Pandora's Box: Another Look At Steel Tariffs

Even if one foolishly believes tariffs can be a good thing, Trump went well beyond any semblance of rational thinking.

The Peterson Institute for International Economics (PIIE) reports US Steel Is Already Highly Protected from Imports.

The US steel industry has been the largest beneficiary of special protection from imports for decades, with more than 60 percent of steel imports subject to tariffs at the end of 2017. The average share of all US imports from the world covered by this sort of special protection was only 4 percent as of 2016. Furthermore, special restrictions already cover 94 percent of steel imports from China, which now make up only 3 percent of all US steel imports. On March 8, President Trump announcedhe is imposing tariffs of 25 percent and 10 percent on all foreign sources of steel and aluminum, respectively—with the exception of Canada and Mexico, as well as possibly others—on the basis that these imports pose a threat to national security.

Also, consider Trump’s Steel and Aluminum Tariffs Are Counterproductive. Here Are 5 More Things You Need to Know.

Five Things

Steel has been the largest beneficiary of special protection for decades.

More than 90 percent of steel imports from China have already been hit with special US steel tariffs.

Trading partners vary considerably as to who has already been hit with US steel tariffs. China was only the 10th largest supplier of steel to the US market in 2017 ($976 million), largely because 94 percent of those exports were already subject to special tariffs.

Aluminum has only recently become a beneficiary of special protection.

Aluminum’s special protection to date has been directed exclusively towards China

Aluminum Protection

Aluminum Share

National Security Lie

Trump’s “national security” angle is an obvious lie. Most US steel imports come from allies, including Canada. Most aluminum imports come from Canada.