Stansberry Research pointed out the negative ramifications of the tariffs proposed by President Trump. If the 25% tariff on steel and the 15% tariff o aluminum goes through, Americans could see every dime they received in tax breaks disappear. The portion of our nation that Trump is attempting to protect is the Steel industry, which owes most of its job losses to changing technology, not outsourcing.
In 1953, the peak of the steel industry in the U.S., when 650,000 steel workers were employed based on Stansberry Research. In both the steel and the aluminum industries there are about 300,000 workers. That’s an 80% reduction in the workforce and less than 1% of the U.S. population. Still, it should be noted that the amount of steel production has only dropped by less than 50%. Clearly, technology is part of the reason less people work in steel.
If Trump is able to follow through on these tariffs, consumers should plan on paying higher prices for goods. China and the European Union have made proposals of tariffs on American goods in response to the U.S. tariffs. First of all U.S. tariffs will drive the price of imported goods, like TV’s, cell phones, washers and dryers as well as other appliances up. Plus, every country will place tariffs on American goods, driving the price of U.S. goods up in foreign countries. In general, it doesn’t look like a winning proposition according to Stansberry Research.
First of all the costs of steel and aluminum will go up and manufacturers will be forced to pass those costs on to the consumer. The price of goods go up. Second, the countries with tariffs on their goods will place tariffs on U.S. goods: soybeans of which China buys 60% of U.S. production; denim jeans, makeup, bourbon whiskey, corn, motorbikes, shirts and pleasure boats. Essentially, U.S. manufacturers could be hit hard.
Stansberry Research also warns of continued stock market volatility as long as tariffs are being considered. Stansberry Research provides readers with pivotal investment information so readers can confidently create investment decisions. They offer appropriate advice for the entry level to the experienced investor offering trading options that are designed to amplify returns.