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Only consumers can win US trade war: author

PHILADELPHIA — President Trump’s plan to place tariffs on foreign steel and aluminum has drawn dire warnings of starting a trade war.

But the U.S. is already in a trade war, one that it is losing badly, says Made in America Again founder James A. Stuber. In his recent book, “What if Things Were Made in America Again”, Stuber describes how China and other countries use subsidies, low labor standards, lax regulations, and trade barriers to consistently sell far more to the U.S. than they buy.

Regarding the hue and cry that has arisen in opposition to the announced steel and aluminum tariffs, Stuber said: “It is disheartening to see how quick many U.S. companies are to throw under the bus those companies farther upstream in the supply chain, just to protect their own niche. But they are mistaken if they believe that they are not themselves vulnerable to the foreign competition: the Chinese and the other mercantilists want to occupy the entire supply chain, especially in high value-added products. This is all spelled out in China’s ‘Made in China 2025’ plan.”

 

That author uses an example of an U.S. Steel mill in Granite City, which closed in the face of Chinese overcapacity, idling its 2,000 workers. At the worst, one worker committed suicide. More typically, one worker told his son he could not return for his junior year to complete college, as his sister had before him.”

In the postscript to his book, Stuber posed the question:

Will the U.S. Steel mill in Granite City reopen? Or will it fall victim to the Chinese overcapacity in steel, and remain silent? I believe it is a metaphor for our future. As goes that mill, so will go our country.

With the announcement of the steel and aluminum tariffs, U.S. Steel announced that it would restart two of the blast furnaces at the Granite City mill, returning 500 of the 2,000 laid-off employees to work.

But what of the 1,500 other workers? “This is only a first step,” Stuber said, “and it demonstrates that policy, while important, is not sufficient. The only true relief will come when American consumers buy automobiles and washing machines made with the steel from plants like the one in Granite City.

“The only true relief will come when we realize we’re already in a trade war, and only consumers can win it.” N.

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