It’s a no brainer. We must protect industries that are critical to our own survival. We can’t have a nation (or an independent military to protect it) without viable, healthy steel and aluminum industries. If we do nothing now our steel and aluminum industries will simply fold up in the face of unfair pricing and competition from China and other nations.
China does not operate a free capitalist economy. The Chinese political hierarchy controls all aspects of its economy. In order to remain in power it must keep a massive and restive populace fully employed. Too many Chinese unemployed can lead to restiveness, uprisings and even revolution. There lies the reason for the support for the Chinese aluminum and steel industries. Keeping people employed producing steel and aluminum even== when there is no domestic market for the product results in OVERPRODUCTION. When a nation overproduces a product it has a strong motivation to DUMP overseas. Dumping it at home would be counterproductive. The free and open US market has been a constant target for these dumped products. The result has been collapsing industries, lost jobs, rust belts and the the hollowing our of our middle class.
The Chinese produce cheap steel and aluminum then—dump these metals abroad—at prices way below normal costs of production. Our own steel and aluminum industries are fully capable of competing on a level playing field. But state supported industries in Asia, and Europe are not playing the game fairly. Trump is right to impose tariffs on imported aluminum and steel—to protect these critical industries.
The media and TV talking heads are ready—too ready—to criticize. They claim placing US tariffs on these commodities will cause retaliation and a trade war. But our products often face higher tariffs abroad than we impose on for example autos and food products. The critics also claim that US “downstream” industries which use these commodity will be impacted by the higher prices—since they will no longer be able to take advantage of cheap dumped steel and aluminum. They will have to pay more realistic prices for their raw materials. Perhaps a can of beer—may cost a penny more..or a vehicle a fifty or more bucks more.
We must weigh these costs against doing nothing and letting the steel workers and aluminum workers loose their jobs and those industries go the way of the electrical, shoe, clothing and other industries which we have blithely let die and disappear.
They were not critical for our survival. Steel and aluminum are.
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