Proposed on June 30, 2017
The White House has officially branded the 29th week of the year “Made in America” week. As a result of this, the administration continues to promote their America first theme by trying to prioritize the importance of American products. According to the Trump team, these policies will not only boost wages but also create a plethora of jobs for manufacturing communities. Trump claims that “We’re going to end up having a level playing field, I don’t want to say anything more than level, but if the playing field were slanted a little more toward us, I would accept that also, okay?”. One of the ways that Trump plans on doing this is placing a tariff on steel. According to Trade Expansion Act of 1962, Section 232, the executive branch has the authority to “place import restrictions or tariffs on steel for national security reasons.”
Many different groups have shown their discontent with this proposal. One of the largest, is the E.U. Reports claim that the E.U. is ready with measures such as taxes on American exports (whiskey, rum, potatoes, tomatoes) to counteract the tariff on steel. As a result, any trade barrier can result in a tit-for-tat war that would not only damage the American economy but the global economy. Brian Coulton, the chief economist at Fitch claimed: “The U.S. and the countries directly targeted by the imposition of punitive U.S. import tariffs would see the largest losses of GDP, but global repercussions would be significant, as business and household confidence falls, asset prices weaken, and trade flows are affected more widely.” In addition, many companies and industries (agricultural, etc.) have shown their dislike for this proposition because they believe prices will increase instead of decrease. They also believe that “The potential for retaliation from these trading partners are very real.” This fear is also not unfounded because the last time there was a tariff placed on steel during the Bush Administration there was a loss of 200,000 jobs in manufacturing.
- Town Hall Project – This project compiles the open-to-the-public events held by state and local representatives. This provides a great opportunity to tell them that this executive order will do more bad than good. You can also dial 1-844-6-RESIST to be redirected to the office of your local member of Congress.
- US Senate – Contact your local representatives to take a stance against this proposed legislation. – https://www.senate.gov/senators/contact/
- US House of Representatives – Contact your local representatives to take a stance against this proposed legislation – http://www.house.gov/representatives/
This brief was compiled by Vaibhav Kumar. If you have comments or want to add the name of your organization to this brief please contact firstname.lastname@example.org.