History shows that the "war" brings us trade will give a bad ending
Week fifth (1 / 3), President Donald Trump blew up the risk of a trade war in the global 25% and 10% tax, the United States announced on imports of steel and aluminum. According to the White House adviser trade tax, this will be the eternal no state immunity. The goal is to protect the metal manufacturer in water.
This allows Americans to remember the story in the past when the president of the United States who use tariffs to protect domestic industry. However, history also shows that this method will bring the United States and pain than Cyril. In the current social background, analysis and forecasting system will make the negative trade war is more serious than before.
The tax is a frequently used tool in a trade war
Most of the time the Lyndon Johnson president, trying to use various measures to reduce trade restrictions on imports, domestic production industry support. However, most of the people including your predecessor, trump Johnson, Richard Nixon and Ronald Regan, the use of quota (quota) in order to protect them. For example, in 1969 Johnson import quotas, the largest 5,75 million tons of iron and steel.
Later, Jimmy Carter had by limiting the steel import floor price set to restrict steel imports. Although this is not a tax, it still shows effective in foreign steelmakers were forced to price must be maintained at a certain level, the reason cannot sell so cheap competitors not fair, American Iron and steel production.
Recently, Obama will also be special metal parts of high taxes for cars in an effort to restrict imports from Chinese.
However, similar behavior, the tax policy of President trump by former president George W. Bush in 2002. The United States has passed laws to 30% tax imports from 8% in the iron and steel products, more than a year since, this policy was abolished by the intense reaction, these systems from the world economic burden.
At the same time, aluminum measures to restrict imports less, partly because of the recent price cheap imports of the aluminum new level, the influence of American enterprises. According to the American Association of aluminum, aluminum consumption is made in the USA, the domestic manufacturers have been from 2004 levels reduced to just 84% in 2016 69%. At the same time, the increase in imports of aluminum market Chinese from 2004 to 0% in 2016 22%.
These figures make the aluminum company urge the government to act immediately to protect trade.
What did it mean for the United States?
Most of the report shows that the tax measures will only very few benefits to the U.S. economy and steel industry said in private. In fact, many studies show that even if these measures to restrict the import of steel also hurt the economy.
The floor price Carter cannot prevent the U.S. steel industry workers slope but caused serious contradictions and allies such as Japan or Europe policy, Johnson and Reagan can't make steel quota application grandfather victory.
The research shows that at the microeconomic level, through the import of iron and aluminum in the tax, the price will increase the cost of production, resulting in many other sectors of the capital, by two metal increases. For example, the beer industry warned that if the tax hit aluminum 10% increase in the cost of imports, manufacturers have a beer and alcoholic beverages will be 256,3 million yuan to increase by, leading to higher prices, consumers lose.
The impact of the labor market. It is estimated that the tax rate applicable to the time of Bush
This allows Americans to remember the story in the past when the president of the United States who use tariffs to protect domestic industry. However, history also shows that this method will bring the United States and pain than Cyril. In the current social background, analysis and forecasting system will make the negative trade war is more serious than before.
The tax is a frequently used tool in a trade war
Most of the time the Lyndon Johnson president, trying to use various measures to reduce trade restrictions on imports, domestic production industry support. However, most of the people including your predecessor, trump Johnson, Richard Nixon and Ronald Regan, the use of quota (quota) in order to protect them. For example, in 1969 Johnson import quotas, the largest 5,75 million tons of iron and steel.
Later, Jimmy Carter had by limiting the steel import floor price set to restrict steel imports. Although this is not a tax, it still shows effective in foreign steelmakers were forced to price must be maintained at a certain level, the reason cannot sell so cheap competitors not fair, American Iron and steel production.
Recently, Obama will also be special metal parts of high taxes for cars in an effort to restrict imports from Chinese.
However, similar behavior, the tax policy of President trump by former president George W. Bush in 2002. The United States has passed laws to 30% tax imports from 8% in the iron and steel products, more than a year since, this policy was abolished by the intense reaction, these systems from the world economic burden.
At the same time, aluminum measures to restrict imports less, partly because of the recent price cheap imports of the aluminum new level, the influence of American enterprises. According to the American Association of aluminum, aluminum consumption is made in the USA, the domestic manufacturers have been from 2004 levels reduced to just 84% in 2016 69%. At the same time, the increase in imports of aluminum market Chinese from 2004 to 0% in 2016 22%.
These figures make the aluminum company urge the government to act immediately to protect trade.
What did it mean for the United States?
Most of the report shows that the tax measures will only very few benefits to the U.S. economy and steel industry said in private. In fact, many studies show that even if these measures to restrict the import of steel also hurt the economy.
The floor price Carter cannot prevent the U.S. steel industry workers slope but caused serious contradictions and allies such as Japan or Europe policy, Johnson and Reagan can't make steel quota application grandfather victory.
The research shows that at the microeconomic level, through the import of iron and aluminum in the tax, the price will increase the cost of production, resulting in many other sectors of the capital, by two metal increases. For example, the beer industry warned that if the tax hit aluminum 10% increase in the cost of imports, manufacturers have a beer and alcoholic beverages will be 256,3 million yuan to increase by, leading to higher prices, consumers lose.
The impact of the labor market. It is estimated that the tax rate applicable to the time of Bush
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