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Trump’s steel tariffs impact American manufacturers

But as far as Trump, is concerned, Trade wars are necessary, and they’re easy to win 

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Lots of production and jobs are on the line as the effects of Trump’s metals tariffs work their way down the food chain. Several companies that utilize steel as a primary material for the products they produce are concerned about how these tariffs will impact their competitiveness, their workforce, and their bottom lines.

ABC News reports:

Joel Johnson examines the shipping labels on 35-ton coils of American-made steel that will be unspooled, bent and welded into rounded sections of pipe.

One’s from Nucor, a mill in Arkansas. Another’s from Steel Dynamics in Mississippi. But much harder to spot in the sprawling factory yard is the imported steel that’s put his company in the crosshairs of President Donald Trump’s bitter trade dispute with America’s allies and adversaries.

Trump says his tariffs on steel, aluminum and other goods will put U.S. companies and workers on stronger footing by winding back the clock of globalization with protectionist trade policies. But the steel tariff — essentially a 25 percent tax — may backfire on the very people the president is aiming to help. The Commerce Department has been deluged with requests from 20,000 companies seeking exemptions.

Johnson is the CEO of Borusan Mannesmann Pipe US, a company with Turkish roots that manufactures the welded pipe used by energy companies to pull oil and natural gas out of the earth. He has been fighting an uphill battle to get a two-year exemption from Trump’s tariff on steel imports.

Without a waiver, Johnson said, Borusan faces levies of up to $30 million a year — a staggering sum for a business with plans to expand.

“We don’t have any proof we’re being heard,” Johnson said.

Eighty miles southwest, in Bay City, global steel giant Tenaris also is seeking an exemption from the tariffs. The company churns out steel pipe in a $1.8 billion state-of-the-art facility that began operating late last year, using solid rods of steel called billets that are made in its mills in Mexico, Romania, Italy and Argentina. Of the four, only Argentina has agreed to limit steel shipments to the U.S. in exchange for being spared the tariff.

“The decision is out of our hands,” said Luca Zanotti, president of Tenaris’s U.S. operations, while expressing confidence its request would be approved. If it’s not? “We’ll adapt,” he said.

Steelworkers, meanwhile, are cheering the tariff even as they remain skeptical of Trump’s pledge to empower blue-collar Americans. They also worry about the possibility of too many exemptions.

“You put these tariffs (in place) but now you’re going to exclude everybody so they’re kind of pointless,” said Durwin Royal, president of United Steelworkers’ Local 4134 in Lone Star, Texas.

The diverse views illustrate the complexity, confusion and concern lurking behind Trump’s “America First” pledge.

Pipe mills are numerous in Texas, which leads the country in oil and natural gas production. Factories that use imported steel typically do so when they can’t get the exact type or quantity they need from U.S. producers. Many of them are among the thousands of companies that have filed exclusion requests to avoid being hit by the steel tariff.

Most of them are in the dark, unsure if their applications will be approved as the Commerce Department struggles to process a dramatically higher number of requests than it expected to receive.

A denial may torpedo plans to expand a factory. Or a company may have to lay off employees. The stakes are especially high in Texas: Economists Joseph Francois and Laura Baughman have estimated the Trump steel tariff and separate 10 percent tariff on imported aluminum will trigger the loss of more than 40,000 jobs.

There’s no playbook to guide companies through an exemption process Johnson described as chaotic and unpredictable. He’s hired a lobbyist, former New York Gov. George Pataki. He’s fending off opposition from competitors, including a Tenaris-owned business, who want Borusan’s request denied.

On a sweltering afternoon earlier this month, Johnson assembled dozens of his employees in an air-conditioned room for what amounted to a Hail Mary pass. After lunching on sandwiches from Chick-fil-A, Borusan workers wrote personal messages on oversized postcards to be sent to Trump and other senior officials in Washington and Austin, the Texas capital, pleading for their help in securing the tariff exemption.

“I don’t know what motivates politicians besides votes,” Johnson said. “That’s why we’re doing this crazy exercise.”

———

UNION BLUE

Royal is in his third term as the president of Local 4134.

He and the local’s vice president, Trey Green, are union Democrats in the heart of Trump country. Lone Star is in Morris County, Texas, where Trump received nearly 70 percent of the vote in the 2016 presidential election. Royal and Green initially backed independent Vermont Sen. Bernie Sanders before casting their votes for Democrat Hillary Clinton.

