It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Trump steel tariffs bring job losses to swing state Michigan

page: 1
13

log in

join
share:

posted on Oct, 12 2020 @ 04:58 PM
link   
I've put this in mud-pit as, inevitably, the discussion will get heated. Things not looking on the up in Michigan:


President Donald Trump promised a new dawn for the struggling U.S. steel industry in 2016, and the lure of new jobs in Midwestern states including Michigan helped him eke out a surprise election win.

Four years later, Great Lakes Works - once among the state’s largest steel plants - has shut down steelmaking operations and put 1,250 workers out of a job. A year before the June layoffs, plant owner United States Steel Corp called off a plan to invest $600 million in upgrades amid deteriorating market conditions.

Trump’s strategy centered on shielding U.S. steel mills from foreign competition with a 25% tariff imposed in March 2018. He also promised to boost steel demand through major investments in roads, bridges and other infrastructure.

But higher steel prices resulting from the tariffs dented demand from the Michigan-based U.S. auto industry and other steel consumers. And the Trump administration has never followed through on an infrastructure plan.

Reuters

In all honesty though, Michigan has been on the down for years now. In my view this stems along the reality of the evolving global market and the unwillingness for Michigan to adapt. It wasn't always going to be the car-maker State, it wasn't always going to hold it's manufacturing. Businesses upped and left because and the State should have learned adapt. I look back to places like Dubai in the ME, moving away from oil and focusing on building a future based on tourism as they recognize it won't be there forever. Regardless, Trump obviously played to the appeal of restoring the way things 'were', set to failure from the get-go.

Further:


While the tariffs failed to boost overall steel employment, economists say they created higher costs for major steel consumers - killing jobs at companies including Detroit-based automakers General Motors Co and Ford Motor Co. Nationally, steel and aluminum tariffs resulted in at least 75,000 job losses in metal-using industries by the end of last year, according to an analysis by Lydia Cox, a Ph.D. candidate in economics at Harvard University, and Kadee Russ, an economics professor at the University of California, Davis. In all, they estimated, the trade war had caused a net loss of 175,000 U.S. manufacturing jobs by mid-2019.


We should have been clued on where this was going when Carrier upped and left after their multi-million dollar tax cut by the government. Time to move forward, and this starts with an infrastructure investment from the government to spark things forward.



posted on Oct, 12 2020 @ 05:06 PM
link   
This is the first post where I cannot argue with you and agree 100%
Factories don't work on scAmazon middlemen profit margins.
20% material hikes are destructive as hell.
I know it costed me 20k on one project alone.
This is covering steel.
You should do one on building materials, lumber tarriffs etc.
1,2,3,400% increase in materials in some cases.

Props


+13 more 
posted on Oct, 12 2020 @ 05:29 PM
link   
a reply to: Southern Guardian

Right, the tyrannical wannabe dictator governor locks down the state for 7 months, but it's Trump's fault jobs aren't recovering.



posted on Oct, 12 2020 @ 05:30 PM
link   

originally posted by: watchitburn
a reply to: Southern Guardian

Right, the tyrannical wannabe dictator governor locks down the state for 7 months, but it's Trump's fault jobs aren't recovering.


How dare you sir.

You and those pesky things called ‘facts’.



posted on Oct, 12 2020 @ 05:34 PM
link   
a reply to: Southern Guardian

I agree with your post. Especially this part...



Time to move forward, and this starts with an infrastructure investment from the government to spark things forward.


Most people from both sides of the isle can agree with this. Right now is a really good time to do this. The economy could use the boost and the infrastructure certainly needs it.



posted on Oct, 12 2020 @ 05:35 PM
link   

originally posted by: watchitburn
a reply to: Southern Guardian

Right, the tyrannical wannabe dictator governor locks down the state for 7 months, but it's Trump's fault jobs aren't recovering.


The entire world locked down. China's lockdown for example was and still is far more aggressive that that of the US:

US could learn more from more restrictive lockdowns in China and abroad

So, unless you're blaming Michigan for not being as agressive as communist regimes during this pandemic, your argument is invalid. Other countries still fairing better, manufacturing wise.



posted on Oct, 12 2020 @ 05:38 PM
link   
a reply to: Southern Guardian

Oh, so at least you're being open about your support for communist dictatorships.


+3 more 
posted on Oct, 12 2020 @ 05:38 PM
link   
Few issues with that article.

First, understanding the rate of slowing for infrastructure projects is notable. Even Whitmer ran on a platform of *fix the damn roads* covid had a massive hand in that as did Michigan's governor. No new contracts means that steel doesn't get produced.

As for the rest of the market, vehicles chiefly, that market suffers under the same constraints. From the raw material all the way to the tooling used is steel and it has been slowed as well.

You can't shut down and keep closed the economy and not expect this kind of hiccup in the pipeline.

Also there's the China steel issue. Its junk. Suppliers and producers of goods don't want it near their tooling or product.

