Protective actions for the U.S. market from trump's meaningless
According to the publication «The Economist» has a chance not the most positive consequences of the actions of trump. In particular, in its efforts to protect the American steel industry. It will be bad if the plans of Donald trump will be introduced and will create a «punishing tariffs» on imported steel. The consequences of such innovations, according to the publishers, can be quite disastrous.
The authors who wrote the article, I believe that the United States economy is not too good from the jump in steel prices. And this, in turn, will provoke reciprocal measures, bearing a loss of a large number of jobs. This happens when the problem continued the problem of oversupply of the metal rolled.
The article said that cheap steel is good for many producers and buyers of goods. The spike up will be a blow to companies that actively use metal. This automobile, construction and many businesses. In addition, a significant problem for the preservation of jobs in the field comes not from sales. Technology works the finished product change usovershenstvuetsya, and do not require people.
The Economist also indicated the research of the Institute of metals in America. According to them, productivity of labour resources in the steel industry of the United States grew. Compared with almost forty years ago, the growth was five times. Steelmakers continue to improve the efficiency of the methods of smelting mainly reducing the workforce. And duties on the importation of products can not compensate the lost in the technological progress jobs.
Will also remain the key problem of the global steel market. It is associated with the overproduction in the steel plants in China. Existing measures for the protection of trade redirect Chinese product to other markets. And on the American markets it is present in small quantities. Last year its number amounted to only four percent of all imported to America began. At the same time from Canada, Mexico and the EU imported 27, 27 and 23 percent, respectively.
If the main purpose Donaly trump is a large-scale war in trade with China, he is mistaken. It affected key will turn the metallurgists of the USA and not from China. If the President trump wants to improve the steel in America, he will focus on free trade. The Economist concludes that it would be the best outcome.