Their union hall is a mile and a half from the U.S. Steel factory that manufactures welded pipe made from metal produced in the company’s mills in Indiana and Illinois. Like the union, U.S. Steel backed Trump’s tariff, declaring that his action would “level the playing field” by blocking other countries from dumping inexpensive steel in the United States. Much of it comes from China.

Although Royal and Green were heartened by the steel tariff, they said they’re under no illusion Trump is a friend to organized labor. Nor are they convinced his tough talk on trade will lead to a rebuilt U.S. steel industry with more and better jobs. Echoing Sanders, they called for a broader strategy to prevent corporations from sending American jobs to low-wage countries.

“I don’t know that putting tariffs on just one or two particular items are going to be the mainstay that helps us in the future,” Green said.

Royal and Green said they’re still waiting for Trump to follow through on his pledge to empower working-class Americans that he said were “forgotten” by Washington.

“So much money is in politics now it’s kind of drowning people like us out,” Royal said. “We’re not going to take (a congressman) to dinner and buy him a new set of golf clubs or give $250,000 toward his campaign. You can tell who’s got the loudest voice there.”

———

COST OF DOING BUSINESS

The Tenaris factory is a massive, modern facility just off the highway leading into Bay City, 21 miles from the Gulf of Mexico. About 640 people work here, but only a handful come into direct contact with the 50,000 tons of pipe the 1.2 million-square-foot factory is able to manufacture each month. The process is almost entirely automated, watched over by employees huddled in front of computer screens.

The company manufactures seam-free pipe typically used in offshore energy production or for transporting highly corrosive gas.

Tenaris began construction of the Bay City plant five years ago, long before anyone anticipated an American president would slap a tariff on steel. Zanotti declined to say how much Tenaris may have to pay, but he downplayed the expense as a cost of doing business on a global scale. Tenaris operates in 16 countries, including Nigeria, which ranks 145 out of 190 countries on the World Bank’s “ease of doing business” index.

“Of course we don’t like it,” Zanotti said of the tariff.

But, he added, “we’re used to dealing with moving parts. This is another moving part.”

The company doesn’t have a registered lobbyist in Washington, let alone an office. But Tenaris has deep pockets and is in the U.S. for the long haul.

Zanotti said the company has spent $8 billion over the last decade to expand its foothold in America, a figure he doesn’t think the Commerce Department should overlook. The investment includes the Bay City factory and the acquisition of the Maverick Tube Corporation, based in Houston. Like Borusan and U.S. Steel, Maverick makes pipe with a welded seam.

“We’re positive we’re going to get a good conclusion,” Zanotti said.

———

LET’S MAKE A DEAL

Johnson said he has a proposition for a president who prides himself on being a master dealmaker.

About 60 percent of Borusan’s welded pipe is manufactured with American-made steel. The rest is shipped from Turkey already in tube form; it’s heat-treated, threaded and inspected in Baytown. Johnson is proposing that Borusan be allowed to bring in 135,000 tons of Turkish pipe each year for the next two years, tariff-free. In return, the company will build a new factory, right next to its existing plant.

That’s a $75 million investment that will allow Borusan to hire 170 new employees, augmenting its existing workforce of 267, according to Johnson. The expanded capacity also will allow Borusan to wean itself from the Turkish imports. He said he’s gotten no reply to his pitch.

The company brought ex-Gov. Pataki, a Republican, on board in March and has paid him $75,000 to drum up support in Washington. But Johnson said he’s unsure if Pataki’s made a difference.

“We’re not politicians. We make pipe,” he said. “We felt like that was a move we had to make because we are so far out of our element.”

Johnson said he had for weeks unsuccessfully sought support from GOP Rep. Brian Babin, whose district includes Baytown. Babin wrote to Commerce Secretary Wilbur Ross on Thursday, expressing his strong support for Borusan’s request and urging Ross to give it “your highest consideration.”

“Finally,” Johnson said.

The Commerce Department has been posting the thousands of requests for tariff exemptions online to allow third parties to offer comments and objections — even competitors who have an interest in seeing a rival’s request denied. Several of them, including U.S. Steel and Tenaris-owned Maverick Tube, objected to Borusan’s bid, saying the Turkish pipe it imports is readily available from American suppliers. They added that Turkey has been cited by the Commerce Department for dumping steel pipe in the U.S.

But Johnson said the objections are aimed at undercutting Borusan. He said no U.S. pipe mill is serious about selling to him because he’d want very detailed information about their products — such as the composition of the steel and a history of customer complaints.

“They just don’t want to see another factory go up here,” Johnson said. “They don’t want to see a competitor grow.”

