One year into president Donald Trump’s trade war and tariffs on metals, all data points to bad news. There are more losers than winners in this economic war, and the trade deficit has widened substantially as opposed to leveling out, as promised.
Manufacturing activity in the United States has dropped a massive amount since August, and the tariffs imposed on metals has played a part in the decline. A year ago, when Trump imposed the tariffs (taxes) on imported steel and aluminum, many cheered him on. However, warnings from the beginning were that costs would rise, and Americans would bear the cost of tariffs, not the foreign companies Trump declared war on.
https://www.shtfplan.com/headline-news/more-trade-war-failures-us-trade-deficit-hits-highest-level-in-a-decade_12062018
Although U.S. steelmakers Nucor Corp. and United States Steel Corp. saw significant profit gains in 2018, the manufacturers that buy the metal, such as Caterpillar Inc., a top three U.S. exporter, have said that the tariffs have hurt profits, spurred layoffs, and forced some companies to rework supply chains in ways that undercut use of American workers. Caterpillar, the world’s biggest machinery producer, said it may have lost more than $100 million in 2018 as a result of the tariffs, while beer-maker MillerCoors has said the aluminum tariffs likely added more than $40 million in costs to its operation.
Mid-Continent Steel and Wire Inc., a maker of nails, has said it’s cutting jobs to offset its added costs from the tariffs, while PanelClaw Inc. and Nuance Energy, suppliers of steel racks for solar panels, say they’re now importing some racks from abroad rather than building them with American workers at home. –Bloomberg
There is one key indicator, however, that shouldn’t be ignored. According to a report by Bloomberg, U.S. manufacturing PMI, an indicator of economic health for the sector, has dropped steadily since August, and in February sat at its lowest level since Trump won the election. The U.S. manufacturing sector showed “a lot of momentum coming out of 2017 into 2018,” said John Mothersole, an IHS Markit analyst in Washington. “But all that momentum evaporated across the course of the year.”
Mothersole viewed the tariffs in the same manner as we, at SHTFPlan did…it’s simply a tax on U.S. manufacturing, and will manifest as a cost increase for the average American. He sees taxation as a drag on the U.S. economy. When money is taken from anyone or any business for any reason, it hampers economic growth and stability and all taxation does this.
https://www.shtfplan.com/headline-news/trade-war-continues-to-cause-severe-pain-as-bankruptcies-surge_03192019
Mid Continute Steel and Wire is a subsidiary of Deacero out of MEXICO!
Fer fuck sakes people connect the damn dots.
More SHTF ECONOMICS that don’t compute. Go to youtube My Peeps Google “Chinese Economy” & “Chinese Debt”. China is about to implode: likely sometime this year as the Chinese real estate market is in FREEFALL !!!
As far as US Manufacturing is concerned, YES its declining BECAUSE car & truck sales have tanked. Production of vehicles reached all time highs for several years. Cars & trucks are stacked up, LITTERING parking lots & airport runways all over the world; including in the USA !!! I told this community a year ago that inventories would rise at the end of the business cycle. We are there!!!
After an extended business cycle, the longest in history, the durable goods market (manufacturing) is saturated (like credit). It is disingenuous, AT BEST, to ascribe the economic conditions at the natural end of the business cycle, like slumping consumer demand, lower production requirements as inventory backs up, and layoffs to TRUMP
TARIFFS.
I CALL BULLSHIT !!! 🙂
Agreed…This site is just fear porn anymore..They use no logic or common sense..What should Trump do,just go on as before??Allow more and more manufacturing jobs to flee??To allow countries to tax American goods but allow “free trade” on foreign..This guy is an idiot..I have been an iron worker{fabrication} for 30 years..The last two have been better than the last 8 combined…
More data from Michael Snyder posted today March 27th which documents what I told this community days ago. Don’t believe the Globalists when they lie about TARIFFS.
TRUMP TARIFFS are good for Americans. Very good !!! Not so good for Globalists. 🙂
https://beforeitsnews.com/v3/economy/2019/2968984.html
We should not bend to China no matter what. We should look to other markets in smaller countries who would welcome the USA’s business partnerships. We all know anyway that an economic downfall is planned for this country by TPTB at anytime. We cannot bend to these corrupt forces that are out to destroy the USA and make slaves out of its people. Bite the bullet and stand united against evil.
Agreed. This is short term pain and once the “trade war” is done, we will emerge in a stronger position. That or we can keep giving up billions per year to China because, you know, cheaper is better.
China began waging this war in the 1980’s. This is simply the latest phase.
This is also has errors/exaggerations (starting with the fact that the tariffs didn’t start until mid summer of last year so we are not “one year into…” it)
The earlier shtf article referenced above, midway down the page, I commented what what a sham that analysis was as well and posted facts to back it up. I’m not going to bother here, because good news wont prompt anyone to click an advert or buy a copy of one of Daisy’s books. (fyi, not dissing the book, dissing the marketing.)
As Norrack said, its time to bite the bullet and take a stand.
It another economic DISASTER! story. Which of course flies in the face of observable reality.
Methinks Mac is suffering from stage 4 Trump Derangement Syndrome.
Will tariffs fix this? I was looking for an auto made with US materials. Here’s what I found.
If you want an automobile made with domestic parts, buy a Toyota, a Honda, or a Kia. The top selling US nameplate, Ford Fusion, contains 48.5% US content, The Camry has 78.5%, the Accord 76% and the Kia Optima has 68%. Why do foreign name brands use more US content than domestic ones?
SAD
KOGOD School of Business study
Federal bump stock ban went into effect today and no one is even talking about it.
because most people dont have them, a few who do will comply without complaint, and the rest who do dont think the order is constitutional anyway and wont comply.
its sort of a footnote in a long history of gun control going back to the 30’s.
