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According to the Commerce Secretary Does having $700 million salted away help? |
At the whim of the “commander” and without a rational strategy , significant tariffs are planned for imported raw materials, steel and aluminum. For the rest of us these are new taxes.
Normally buying cheaper is a good thing. But, in this case it is bad? The Chinese have dug themselves a hole with over capacity, producing half of the worlds steel causing a collapse in steel prices in 2016. That is a cost to producers and a savings for consumers (us.)
Rather than letting the market adjust normally we are going to disrupt the flow of goods by selecting which workers win and which get kicked, without concern for an imminent trade war. This unstrategy needs a cover and the cover is national security. Where does this ossified thinking come from? Ego? Stoke the base? Wow, watch what happens when I do this?
China has already announced plans to slow production in 2018 by closing plants and working to comply with commitments to reduce pollution.
Isn’t this how a market is supposed to work?