Aluminum vs steel

This is a major vindication of the Commerce Secretary Wilbur Ross’s claim that the steel and aluminum tariffs would not hurt consumers. Although many big  corporations reacted to the announcement of tariffs with warnings that consumers would be forced to pay higher prices, the evidence so far is that corporations have been forced to absorb the costs of tariffs rather than passing them on. Instead of squeezing the pocketbooks of American households, the tariffs are putting pressure on record-high corporate profits. … [Read more...] about Wilbur Ross Vindicated by Campbell Soup Disaster

In earlier reports, it looks as if bicycles might be the exception. But bicycle prices have failed to move up by much. The China tariff on bicycles rose from 10 percent to 25 percent in May. That is on top of the pre-existing bicycle tariff that has been in place since imposed by President John F. Kennedy, recently around 11 percent (down from Kennedy’s original 25 percent). The price of bicycles and sports vehicles jumped 3 percent higher in September and rose another 0.5 percent in October. In November, prices rose another 1.2 percent, pushing the year-over-year price gain to 8.9 percent. But that big price jump has now reversed. Prices fell three-tenths of a percentage point in December and are up just 1.7 percent compared with a year ago, prior to the new tariffs. … [Read more...] about Latest CPI Data Show Tariffs Still Are Not Hurting U.S. Consumers

Thirty miles west of Cleveland along the Lake Erie shoreline sits a town named Lorain, Ohio. Famous for being the birthplace of Toni Morrison, Lorain was once a bustling steel town that drew people from all over the country for manufacturing work. Even the high school football team was named “The Steelmen.” But today, like many Rust Belt towns, Lorain shows signs of decay: ramshackle houses, vacant buildings covered in graffiti, and abandoned plants and factories — lots of them. … [Read more...] about Here’s A Look At One Ohio Town Where The Manufacturing Jobs Are Coming Back

Trump’s first 14 months produced plenty of evidence to support this hypothesis. But the past few weeks have fatally undermined it. The White House isn’t preparing for face-to-face talks with North Korea because James Mattis decided that was a good idea; or drafting $60 billion worth of tariffs against China because that’s what the GOP Establishment wanted. These things are happening solely because Trump decided to make them happen. That maniac on Twitter really is the president of the United States. And as more and more “adults” exit the West Wing — and it becomes more and more difficult to find normal, competent people willing to take their places — the chances of a return to last year’s “normalcy” grow ever more remote. … [Read more...] about Donald Trump Has Never Been More Dangerous Than He Is Now

The two sides are keeping substantial tariffs in place. About two-thirds of all US imports from China — roughly $370 billion worth — will still be covered by tariffs after the deal is signed, according to a December analysis from the Peterson Institute for International Economics. More than half of US exports to China would also still be subject to retaliatory tariffs, the institute said. … [Read more...] about A world trade war is brewing. The US-China deal won’t stop it