. Then after producing it at a lower cost they can simply import the finished product and not pay the steel tariff. Back to the car example, now you can no longer buy a new Ford, but that Honda or Volkswagen is sitting in that price range.
Top that with the real possibility of other nations imposing retaliatory tariffs on our goods to level the playing field and you see how this goes back and forth real quick rising the price of everything rapidly.
Again and again you see that tariffs only harm those it is closest to.