While American steel manufacturers love Trump’s tariffs, as they help improve their position on the market, it doesn’t bode so well for those manufacturers that have to use steel as a major component of their production. The US just doesn’t produce enough steel to meet the demands of its domestic market, let alone that of markets overseas. For this reason, many American manufacturers will still need to rely on imported steel to meet their production demand, which means that they will be meeting Trump’s tariffs head on, thereby increasing their production costs, which will invariably travel down the food chain to the consumer. That chain of events does not bode quite so well for Americans who depend on these industries for employment, as production cuts and costs could result in employment cuts. But as far as Trump, is concerned, Trade wars are necessary, and they’re easy to win.

 

 

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John C Durham
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John C Durham

You don’t know much about Tariff history in America. For 200 years we would not let products into the country made cheaper than we could make them here. Why? Because everything made cheaper means either it is coming from a nation with a very low standard of living or the product is being dumped because it is surplus product. Maybe how to protect one’s business has been forgotten, but manufacturers that can now point out to the government that product is coming in below the cost of production possible inside the living standards of the U.S. The way its been… Read more »

Brad Isherwood
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Brad Isherwood

Possibly the Tariffs are leverage to move Capital out of hiding and into the Ponzi stock market.
More companies lay off workers,..shudder production/plants…..buy up thier own stock to create the Fake Strong economy that Wallstreet pushes via its controlled media.

After retail Apocalypse in America,…..can the Govs low unemployment numbers be believed?

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US media suffers panic attack after Mueller fails to deliver on much-anticipated Trump indictment

Internet mogul Kim Dotcom said it all: “Mueller – The name that ended all mainstream media credibility.”

RT

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Via RT


Important pundits and news networks have served up an impressive display of denials, evasions and on-air strokes after learning that Robert Mueller has ended his probe without issuing a single collusion-related indictment.

The Special Counsel delivered his final report to Attorney General William Barr for review on Friday, with the Justice Department confirming that there will be no further indictments related to the probe. The news dealt a devastating blow to the sensational prophesies of journalists, analysts and entire news networks, who for nearly two years reported ad nauseam that President Donald Trump and his inner circle were just days away from being carted off to prison for conspiring with the Kremlin to interfere in the 2016 presidential election.

Showing true integrity, journalists and television anchors took to Twitter and the airwaves on Friday night to acknowledge that the media severely misreported Donald Trump’s alleged ties to Russia, as well as what Mueller’s probe was likely to find. They are, after all, true professionals.

“How could they let Trump off the hook?” an inconsolable Chris Matthews asked NBC reporter Ken Dilanian during a segment on CNN’s ‘Hardball’.

Dilanian tried to comfort the CNN host with some of his signature NBC punditry.

“My only conclusion is that the president transmitted to Mueller that he would take the Fifth. He would never talk to him and therefore, Mueller decided it wasn’t worth the subpoena fight,” he expertly mused.

Actually, there were several Serious Journalists who used their unsurpassed analytical abilities to conjure up a reason why Mueller didn’t throw the book at Trump, even though the president is clearly a Putin puppet.

“It’s certainly possible that Trump may emerge from this better than many anticipated. However! Consensus has been that Mueller would follow DOJ rules and not indict a sitting president. I.e. it’s also possible his report could be very bad for Trump, despite ‘no more indictments,'” concluded Mark Follman, national affairs editor at Mother Jones, who presumably, and very sadly, was not being facetious.

Revered news organs were quick to artfully modify their expectations regarding Mueller’s findings.

“What is collusion and why is Robert Mueller unlikely to mention it in his report on Trump and Russia?” a Newsweek headline asked following Friday’s tragic announcement.

Three months earlier, Newsweek had meticulously documented all the terrible “collusion” committed by Donald Trump and his inner circle.

But perhaps the most sobering reactions to the no-indictment news came from those who seemed completely unfazed by the fact that Mueller’s investigation, aimed at uncovering a criminal conspiracy between Trump and the Kremlin, ended without digging up a single case of “collusion.”

The denials, evasions and bizarre hot takes are made even more poignant by the fact that just days ago, there was still serious talk about Trump’s entire family being hauled off to prison.

“You can’t blame MSNBC viewers for being confused. They largely kept dissenters from their Trump/Russia spy tale off the air for 2 years. As recently as 2 weeks ago, they had @JohnBrennan strongly suggesting Mueller would indict Trump family members on collusion as his last act,” journalist Glenn Greenwald tweeted.

