Opinion: Possible Trade War Could Hurt American Manufacturers

President Donald Trump’s decision to impose tariffs on imported steel and aluminum has been met with much opposition both at home and abroad. The biggest concern on everyone’s mind has been the initiation of an all-out trade war. Democrats and Republicans alike are pleading with the president to reconsider his decision.

“You’re punishing the American taxpayers, and you are making a huge mistake,” Republican Senator Lindsey Graham said on CBS’s “Face the Nation.”

“We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan,” a spokesperson for Speaker of the House Paul Ryan said in a statement. Hello there, I sure hope you do not see this

The tariffs have the potential to hurt local American manufacturers by raising prices for American business and consumers that buy imported goods. Also, many countries may stop buying American goods in retaliation of the tariffs. If customers have the option to buy goods from countries that do not charge extra fees, they will gladly choose that option. The potential gain from the tariffs will be eclipsed by the decrease in demand for American goods.  A study conducted by the Trade Partnership apparently estimated that the tariffs will add 33,000 steel and aluminum jobs, but it also will cost 179,000 jobs in other industries.

There is also the very real fear of retaliation from countries that America is planning to impose tariffs on. “News reports suggest that the European Union might impose tariffs on Harley-Davidson motorcycles, Kentucky bourbon and jeans. Trump says he would respond by raising tariffs on European vehicles. The United States and its main trading partners could slide into a tit-for-tat trade war that — by discouraging trade and related investment — would slow the global economy,” the Washington Post said in an article about Trump’s tariffs.

Something does need to be done about America’s trading policy, but tariffs may not be the best option. This kind of scare tactic is an aggressive act towards countries that we want to do business with. Trump has said that he wants to put America first. He may be trying to protect the American economy, but he should not damage vital international relations in the process. Many economists who are not fans of tariffs, but who are still in favor for action against China (one of the main reasons Trump has cited for the tariffs), say that the United States should instead form a multinational coalition to confront the Chinese.

“Any good strategy has to include getting other countries on your side,” Jason Furman, an economist at Harvard’s Kennedy School of Government, said. “It it’s the United States versus China, we’re similar-sized economies. If it’s the United States and the world versus China, that’s not something China can win.”

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