Thread: President Trump is keeping his promise to defend our steel and aluminum industries

President Trump is keeping his promise to defend our steel and aluminum industries

Peter Navarro, Opinion contributor
Published 3:15 a.m. ET March 12, 2018

The rational course for our allies and trading partners is not escalation. It's to recognize America’s sovereign right to defend two vital industries.

“When it comes to a time when our country can’t make aluminum and steel ... you almost don’t have much of a country.” This warning from President Trump perfectly encapsulates the national security rationale for imposing tariffs on steel and aluminum, two of the most important industries for the health and stability of the American manufacturing and defense industrial base.

Consider the plight of our once-proud primary aluminum industry — now nearly on its death bed. We need aluminum to build everything from the M2 Bradley fighting vehicle and F-35 Joint Strike Fighter to the Littoral Combat Ship and the Tomahawk missile. We also require aluminum for critical infrastructure projects, from the electric grid and transportation projects to water and sewer treatment plants. As the primary aluminum sector has shrunk dramatically, we have lost high-skilled jobs and tax revenues, while in 2016 our total trade deficit in aluminum products alone was $7.2 billion.

In 2000, America was the world’s largest aluminum producer, but today its share has fallen to 1.4% of the world market while China’s share has risen from 11% in 2000 to 54%.

In 2013, U.S. production was about 2 million metric tons of the roughly 4.5 million metric tons we consumed. According to the Department of Commerce, “Since 2012, six smelters with a combined 3,500 workers have been permanently shut down, totaling 1.13 million metric tons in lost production capacity per year.” Today, only five smelters remain, only two are at full capacity, and only one produces the high-purity aluminum we need for our defense needs.

If we lose that high-purity aluminum production, we will have to depend on others to meet our military’s needs. Absent the 10% tariffs on aluminum that Trump has ordered, we could well lose the rest of our aluminum industry.

In opposing the president’s tariffs on aluminum, some have raised concerns about the effect on downstream industries reliant on aluminum and steel.

A 10% tariff on aluminum will raise the cost of a six-pack of beer or soda by about two cents. At the other end of the spectrum, a Boeing 777 jet, which requires dozens of tons of aluminum, costs about $320 million and the added cost of the aluminum tariff is a mere $20,000 — less than one-hundredth of 1%. These relatively small costs are necessary to protect national security.

On the benefit side of the equation, Trump’s tariffs work for working Americans. In January, the administration imposed tariffs of up to30% on solar panels and up to 50% on washing machines. Many tariff skeptics criticized this presidential action, but already this nation has had an influx of announcements of new investments to build factories that will make American solar panels and washing machines with American hands and with American materials.

Critics of the Trump tariffs also warn of a trade war. This is a false narrative. America is a free trading nation with among the lowest combinations of tariffs and non-tariff barriers of its major trading partners. Fair and reciprocal trade and a secure nation is all we seek. The rational course for our allies and trading partners is to recognize America’s sovereign right to defend two pillar industries of our economy at a critical juncture. Other countries should work with us to combat the unfair trade practices that have demolished our industries. Escalation would be counterproductive.

At the end of the day, many of those who are coming out to criticize this president’s trade actions are those who criticized his economic policies during the election campaign. This trade agenda, including the promise of tariffs on aluminum and steel, is the same plan he promised to the people in Ohio, Pennsylvania and North Carolina — the people who make things with their hands, who do it honestly, and who have been hammered by unfair competition and import surges for decades.

For years, politicians in Washington have propped up unfair trade deals and opposed actions such as the one the president took on Thursday. But now, because of a courageous president who keeps his campaign promises, that time has come to an end, and America’s national security will be all the stronger for it.

Peter Navarro is assistant to the president and director of the White House National Trade Council.

https://www.usatoday.com/story/opini...umn/414720002/

How can anyone not see what "free trade" has done to our country? It has to be stopped and these terrible trade deals fixed. Trump is on it, Trump's got this, and he will fix it.

There should have been no exceptions, not to Canada, Mexico, or anyone else. Being in negotiations on NAFTA is not a viable excuse to exempt Mexico and Canada, especially considering most of the steel and aluminum is coming from China via Canada. Showing you really mean business would have meant installing the tariffs now and negotiating from a position of strength. Instead of just holding the tariffs over their head, we should have shown we mean business! Just my opinion.

I say end NAFTA now and seek out individual trade policies according to our specific needs. Fair trade, not free trade!

The goal of the whole tariff exercise is to increase US production and create new jobs, not be a reason to move more industry out of the country which would be the result of what you're proposing. The exemptions allow the time needed to open new plants and expand domestic lines to meet the need of our own industries. Until that expanded production comes on line, the tariffs just hurt our own businesses. Trump isn't a big gorilla beating on his chest, he's a very detailed, meticulous fixer of our economy.

Originally Posted by Judy

The goal of the whole tariff exercise is to increase US production and create new jobs, not be a reason to move more industry out of the country which would be the result of what you're proposing. The exemptions allow the time needed to open new plants and expand domestic lines to meet the need of our own industries. Until that expanded production comes on line, the tariffs just hurt our own businesses. Trump isn't a big gorilla beating on his chest, he's a very detailed, meticulous fixer of our economy.

Wow, what a load. Installing the tariffs on Canada now would have sent a loud message to China and would have told Canada it's time to sh@$ or get off the pot!

Canada doesn't pay the tariff, our companies who buy the aluminum and steel from Canada pay the tariff.

Originally Posted by Judy

Canada doesn't pay the tariff, our companies who buy the aluminum and steel from Canada pay the tariff.

Imposing the tariffs will force American buyers to purchase American steel!

Originally Posted by MW

Imposing the tariffs will force American buyers to purchase American steel!

We have to rebuild and reopen the steel and aluminum factories first so our companies have steel and aluminum to sell. We don't have enough now to supply the market, we have to bring the production on line. Takes months for some, years for others.