Steel Tariffs in the US

The Trump administration has suggested it will impose tariffs on steel to save or revive the steel producing industry.

The steel industry in the US employs 149k workers but the steel consuming industry employs 6 million workers. So, there is a bigger positive impact on the 149k workers, even if temporary, then on the 6 million workers. This is an old political trick: concentrate the benefits on a few and disperse the relatively lower amount of pain on the many. The benefits to these workers and the firms will be fleeting because the higher cost will reduce quantity demanded for their products.

This video continues to explain why this is a dumb idea.


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