It’s clear these tariffs are a negotiating tactic. The White House and Congress are working now to exempt certain countries and products from the steel and aluminum tariffs. That’s a sign the White House knows it needs to target bad actors in a deliberate way. It’s also a good sign that, shortly after announcing the steel and aluminum tariffs, the president appointed Larry Kudlow as his top economic adviser. Kudlow opposes tariffs – shortly before he took the White House job, he said the president would “regret” his steel and aluminum penalties.
Let’s hope these tariffs are limited and temporary.
Either way, American industry will power through them. These tariffs will have a short-term impact on costs, but that impact won’t be as catastrophic as ivory tower economists predict. Businesses can handle them. We’re always innovating and finding ways to make products more efficiently, and, therefore, at a lower cost to consumers. The long-term benefits of fighting this war, fighting for fairness, will be worth the short-run pain.
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