Heritage Research Associate Tori Whiting released the following statement Thursday after an announcement by the White House that the Trump administration is seriously considering applying tariffs to steel and aluminum imports:

“President Trump's announcement today of his intention to impose tariffs on steel and aluminum imports is likely to have serious negative consequences for American workers and the American economy. Restricting imports under the guise of national security will increase prices of these basic commodities for numerous U.S. manufacturers and consumers, and put millions of American jobs at risk. It is not in the interest of the U.S. economy, or the ‘forgotten men and women’ of America, to restrict these vital imports.”

Negative impacts of steel/aluminum tariffs:

 

• Higher prices: the cost of imported steel and aluminum will dramatically increase, leading to higher prices on raw steel, and thus, finished products that hit the market.
• Lost jobs: In 2002, following similar tariffs under the Bush administration, 200,000 workers in steel-using industries lost their jobs. Seventeen million Americans currently hold jobs in such industries.
• Trade retaliation: Tariffs invariably lead to retaliation by affected trade partners, making raw materials and every-day consumer items more expensive here at home.
• Damaged alliances: America’s top sources for imported steel include Canada, Brazil, South Korea, Mexico, Turkey, Japan, and Germany. The United States has collective defense partnerships with these nations, and tariffs will hurt them.

 

Read Tori’s full report, “President Should Reject Flawed Commerce Report on Steel Tariffs,” here.