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What Trump’s Tariffs Mean For You

Containers+loading+by+crane+in+the+morning%2C+Trade+Port%2C+Shipping.

Containers loading by crane in the morning, Trade Port, Shipping.

By Ethan Winchester

Since the beginning of President Donald Trump’s campaign, one of his major goals was to increase jobs and improve the economy. He blamed our loss of jobs and slowing of the economy on one country, China. It was clear he would place trade restrictions on China to help stimulate American business.

On March 1, President Trump placed a tariff of 25 percent on all imports of steel and a 10 percent levy on aluminum.

“We’re going to build our steel industry back, and we’re going to build our aluminum industry back,” President Trump said when announcing the tariff. The tariffs were said to go into effect on March 23.

What would be the effects of these tariffs? Prices for products that use aluminum such as, soda cans or foils, would become more expensive. Other items manufactured with steel are expected to rise in price. For example, cars, appliances and building materials to name a few.

The response to this decision has been mainly negative. Most of the U.S.’s trading partners have been angered or are concerned about future U.S. relations. It could affect major trading partners like: South Korea, China, Japan, Germany, Turkey and Brazil. Many foreign and domestic leaders have warned of how this tariff could start a trade war. If it happens, this trade war could escalate outside the steel and aluminum industries.

At home, the response to the President’s decision has also received a lot of backlash. Members of both the Democrats and Republicans have been critical of the President’s tariff. Even over 100 Republican lawmakers have sent letters to President Trump asking to stop the tariff. There was also backlash in the White house as well, top economic adviser Gary Cohn resigned after the tariffs were announced.

“It has been an honor to serve my country and enact pro-growth economic policies to benefit the American people, in particular the passage of historic tax reform,” Economic Adviser Cohn said in a statement. “I am grateful to the president for giving me this opportunity and wish him and the administration great success in the future.” 

The future of American economic trade, at home and abroad is in a dangerous place. It’s unclear of the extent that the consequences will be if this tariff is continued to be pushed into effect. Countries like China, have already announced counter-tariffs that would take effect when the trade taxes are adopted.

For More Information:

Vox.com

CNN.com

Reuters.com