How Trump's Tariffs Hurt Michigan's Economy
They hurt our nation's economy, but Michigan may be the biggest loser of all, writes Susannah Barnes at Mackinac Center. I like how she explains tariffs:
A tariff is a tax on virtually everyone except the industry it aims to protect.
Barnes continues:
Since the beginning of this year, Trump has instituted protectionist policies to try to stifle foreign competition to domestic goods. Billions of dollars' worth of tariffs have been introduced on imported goods, including steel and aluminum. These taxes have led countries like China, Mexico and Canada to reciprocate with tariffs of their own.China recently enacted 128 tariffs on American-made goods. This tit-for-tat hits Michigan hard, especially in the automotive, plastics and pharmaceutical industries. A Brookings Institution report found that when the tally of Chinese tariffs is taken, Michigan will be the fourth-hardest hit state. China's tariffs are projected to kill 91,000 jobs, 23,000 of which are in Wayne and Macomb counties. The vast majority of jobs lost statewide would be in automotive production.
Agriculture, too, takes a hit:
For small farms in Michigan, tariffs have an extra sting. Canada and Mexico account for two-thirds of Michigan's agricultural exports. The farming industry has already seen a sharp decline in income, which is projected to hit a twelve-year low in 2018. Tariffs just add insult to injury in the farming industry, exacerbating this extreme income loss.It's time for President Trump to quit the protectionist game. No one will ever win, and the United States will instead continue to be a big loser. Michigan's economy and industries would benefit were trade barriers to fall, and removing tariffs is the first step.
Here's more on the harm Trump's tariff's are doing to American agriculture from Gary Clyde Hufbauer at Peterson Institute for International Economics:
School children learn that Adolf Hitler repeated Napoleon Bonaparte's great mistake by attacking Russia at the onset of winter. But Donald Trump hasn't grasped that history lessons apply to trade battles as well as military campaigns. Instead, he is angering the farm belt with his tariff wars, reminiscent of two White House predecessors.To control domestic prices, Richard Nixon restricted soybean exports to Japan, a maneuver that accelerated Brazilian soybean production and gave the Japanese people a lasting penchant for food self-sufficiency--all to the grief of American farmers.
To punish Russia, Jimmy Carter halted wheat exports during the Afghanistan war of the 1970s, prompting a farm revolt and inspiring Ronald Reagan to promise "never again." Meddling with farm exports helped neither Nixon nor Carter, and it won't help Trump.
The soybean saga exemplifies Trump's predicament. To correct the Chinese dragon, Trump has embarked on an escalating tariff war. But economic sanctions in pursuit of ambitious goals seldom succeed when targeted against a major power. Instead of saluting Trump, China retaliated, and US soybean exports are a conspicuous victim.
Even the price of the tiniest items is affected:
#tariffs are having a bite because #tariffaretaxes
— Coalition of American Metal Manufacturers & Users (@tariffsaretaxes) August 17, 2018
"The Dane County Clerk said the county is spending more money than usual on dog tags as a result of Trump's tariffs on steel/aluminum.'If we had stuck with the same company it went from $1,500 to $4,000." https://t.co/0H9mFbNGJm








What makes you think, if you do, that tariffs aren't already in place in a variety of markets?
American auto companies already have to deal with 10% to go to Europe, IIRC.
Rather than something unilateral, notice this:
Those who are investors, and who pay attention to tariffs, can take advantage of marketing changes driven by government and profit by them.
I suggest that the end game should be to force the (re)development of domestic industry. Regardless of how the modern American consumer clamors for more and more things cheap, exporting your manufacturing is always a bad idea.
We're dumbing down all of our schools and importing all of our trinkets, right?
Radwaste at August 18, 2018 8:35 AM
Tariffs are great... if your plan is to destroy the economy.
http://blog.kentforliberty.com/2018/08/new-tariffs-nothing-to-cheer-about.html
Of course, I would have more sympathy for the tweeted example if it weren't a government meddling with people's choice to own pets by trying to regulate it.
Kent McManigal at August 18, 2018 8:39 AM
PS: Trump's decisions are always unilateral, and he get no advice from anyone, doesn't look at his own investments and doesn't care that the public isn't entitled to tell him what to do in detail.
OMG, he even has his own phone!
(this is called, "poisoning the well")
Radwaste at August 18, 2018 8:41 AM
Hey, let's not forget the embargo of wheat to the Middle East, which directly led to the formation of OPEC...
...which nations found out after a few years that they still had to maintain a "sweet spot" to keep the money coming, and then found out that as a group they had to compete with non-member sources of crude.
