“The U.S. is the second-largest steel importer in the world, according to the International Trade Administration. In 2023, the U.S. imported 25.6 million metric tons of steel and exported a little more than 8.2 million metric tons. About half of the aluminum used domestically is imported and by global standards, the U.S. has a very small aluminum smelting industry. Steel and aluminum imports to the U.S. were valued at nearly $50 billion in 2024, per Bloomberg.”
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“Imposing levies on steel and aluminum will increase costs for domestic energy projects (which will be passed on to consumers) while hamstringing America’s energy dominance. In recent years, high material costs (and burdensome regulations) have led to cancellations or price tag hikes for offshore wind energy, advanced nuclear power, and transmission line projects. Instead of building oil pipelines to the U.S., these trade barriers could also incentivize Canadian energy companies to invest in other markets, such as Japan, says Wayne Winegarden, an economist at the Pacific Research Institute, a free market think tank. “This really is one of the dumbest things we could be doing,” Winegarden tells Reason.
Importantly, these tariffs won’t accomplish Trump’s stated goal of “making America rich again.”
A study from the International Trade Commission found tariffs on steel (25 percent) and aluminum (10 percent) implemented during the first Trump administration decreased production and increased costs in downstream industries that use these materials by 0.6 percent and 0.2 percent, respectively. Total production in downstream industries was $3.5 billion less in 2021 because of these tariffs. The Tax Foundation estimates that repealing tariffs and their quotas would increase long-run gross domestic product by $3.5 billion and create thousands of jobs.”
We need to maintain and grow connections between the U.S. and China. Chinese immigrants and students are not just a nice thing, they improve relations and the immigrants make America stronger diplomatically and economically.
“President Donald Trump on Thursday signed his plan for reciprocal tariffs but delayed their implementation as his administration launches negotiations on a one-by-one basis with nations that could be impacted.
“The Plan shall ensure comprehensive fairness and balance across the international trading system,” read the memorandum signed by Trump.
The studies of each country could be completed by April 1, incoming Commerce Secretary Howard Lutnick said Thursday while standing at Trump’s side, adding that then “we’ll hand the president the opportunity” to start implementing them as soon as on April 2.”
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“Nations from India to Brazil to South Korea have long charged higher average duties on various goods and will clearly be in the middle of coming talks.
Trump’s memo Thursday outlined how non-tariff barriers, such as the VAT, would also be subject to reciprocity.
“For purposes of this United States Policy, we will consider Countries that use the VAT System, which is far more punitive than a Tariff, to be similar to that of a Tariff,” Trump posted to Truth Social on Thursday.
That issue is likely to be a sizable stumbling block in relations with the European Union.”
LC: VATs are applied to domestic products and imports, so treating a VAT like an import tariff that is just applied to the import, makes no sense.
“The high tariffs that America imposed during the late 19th century did not make America rich and did not make American manufacturing strong. It’s also absurd to claim that the country was at its wealthiest in an era when most people did not have access to indoor plumbing, electricity, or modern medical care—and when the average person was, objectively, much poorer.”
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“If tariffs are as great as Trump says they are, he should be implementing them no matter what the leaders of any other silly little countries say or do. We can tax our way to prosperity, Trump claims, but we’ll just…not do that, I guess?
That’s the problem with Trump’s theory about tariffs. Either tariffs are an inherently good and prosperity-generating policy that enriches America, or they are a threat to get other countries to do as Trump says. Both things can’t be true.”
“Trump tore up the North American trade deal that he’d signed (and praised as the “best agreement we’ve ever made”) just five years ago. He sent the stock market tumbling, forced the American automotive industry and other manufacturers to beg for mercy, and antagonized two of America’s biggest trading partners and allies. And after all that, he got virtually nothing in return.
Indeed, Canada’s and Mexico’s governments may have gotten more. Their leaders learned that Trump sees 10,000 as a big and significant number and that they can appease his tariff fever by promising to just keep doing what they already do—as long as they make it sound like he’s convinced them to change course.”
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“when Trump was asked directly by reporters on Saturday if there was anything Canada could do to avoid the tariffs, he said “nothing.” In various social media posts, Trump claimed first that the tariffs were intended to stop fentanyl from coming across the border And then, a day later, said they were meant to compel Canada to join the United States. Vice President J.D. Vance tried his hand at putting some random meats on this tangle of bones Sunday night, writing on X that Canada wasn’t keeping up with its NATO obligations.”
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“The leaders of Mexico and Canada effectively called the president’s bluff that there was nothing they could do to avoid tariffs. Facing the reality that tariffs would cause serious pain for American businesses—something that he even admitted last weekend (maybe he’s learning?)—Trump retreated, leaving the United States–Mexico–Canada Agreement in tatters and the relationship between America and two of its key allies strained.
We should be glad that Trump safely found an off-ramp after steering the United States recklessly into a potentially ugly situation, and we can hope that he did not cause too much long-term damage while getting there.”
“the U.S. is heavily reliant on Canadian crude oil to make liquid fuels and other petroleum products. Most U.S. refineries were built in the 1970s to accommodate heavy oil from the Middle East and Canada. This was well before the American shale boom, which brought lighter-grade oil to the market. In 2023, nearly 60 percent of crude imports came from Canada and July 2024 saw a record 4.3 million barrels of oil per day imported from the country.
“Canada is by far our largest supplier, and we build refineries specifically to refine heavier Canadian crude,” explains Nick Loris, the executive vice president of policy at C3 Solutions, a free market energy think tank. “Depending on the tariff rate and how long they’re in place, gas prices could rise anywhere from 10-30 cents per gallon, with the Midwest and the Rocky Mountain Region getting hit the hardest,” Loris tells Reason.”
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“tariffs could also harm American nuclear power. Despite generating the most nuclear energy in the world, the U.S. relies on other nations for uranium to fuel its fleet. Canada is the largest supplier of raw uranium (27 percent of imports in 2022), followed by Kazakhstan (25 percent) and Russia (12 percent), the latter of which the U.S. depends on for roughly a quarter of its uranium enrichment needs.
With last year’s passage of a bill to ban imports of Russian uranium signed into law, Canada is primed to play an increasingly important role in America’s uranium supply. Tariffs would threaten this and could increase fuel costs for American nuclear power producers”