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Tariffs On China Alone Won’t Protect U.S. Steel

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In early March, President Trump announced forthcoming import tariffs on both steel and aluminum, leaving key trade allies scrambling for possible exemptions and prompting wild speculation of artificial price inflation.

European Union trade commissioner Cecilia Malmstrom abruptly flew to Washington to push back against the proposed measure. Ultimately, the commission proved successful, as the EU, Argentina, Australia, Brazil, Canada, Mexico, and South Korea received exemptions, protecting two-thirds of world steel production from the proposed tariffs.

While smoothing over relations with allies, these exemptions quickly undermined the initial leverage the proposed tariffs granted, representing a serious threat to the sustainability of the U.S. steel industry.

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Immediately following the announcement of tariff exemptions on March 22, shares of U.S. Steel Corp dropped 11 percent, while the S&P steel index fell 7.4 percent, the largest single-day drop since 2011. These economic downturns could easily jeopardize the creation and sustainment of domestic steel jobs, including the 500 new jobs announced by U.S. Steel in March.

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Fortunately, the tariff exemptions are temporary, bearing a May 1 expiration date. When these measures have lapsed, the president should continue to use tariffs to hold bad actors accountable.

These economic measures have already given the Trump administration an effective bargaining chip to combat steel market overcapacity, and to give American companies access to foreign markets they were previously barred from.

South Korea agreed to reduce its steel exports to the U.S. by 30 percent in March, all to avoid Trump’s proposed 25 percent tariff.  Additionally, the agreement allows U.S. car companies to sell 50,000 cars per year in South Korea, forgoing additional testing. This exercise in South Korea proves that tariffs, or the mere threat of tariffs, work.

“In lieu of tariffs on steel, we have a quota which is equal to only 70 percent of their shipments from the last few years, and this will be as effective as the tariffs, and preserve the integrity of the steel industry. So let’s not talk about exemptions letting anybody out,” Trump trade adviser Peter Navarro told NPR, and his judgement rings true.

Trump recently placed $60 billion in tariffs on China, an actor that depresses U.S. steel production and prices by illegally subsidizing domestic production of steel to sell in the global marketplace, also known as “dumping.”

While this is an excellent move, China isn’t the extent of the issue, as 85 percent of U.S. steel trade cases have involved countries other than China in the last four years.

In 2015, six major steelmakers filed anti-dumping and countervailing duties charges against China, India, Italy, South Korea, and Taiwan, alleging a violation of international trade law by importing government-subsidized steel.

“These unfairly traded imports have seriously impacted pricing in the U.S. market, which has resulted in a significant negative effect on our production, sales and earnings,” AK Steel President James Wainscott wrote in a statement.

Clearly, in order to protect the U.S. steel industry, the president should not consider further exemptions, as even trade “allies” are actively engaging in predatory business practices. By extending tariffs to all countries that break the rules, Trump could shore up our economy and national security, keeping a vital domestic industry alive.

Big League Economics

Globalists are Planning ‘Climate Lockdowns’ to Finish Off Economic Prosperity in the West

They are coming for everything.

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While COVID-19 mass hysteria may be waning, the globalists are intent on continuing the trend of locking down society and destroying economic prosperity for the peasants.

After the scamdemic comes to an end, it will be climate change used to pump the masses full of fear and get them to accept Draconian measures to cripple their own civilization.

Mariana Mazzucato, a professor at the Economics of Innovation and Public Value Center at University College London, is setting the stage for climate lockdowns if unprecedented taxation and centralized power are not exerted over the economy.

“Under a ‘climate lockdown,’ governments would limit private-vehicle use, ban consumption of red meat, and impose extreme energy-saving measures, while fossil-fuel companies would have to stop drilling,” Mazzucato wrote in her white paper, Avoiding a Climate Lockdown.” 

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She contends that the only way to stop the inevitability of climate lockdowns is to “overhaul our economic structures and do capitalism differently,” meaning do away with it entirely and replace it with totalitarian socialism.

“[G]overnment assistance to business must be less about subsidies, guarantees, and bailouts, and more about building partnerships. This means attaching strict conditions to any corporate bailouts to ensure that taxpayer money is put to productive use and generates long-term public value, not short-term private profits,” she wrote. 

“Because markets will not lead a green revolution on their own, government policy must steer them in that direction. This will require an entrepreneurial state that innovates, takes risks, and invests alongside the private sector,” Mazzucato contended.

Her writings are already influential, according to the New York Times, among politicians who are using her scribblings as an excuse to take unprecedented power-grabs.

Sen. Elizabeth Warren (D-MA) has incorporated Mazzucato’s writings into policy ideas such as using “federal R & D to create domestic jobs and sustainable investments in the future.” Rep. Alexandria Ocasio-Cortez (D-NY) is considering Mazzucato’s ideas to strengthen her Green New Deal proposal.

Even Republican lawmakers are embracing Mazzucato’s extreme anti-capitalist doom prophecies. Sen. Marco Rubio (R-FL) cited Mazzucato in his proposal, “American Investment in the 21st Century,” which is essentially a manifesto of surrender to the Left from the failed neoconservative 2016 presidential hopeful.

“We need to build an economy that can see past the pressure to understand value-creation in narrow and short-run financial terms,” Rubio wrote in the introduction, “and instead envision a future worth investing in for the long-term.”

Mazzucato has also influenced former British Labour Party leader Jeremy Corbyn, former British prime minister Theresa May, and Scottish leader Nicola Sturgeon. Mazzucato’s reach extends to other countries such as Germany and South Africa, and she is considered a charismatic rising star in the field of economics.

It should be obvious by now that the ruling elites never intend to restore freedom to pre-COVID levels. The lockdowns are a permanent fixture of society now, and they will be reintroduced at some point under the guise of stopping climate change.

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