I’d be more concerned with getting the GCA overturned
Bump stocks are a cutesy gimmick that most who buy them play with a few times and then put it in the back of the garage somewhere and forget about it. This was a non-issue from the get go. Not many people want bump stocks in the first place and once many people that get them now find they are not all they are “bumped” up to be! When do you need a full auto weapon? WATCH THE NEW ZEALAND VIDEO AND WATCH HOW EFFECTIVE A PLAIN SEMI IS!
JAS I agree, tens of thousands of Americans just became Felons and not a peep. Then all I hear is, well I don’t have one or what good are they, or they are just a gimmick and who really needs a spray and pray. What you see is what you’ll get when they ban all semi-autos, it gets so tiring hear all these tough guys talking about what they’ll do, and when Big-Brother acts, all we hear is the sound of silence. I can’t believe there is not article on this site about this act, go to Survival.Blog. Wasn’t it Obama that said ‘sign of the pen,law of the land’ seems this is what Trump and the BATF just did. Cool Huh! Trekker Out
Make that “Stroke of the Pen Law of the land” SurvivalBlog took notice. I passed that article along to 40 people on my email list. Don’t forget to put your name in every time or you’ll be Anonymous . Trekker Out
You don’t have to buy a bump stock. You can bump fire any AK. That ban means nothing.
Bump stocks are junk. My finger is faster. I don’t see how banning them is infringing on your right. You shouldn’t be upset about it. full auto is a waste of ammo. It is not gun control.
I think I have a grasp on the concept that Government is stupid, corrupt, and inefficient at spending Tax Money.
When the Gov takes in taxes out of the General Economy, it is not static and the money doesn’t disappear, they still spend it on something.
Even if they buy the proverbial, gold plated toilet seats somebody in the Private Sector benefits either as a manufacturer, assembler, distributor, or importer.
I’d appreciate someone schooled in economics to teach me (or point me) a little about why it is bad for the Gov to spend the money rather than you and me (beyond the stupidity, inefficiency, and corruption.)
I feel in my bones that Government spending through Taxation at some point beyond the necessities of running the Gov for its major mission of National Security is Evil and Immoral.
They have to take it from us by the threat of Force.
But beyond the morality argument, ‘Why is is it Bad Economics for THEM to spend it rather than US ?’
Thanks,
<bb
How much national security $ is allotted for Israel
All of it. The white house is now full of jues and they are all there to support the home land.
because the government spending isn’t limited to the USA. Out government wastes our money on things like the UN , Foreign aid and trying to be the world police. If the lions share was spent right here in the USA instead of other countries it would stay here and greatly benefit the US citizens.
The free trade agreements made losers out of the production workers in the USA. The free trade isn’t the only thing that is effecting the markets. The Chinese where scrapping new appliances like air conditioners to get the raw materials. long before the trade tariffs where put in place. It got to where no one wanted to buy the inferior Chinese window air cond units. Even Wal Mart didn’t want them. How come no mention of the ZERO evidence of Trump colluding with Russia? I dare you to write a factual article about the end of the Muller witch hunt. Not a bullshit article about the tariffs.
Just so long as ISRAEL is cared for …. Putting ISRAEL First. Trump is too busy with Israel to worry about America.
I didn’t need $35 million plus to determine of Trump is colluding with a foreign nation.
Trump is colluding with Israel. That is my report.
Charge: $100.00
Thankee
Consider this . .. the Dual-citizen Jews in Congress & ACLU etc block Our wall …. and Trump doesn’t have the testicles to say Our Embassy STAYS PUT, You do not get the Golan Heights, give them back to Syria, Treat the Palestinians FAIR, and no more WELFARE to Israel, it all goes to the Palestinians …… no, PUSSY BITCH Trump just gives them everything they ever wanted and WE DO NOT GET A WALL even though WE PAY for theirs . …. yes, F— YOU Trump.
100,000 Invaders in during JUST the 1st quarter … The Jew Kalgeri Plan moves ahead and Trump helps them.
I am so finished with that P.O.S. I might catch T.D.S.
International traders of plate steel estimate Chinese product was priced at 60% of its true cost of production.
For US manufacturers of durable goods, steel costs have not risen anywhere near as much as implied by the tariffs. China is absorbing as much of the hit as they can.
As for aluminum, remember that enormous pile of Chinese ingots stacked in the Mexican desert? China decided to ship it all to Vietnam.
The tariffs are working as expected. We need the basic industry here in the US for national defense. It’s disturbing to see a Ben Shapiro talking point promoted at this blog, of all places.
This was so obvious from Day 1:
https://buelahman.wordpress.com/2018/03/14/trump-tariffs-the-war-drums-are-beating/
so who do you believe? zerohedge.com/news/2019-03-27/us-trade-deficit-shrinks-most-10-years-china-gap-shrinks
I voted republican last time… NEVER AGAIN!! He’s destroying our economy, he’s destroying the environment– taking down the laws to protect clean air and water. The only people he cut taxes for was the elites and the corporations… (He INCREASED taxes for the middle class!! My daughter is furious because she has to pay about $1,000 in taxes — she’s a nurse. and her friend has to pay $3,000 in taxes– also in the medical profession. the last few years, my daughter got a refund– no taxes!)…. she makes good money but about 40% goes in taxes!!)– that is what the republicans brought us– MORE FOR THE ELITE AND LESS FOR EVERYONE ELSE!!
PLUS– Trump is trying to destroy the second amendment instead of protecting it! He wants to get the guns first and ask questions/make laws later— WHAT IS THERE TO LIKE ABOUT HIM??? HE LIED ABOUT EVERYTHING!!