Sincerely
A resident of Michigan with a 25 year career in steel.



posted on Oct, 12 2020 @ 05:41 PM
link   

originally posted by: watchitburn
a reply to: Southern Guardian

Oh, so at least you're being open about your support for communist dictatorships.


Where did I say I supported communist regimes?

I think the point is clear. You complained Michigan's governor is partly to blame for the markedly decline in manufacturing jobs (even though this issue has clearly being on the downward trend well before this pandemic). I simply pointed to the fact Michigan's lockdowns pale in comparison to other lockdowns globally, including China and the EU. By your logic, they should be fairing worse then, right? But this isn't the case.

Are you going to actually address this point, or continue deflecting?



posted on Oct, 12 2020 @ 05:45 PM
link   

originally posted by: Southern Guardian

originally posted by: watchitburn
a reply to: Southern Guardian

Right, the tyrannical wannabe dictator governor locks down the state for 7 months, but it's Trump's fault jobs aren't recovering.


The entire world locked down. China's lockdown for example was and still is far more aggressive that that of the US:

US could learn more from more restrictive lockdowns in China and abroad

So, unless you're blaming Michigan for not being as agressive as communist regimes during this pandemic, your argument is invalid. Other countries still fairing better, manufacturing wise.


Do they need to really BE worse than a certified Communist regime to be just as harmful? Especially in what’s supposed to be a free country?



posted on Oct, 12 2020 @ 05:45 PM
link   
How many jobs were lost in the first place because of free trade?

So much has been neglected over the decades and so much debt has been taken on that the bill will inevitably need to be paid.
It's going to hurt and anyone that blames a politician for the pain caused by another politician isn't paying attention.



posted on Oct, 12 2020 @ 05:59 PM
link   
a reply to: Southern Guardian

This doesn't make sense.

A 25% tariff on foreign steel should not raise the price of a domestic steel producer.

For instance, if both Domestic Steel Inc. and Foreign Steel Co. can produce and sell steel at $1/lb. before tariffs, then after tariffs a US buyer would still have to pay only $1/lb. for Domestic, but $1.25/lb. for Foreign. Domestic should be doing well. Why would anyone buy Foreign when Domestic is cheaper?

The only way Domestic Steel could be tanking would be if Foreign Steel can produce at more than 25% less than Domestic. That is, Domestic sells at $1/lb. while Foreign sells at, say, $0.60/lb. plus tariff making it $.75/lb. for a US buyer. But if that's the case, then Domestic Steel would be out-priced with or without tariffs.

Does Great Lakes Works produce steel, or do they work steel?

If they are making steel, they should be doing fine. Whatever problems they have, I don't think tariffs are the source.

If they are buying steel from Canada or China and making pipe or sheets or whatever, then yes, their costs have gone up. They should be passing that cost along to their consumers, just like every other business.



posted on Oct, 12 2020 @ 06:09 PM
link   
a reply to: VictorVonDoom

It makes sense if you conflate multiple issues and pick/choose the context.



posted on Oct, 12 2020 @ 06:11 PM
link   
Did they even get the water in flint cleaned up yet?
Another Black Nixon environmental win, right?



posted on Oct, 12 2020 @ 06:16 PM
link   
Maybe they will all be happier in Michigan when Kammy Harris installs the Green New Deal and makes them get rid of their new gas cars.



posted on Oct, 12 2020 @ 06:47 PM
link   
a reply to: VictorVonDoom

And that’s not touching on quality, US steel is a far superior grade than what comes out of China
It’s not just “steel”



posted on Oct, 12 2020 @ 07:40 PM
link   

originally posted by: watchitburn
a reply to: Southern Guardian

Right, the tyrannical wannabe dictator governor locks down the state for 7 months, but it's Trump's fault jobs aren't recovering.


I guess you didn’t read the part where it said that 175,000 manufacturing jobs were lost by mid-2019?

That was 6 or 7 months before the pandemic hit.



posted on Oct, 12 2020 @ 08:06 PM
link   
a reply to: Southern Guardian



tariffs dented demand from the Michigan-based U.S. auto industry

United States Steel Corp called off a plan to invest $600 million in upgrades amid deteriorating market conditions.

Last word I hear is that the auto industry is booming.

Trump didn't invent covid-19, China did and I wouldn't be surprised if there isn't a conspiracy between China and the Democratic party to get rid of Trump. They want to be rid of Trump and so does China. Remember Biden's son made millions from China.

They will destroy the nation to stay in power.
edit on 12-10-2020 by CharlesT because: (no reason given)



posted on Oct, 12 2020 @ 09:34 PM
link   
Cleveland Cliffs just bought controling interest in two steel processing companies and is going to start in American steel production again. It sold off most of it's foreign interests in mines and is concentrating on North America again.

The president is not a magician, he can only try his best to keep manufacturing here. Why did the last presidents let us get so dependent on China I could never figure out. A consumer base society has never prospered long in the world, sure it looks like it is getting better, but eventually it collapses. Poor move on the part of our government to allow that to happen, who are we going to blame though, the people who let this start to happen are very old or dead already. Clinton is the one who signed away the most.




top topics



 
13

log in

join