Radwaste at August 18, 2018 8:44 AM
Tariffs are, indeed, a tax on the American people and businesses that use imported goods from the countries whose products are targeted. Rather than having tariffs against China (the targeted nation), simply place a trading ban with that country until their behavior (IP theft, business and military espionage) changes.
IP and military secrets theft cost the U.S. hundreds of billions of dollars annually and supports development of those products (without the associated research costs) in an adversarial nation.
Incentivize trade with India while disincentivizing trade with China.
Bruce Hall at August 18, 2018 9:22 AM
That sounds awful. Has it cost us 15 million manufacturing jobs like NAFTA yet?
Gog_Magog_Carpet_Reclaimers at August 18, 2018 9:51 AM
I can’t tell you how much cheap and terrible Chinese steel has cost me in replacement firing pins and other gun parts. Not to mention the frame underneath my travel trailer.
Dont get me started on Chinese Seafood and pet food. Quality control there is criminal, and employs slave labor.
I see a tariff as a tax that I as a consumer can chose not to pay. Sadly, I haven't had the same luck with the IRS.
Isab at August 18, 2018 10:07 AM
Yes. American cars shipped into the EU face a 10% import duty while cars from the EU shipped into the US face a 2.5% import duty. When Trump threatened a tariff to even out the import duties, Merkel acknowledged the disparity and suggested the EU review its import duties on cars - since much of Germany's export car sales are made in the US and Germany had the most to lose from US tariffs on imported cars. Changing the EU import duties will be contentious since, by law, the duty must apply to all imported cars, from anywhere.
Unlike past presidents, Trump is bundling military and economic discussions instead of compartmentalizing each topic in a solipsistic silo. The US funds 22% of NATO's shared expenses and makes up 67% of the total defense spending by NATO countries.
NATO, and the countries in it, are far too reliant on US military capabilities - logistics, firepower, etc. - having failed to develop such capabilities for themselves. John Keegan illustrated European awe at US logistics capabilities in his book, The Iraq War, desribing the resupply of an armored penetration deep into enemy territory:
Conan the Grammarian at August 18, 2018 10:58 AM
"A tariff is a tax on ..."
No. Stop. That's it right there. A tariff is a tax on imported goods. That's it. Done. Don't need all the rest of that.
And if I have to trade Obama regulation with Trump tariffs, that is a trade I am happy to make. GDP growth is up. Substantially. And that is with interest rates up substantially as well. Are there individuals who are disproportionately hit by such things, yes. So what? That's been true for longer than any of us have been alive. But on the whole things are better economically than they were 2+ years ago.
Ben at August 18, 2018 11:25 AM
“The Dane County Clerk said the county is spending more money than usual on dog tags as a result of Trump's tariffs on steel/aluminum.‘If we had stuck with the same company it went from $1,500 to $4,000.” https://www.channel3000.com/news/alum“
These people are really graping at straws here arent they.?
How much of the production costs of dog tags are the raw materials?
Isab at August 18, 2018 1:15 PM
> No. Stop. That's it right there.
> A tariff is a tax on imported
> goods.
Paid by their buyers.
> he get no advice from anyone,
> doesn't look at his own
> investments
Delusion of this magnitude needs no countermand: You kids are Venezuela, waiting to happen.
Crid at August 18, 2018 3:43 PM
“Delusion of this magnitude needs no countermand: You kids are Venezuela, waiting to happen”
Crid at August 18, 2018 3:43 PM
If I recall correctly in Venezuela they were virtually giving stuff away at below market prices until they ran out of money.
The democratic party has typically been in favor of pro union, pro labor protectionist polices. What changed?
Wait, don't tell me, Trump proposed it. Must be bad.....
From what I read, China is a country that can’t sustain a trade war with the US. I’m willing to see how this shakes out, before I get my panties in a knot about it.
Isab at August 18, 2018 5:55 PM
http://www.kitcometals.com/charts/aluminum_historical_large.html#1year
Nope. Just not buying this argument.
Isab at August 18, 2018 6:10 PM
Tariffs with your dick in your hand.
Crid at August 18, 2018 7:29 PM
He's just a masterful human being, right?
Crid at August 18, 2018 7:32 PM
And if Trump's Tariffs are a part of Trump's economy I'll take it - I am much better off than I have been in the last 10 years. Good job, great pay with benefits, and a future that looks brighter than it has in years.
Obamanation is OVER - Thank God!
charles at August 19, 2018 6:32 AM
Wow. You are masterful Crid. Yes, as Isab pointed out tariffs are semi-optional because the buyer can chose who to buy from. And just like sales taxes this tax burden is mostly on the buyer.
And this leads to Venezuela? Oh my god! Our dog tags are destroying the US! Everybody panic! Wa wa wa!
