Trump imposes tariffs on steel and aluminum in a trade war with some exemptions for Canada and Mexico.

Olivia London

2018-03-01 07:35:00 Thu ET

Trump imposes high tariffs on steel (25%) and aluminum (10%) in a new trade war with subsequent exemptions for Canada and Mexico. The Trump administration's Trade Act Section 232 investigation suggests that the main sources of U.S. steel-and-aluminum trade deficits are Canada, Europe, Mexico, and China.

In light of both Section 301 and Section 232 investigations, the steel and aluminum tariffs seem to target China and the European Union. There are a pair of pertinent problems with imposing tariffs on foreign imports of this nature. First, the tariff tactic is a massive diplomatic gambit. In effect, this tactic may pose the imminent risk of retaliation from multiple countries. Second, this strategic move can inevitably lead to higher consumer prices from food cans to cars and airplanes insofar as these products involve the use of steel or aluminum. These price increases can thus feed back to fuel higher inflation in America. Also, American households and firms may experience higher costs and so lower disposable income. The resultant decrease in aggregate demand can be detrimental to U.S. economic output, employment, capital investment, and so on. When push comes to shove, the law of inadvertent consequences counsels caution.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

AYA fintech finbuzz analytic report on the global macro economic outlook Summer-Fall 2019

Andy Yeh Alpha

2019-08-07 08:32:00 Wednesday ET

AYA fintech finbuzz analytic report on the global macro economic outlook Summer-Fall 2019

Our fintech finbuzz analytic report shines fresh light on the current global economic outlook. As of Summer-Fall 2019, the current analytic report focuses o

+See More

Empirical tests of multi-factor models for asset return prediction

Apple Boston

2022-02-25 00:00:00 Friday ET

Empirical tests of multi-factor models for asset return prediction

Empirical tests of multi-factor models for asset return prediction  The capital asset pricing model (CAPM) of Sharpe (1964), Lintner (1965), and Bla

+See More

Disruptive innovators often apply their 5 major skills in new niche discovery and market share dominance.

James Campbell

2020-05-07 08:26:00 Thursday ET

Disruptive innovators often apply their 5 major skills in new niche discovery and market share dominance.

Disruptive innovators often apply their 5 major pragmatic skills in new blue-ocean niche discovery and market share dominance. Jeff Dyer, Hal Gregersen,

+See More

Senator Elizabeth Warren proposes breaking up key tech titans such as Facebook, Apple, Microsoft, Google, and Amazon (FAMGA).

Becky Berkman

2019-03-21 12:33:00 Thursday ET

Senator Elizabeth Warren proposes breaking up key tech titans such as Facebook, Apple, Microsoft, Google, and Amazon (FAMGA).

Senator Elizabeth Warren proposes breaking up key tech titans such as Facebook, Apple, Microsoft, Google, and Amazon (FAMGA). These tech titans have become

+See More

Google CEO Eric Schmidt and his co-authors show the innovative corporate culture and mission of the Internet search tech titan.

Daisy Harvey

2020-03-12 09:32:00 Thursday ET

Google CEO Eric Schmidt and his co-authors show the innovative corporate culture and mission of the Internet search tech titan.

Google CEO Eric Schmidt and his co-authors show the innovative corporate culture and mission of the Internet search tech titan. Eric Schmidt, Jonathan Ro

+See More

Global financial markets suffer as President Trump promises *fire and fury* in response North Korean nuclear ambitions.

Daisy Harvey

2017-08-07 09:39:00 Monday ET

Global financial markets suffer as President Trump promises *fire and fury* in response North Korean nuclear ambitions.

Global financial markets suffer as President Trump promises *fire and fury* in response to the recent report that North Korea has successfully miniaturized

+See More