According. The cost is high in other areas.
The 25% tax rate will be applied to all shipments of steel and aluminum. Although Canada is heavily influenced by this measure as the leading US steel supplier, this tax also targets China - a country that accounts for more than half of the global steel production.
Washington Post said that the US steel and aluminum supplier will be the beneficiary. Taxes on imported goods cause foreign suppliers to increase prices. This means that US companies supply steel and aluminum will have the opportunity to lower costs compared to foreign competitors when steel from trading partners like Canada, Brazil and Mexico is more expensive.
Philip Bell - Chairman of the Association of Steel Manufacturers - said that the new US tax rate will help "balance the playground" for domestic manufacturers. He affirmed that the 25% tax rate with steel used in a conventional car worth $ 40,000 will make the price increase by 1 or 2%.
However, some groups will suffer losses:
Consumer
Aluminum and steel are used in many types of items, meaning that the higher import tax will eventually affect consumers. In the early February report, Bank of America's retail analysts said that even soft drinks may be affected. However, it is not clear how long it takes consumers to feel the impact and to what extent.
Lydia Cox - Professor of Economics at the University of Wisconsin -Madison - said that partly because this depends on the amount of steel or aluminum used to produce products.
Instead, businesses and manufacturers - units that buy steel and aluminum in bulk - will be the first objects to record the price increasing, Douglas Irwin, an economics professor at Dartmouth University. .
American manufacturer
2018 analysis on steel tax of 25% in the first term of President Trump published by the International Economic Institute Peterson shows that this policy has created a job but causes great damage to many foreign steel buyers. In the US. Steel tax has produced about 8,700 jobs and generated about 2.4 billion USD of profit before tax for steel companies. However, domestic industries buying steel in the US have to pay an additional $ 5.6 billion for this move, which costs about US $ 650,000 for each job created in the steel industry.
Gary Hufbauer, a senior researcher at the Peterson Institute and is one of the authors of the study, does not expect the new tariff level will create new jobs because the new tax is only valid to replace the current quota. Companies use to limit exports to the US.
However, the escalation of trade wars through similar tax attacks will lead to retaliation for some American products and companies. "In general, the US low -source industries will suffer and will certainly lose their jobs in the US manufacturing industry, like what happened during Trump 1.0," he said.
Analysts indicate that companies like John Deere, Caterpillar and Boeing may be affected by the latest tax attack because the product uses a lot of aluminum or steel. Private developers, state and local governments who are repairing infrastructure will also be affected.
American export unit
According to analysts, some US export industries can see the impact from President Trump's latest tax attack when other countries respond. For example, with export of agricultural products, countries can easily find a source of soy, wheat and other agricultural products instead of sources from the US. This is what happened in the first term of President Trump.