Ben at August 19, 2018 7:07 AM
No, you silly little puff, the Venezuela part is your Chavismoid adoration of one of the tawdriest figures in [North!] American life over the past half-century, and your veneration of this proud illiterate as an exemplar of character and insight.
Ethical principle may be too much to ask of the common voter nowadays... So too perhaps is a 10th-grader's rejection of zero sum thinking in economics. Well, okay, no one's asking you to be bright.
But for fuck's sake, you're not in grade school anymore. You're all old enough to know better than to think of any human being in any context as the sole bearer of solutions to matters of such global consequence.
That you would select this multiply-failed & interpersonally incompetent weasel as the locus of your panty-moistened teenage aggrandizement explains the ascendance of shitbaby leftist culture in recent decades. The conservatively-inclinded man on the street is no more coherent in his appreciation of human affairs than is the most censorious, authoritarian lefty.
Hell to pay. But don't come cryin', little girls... Not to me.
Crid at August 19, 2018 9:55 AM
Has anyone come crying to you Crid? Seriously, even one?
Once you leave crazy pants land Trump doesn't have that much senseless adoration. I still remember Chris Mathews and his psudosexual thing with Obama. Now that was wierd. I must say it is rather ridiculous that a lifetime New York Democrat is better at advancing conservative principals than any other Republican leader. But most of Trump's 'adoration' is earned. He's actually kept quite a few campaign promises. As for ethics, he isn't doing to bad there too. Honestly about standard for Republican presidents. You just can't get away with much when the media is out to get you.
But by all means Crid actually make a sane argument and back it up with something other than random histrionics. At least Amy pointed out something sorta real. Though the price of dog tags in Dane county don't matter much to me.
Ben at August 19, 2018 10:34 AM
So the aluminum tariff is 10% and the steel tariff is a far steeper 25%. And the claim in the article is a small aluminum dog tag would have change from $1500 to $4000, a $2500 increase. That is 166% up. How is this related to a 10% increase in materials costs? Even plan B was a $700 increase, 46%. These are steel tags, not aluminum? Not according to the article.
None of these numbers add up. It is unlikely taxes have anything to do with these cost increases. Far more likely, the economy is returning to traditional growth rates. Wages are increasing and machine shops are more interested making higher profit items, muscling Dane county out. But improving Trump economy costs Dane county isn't that moving of a headline.
Ben at August 19, 2018 11:34 AM
None of these numbers add up. It is unlikely taxes have anything to do with these cost increases. Far more likely, the economy is returning to traditional growth rates. Wages are increasing and machine shops are more interested making higher profit items, muscling Dane county out. But improving Trump economy costs Dane county isn't that moving of a headline.
Ben at August 19, 2018 11:34 AM
The thought that occured to me, is a contractor trying to bilk the city government. We got that a lot when I was a contracting officer. Any excuse will do, and in this case, they could blame it on Trump so the media ran with it....
You would be amazed how many people spending other people’s money just pay up, no questions asked.
Isab at August 19, 2018 11:59 AM
This is pretty normal with machine shops Isab. They don't want to have any down time since the machines used to be so expensive and were probably bought on credit. So when business drops off prices follow just so they can keep making those interest payments. When business heats back up they ditch all the cheap contracts and focus on the big money. Aluminum dog tags are not a money maker. So they can't compete when real business comes to town.
On the bright side prices on CNCs and other tools are dropping pretty significantly. So the seasonal work stuff is having a smaller effect on price.
Ben at August 19, 2018 2:09 PM
> Has anyone come crying
Comments on this blog are a bottomless popcorn pan, with five or ten trivial detonations of resentment at the nature of the liberal project each and every day.
Yes, that is a fine metaphor, and thank you very much. You guys are enamored of your erratic little micro-explosions, carby calories of annoyance in no broader dinner of meaning.
Crid at August 19, 2018 6:17 PM
"carby calories of annoyance in no broader dinner of meaning"
I'm stealing that.
Gog_Magog_Carpet_Reclaimers at August 19, 2018 7:08 PM
Sooo, no one? Not a single person? You've been going off on this tears thing for a couple of years now and you haven't had a single taker? Why are you so worried about it?
Ben at August 20, 2018 7:21 AM
> I'm stealing that.
Yours to deploy. It was kinda gay and rainbow-y, and the second biggun in a two-'graph comment, but it still seemed worth posting.
> Not a single person?
Can't you read, bitchweed? All you little Trumpweepers are a castrato chorus of mustache-salting sorrow.
Crid at August 20, 2018 6:36 PM
Hell Crid! I've come crying to you? Am I effin sleep walking again? Cause I don't remember any of that.
Ben at August 21, 2018 7:50 AM
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