Based on a recent article posted by Alivenewspaper.com, the United States might be inching closer to a international trade war. With President Donald Trump, of the United States, imposing tariffs on aluminum and steel, every trading partner is having to scramble to make changes. According to Stansberry Research, a publisher of financial information, the president is proposing a 10% increase for aluminum and a 25% increase for steel. These changes have only increased international tensions and even some within the United States. While opposing Trump’s ideas might just be a tactic used to gain favor, doing so could cause its own issues.
Stansberry Research believes that such a high tariff on aluminum and steel will actually work against what the President wants. Both industries have been struggling to maintain employees within the United States, with many companies looking overseas to find new workers. While the tariff may cause some companies to return to the States, many doubt that the change will occur right away. Instead those in the industry are more likely to increase prices to make higher profits. They might also cut jobs to level out the cost of having to deal with these new tariffs. This will have an impact on everyone who works with these companies. The aluminum and steel industries are powerhouses all to themselves. Almost every United States citizen will be affected by this tariff and trade war if one were to occur.
Stansberry Research warns about the ramifications of those who grow frustrated with President Trump’s tariff. The European Union has already set up their own 25% tariff on anything they plan to import from the United States. Canada and China are also looking to set up their own tariff in response. With almost all major companies working with China for some part of manufacturing, it is almost impossible to avoid being influences by this impending trade war. Due to Gary Cohn, Trump’s economic advisor, stepping down, Stansberry Research also believes that there is no one close to the President fighting against the implementation of this tariff. Stansberry Research will monitor the situation and give updated information when it is available.