US President Donald Trump has slapped tariffs on foreign steel and aluminum in his supposed bid to protect jobs in the American steel industry – something that many presidents before have tried.
Critics, however, is doubtful on until when Trump will hold all these together.
“Steel has long been a politically sensitive issue, especially since much of the production takes place in swing states such as Pennsylvania. Pro-union Democrats have pushed for tariffs and other restrictions for years — many quietly support Trump’s move — and it’s one of the few industries that Republican presidents have singled out for protection,” said Market Watch.
In an article, Market Realist said tariffs “will not solve the challeges facing the aluminum industry” as the US still needs to importat at least 60 percent of required primary aluminum from Canada. This, the report said, is “key to the North American supply chain.”
The European Union, on the other hand, is set to retaliate by slapping tariffs on a range of American products. The Guardian said in its report that if “Trump responds to Europe’s countermeasures with fresh action of his own, the conflict could escalate quickly.”
If such happens, consumers may be at the losing end as it will push up the costs of steel products.
Meanwhile, there is currently an impending nationwide strike among steele workers who are not very happy in the recent developments, especially since this is supposedly Trump’s 2016 campaign promise as American jobs are supposedly in peril as a result of unfair global trade, said The Guardian in its report.
While steele companies have raked in a whopping $2 billion, the workers are not too happy about as the profits are not shared with them, said Washington Post, adding that this could “trigger a nationwide strike, which might in turn weaken working class support for Trump in the crucial months before the 2018 mid-term elections.”
Washington Post noted that the profits will only be shared to steele workers if they are “powerful enough to bargain for higher wages.”