It was frustrating and depressing to watch President Donald Trump recently announce misguided import taxes on steel and aluminum. Aside from the bad economics behind the decision, the saddest part of the pronouncement was to hear the president promise steel- and aluminum-workers standing behind him, “We’re going to have a lot of great jobs … coming back into our country.” I wouldn’t count on it.
Tariffs are import taxes. Their immediate effect will be to jack up the prices of the metals in the United States. That sounds like good news to the 140,000 steelworkers and 28,000 aluminum-workers. But it’s bad news for the more than 6 million people who work in the two metal-consuming industries. Their companies will now face higher costs, which could lead to layoffs and factories moving abroad, writes Veronique de Rugy in her latest column for Reason.
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