Biden should cut tariffs | Local columnists
Amid reports of talks between the United States and European Union trade officials to review Trump-era tariff policies, US steel companies are urging the Biden administration to keep those tariffs in place. Tariffs, which are just taxes on American businesses and consumers, made no sense under President Trump and now makes no sense. President Biden should abandon all protectionist policies of the Trump era.
In 2018, President Trump decided to impose tariffs on steel and aluminum.
While he officially invoked national security concerns to do so, it was still evident that President Trump, who never seemed to understand that trade was not a zero-sum game, thought he was in the game. US economic interest in engaging in long-discredited protectionism.
The non-partisan Tax Foundation estimated that Trump’s tariffs, in the long run and coupled with the impact of retaliatory tariffs, would reduce long-run GDP by 0.51%, cut wages by 0.35% and cost nearly 400,000 full-time jobs.
The reason is simple: the tariffs make their acquisition more expensive for the companies which depend on the affected goods. Thus, while many US steel companies have benefited from tariffs, this has not been the case for import-dependent sectors.
A few weeks ago, a group of more than 300 manufacturing companies called for the repeal of the Trump-era aluminum and steel tariffs.
The temporary increase of 4,800 jobs in the steel industry in the United States since 2018 recorded by the Bureau of Labor Statistics is not directly attributable to Section 232 tariffs and is eclipsed by the 6.2 million d US manufacturing jobs threatened in steel and aluminum use industries. ” they wrote. “It’s American manufacturing companies like ours that pay the tariffs on imports, and it’s our businesses and employees who suffer when our product cannot compete with foreign manufacturers because the United States is an island. where steel and aluminum prices are high. “
Indeed, it became evident as soon as President Trump announced the tariffs. And the far-reaching impacts of Trump’s tariffs continue to create problems that never needed to exist in the first place.
Two weeks ago, American distillers were relieved to learn that the European Union was delaying the 50% tax on American whiskey, bourbon and rye in response to Trump’s steel tariffs.
President Biden should simply use his authority to immediately end the tariffs. And, as we demanded under President Trump, Congress should impose controls on the executive’s ability to unilaterally impose tariffs.
Trade makes the world richer. Protectionism does more harm than good. Biden is expected to end the tariffs now.