Korean steelmakers are concerned that heavy tariffs proposed by Donal Trump would hurt their businesses. Mish raises an important issue on Trump's trade policy.
From Mish's blog:
Trump hopes tariffs will bring
back steel manufacturing jobs. It won't happen.
However,
the jobs are gone and will never return. NAFTA has nothing to do with it.
The US
is producing 7.7% more steel than in March of 1990 with over 48,000 fewer
workers.
I
created that Chart in Fred by totalling steel workers in Indiana, Ohio, Texas,
and Pennsylvania. Those are the only states tracked now. If there were more
states tracked in 1990, the decline in workers is even greater. There is
production in other states but it is minimal.
Don't
blame NAFTA. Steel employment went on a deep dive nearly four years earlier.
The
fact of the matter is US plants are aging dinosaurs compared to China's. China
invested in modernized plants, the US didn't.
The
bottom line is simple: If its good for the consumer, it's good policy.
Instead,
Trump is promoting trade wars that mathematically cannot be won.
https://www.themaven.net/mishtalk/economics/foolishness-of-trump-s-steel-tariffs-in-one-image-fBLkKMBRNUK57mnRrBs0qQ
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