While the Mueller report has yet to be released to the public, the lack of indictments makes it clear that whatever was found, nothing came close to the vast criminal conspiracy alleged by virtually the entire American media establishment.

“You have been lied to for 2 years by the MSM. No Russian collusion by Trump or anyone else. Who lied? Head of the CIA, NSA,FBI,DOJ, every pundit every anchor. All lies,” wrote conservative activist Chuck Woolery.

Internet mogul Kim Dotcom was more blunt, but said it all: “Mueller – The name that ended all mainstream media credibility.”

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Canadian Lawmaker Accuses Trudeau Of Being A “Fake Feminist” (Video)

Rempel segued to Trudeau’s push to quash an investigation into allegations that he once groped a young journalist early in his political career

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Via Zerohedge

Canada’s feminist-in-chief Justin Trudeau wants to support and empower women…but his support stops at the point where said women start creating problems for his political agenda.

That was the criticism levied against the prime minister on Friday by a conservative lawmaker, who took the PM to task for “muzzling strong, principled women” during a debate in the House of Commons.

“He asked for strong women, and this is what they look like!” said conservative MP Michelle Rempel, referring to the former justice minister and attorney general Jody Wilson-Raybould, who has accused Trudeau and his cronies of pushing her out of the cabinet after she refused to grant a deferred prosecution agreement to a Quebec-based engineering firm.

She then accused Trudeau of being a “fake feminist”.

“That’s not what a feminist looks like…Every day that he refuses to allow the attorney general to testify and tell her story is another day he’s a fake feminist!”

Trudeau was so taken aback by Rempel’s tirade, that he apparently forgot which language he should respond in.

But Rempel wasn’t finished. She then segued to Trudeau’s push to quash an investigation into allegations that he once groped a young journalist early in his political career. This from a man who once objected to the continued use of the word “mankind” (suggesting we use “peoplekind” instead).

The conservative opposition then tried to summon Wilson-Raybould to appear before the Commons for another hearing (during her last appearance, she shared her account of how the PM and employees in the PM’s office and privy council barraged her with demands that she quash the government’s pursuit of SNC-Lavalin over charges that the firm bribed Libyan government officials). Wilson-Raybould left the Trudeau cabinet after she was abruptly moved to a different ministerial post – a move that was widely seen as a demotion.

Trudeau has acknowledged that he put in a good word on the firm’s behalf with Wilson-Raybould, but insists that he always maintained the final decision on the case was hers and hers alone.

Fortunately for Canadians who agree with Rempel, it’s very possible that Trudeau – who has so far resisted calls to resign – won’t be in power much longer, as the scandal has cost Trudeau’s liberals the lead in the polls for the October election.

 

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Why Joe May be Courting Stacey

Joe Biden has a history on compulsory integration dating back to the 1970s that Sen. Jesse Helms called “enlightened.”

Patrick J. Buchanan

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Authored by Patrick Buchanan via The Unz Review:


Of 895 slots in the freshman class of Stuyvesant High in New York City, seven were offered this year to black students, down from 10 last year and 13 the year before.

In the freshman class of 803 at The Bronx High School of Science, 12 students are black, down from last year’s 25.

Of 303 students admitted to Staten Island Technical High School, one is African-American.

According to The New York Times, similar patterns of admission apply at the other five most elite high schools in the city.

Whites and Asians are 30 percent of middle school students, but 83 percent of the freshman at Bronx High School of Science, 88 percent at Staten Island Technical and 90 percent at Stuyvesant.

What do these numbers tell us?

They reveal the racial composition of the cohort of scientists and technicians who will lead America in the 21st century. And they tell us which races will not be well represented in that vanguard.

They identify a fault line that runs through the Democratic Party, separating leftists who believe in equality of results for all races and ethnic groups, and those who believe in a meritocracy.

Mayor Bill de Blasio has expressed anger and frustration at the under-representation of blacks and Hispanics in the elite schools. But Gov. Andrew Cuomo and the state legislature have ignored his pleas to change the way students are admitted.

Currently, the same test, of English and math, is given to middle school applicants. And admission to the elite eight is offered to those who get the highest scores.

Moreover, Asians, not whites, are predominant.

Though 15 percent of all middle school students, Asians make up two-thirds of the student body at Stuyvesant, with 80 times as many slots as their African-American classmates.

The egalitarian wing of the Democratic Party sees this as inherently unjust. And what gives this issue national import are these factors:

First, the recent scandal where rich parents paid huge bribes to criminal consultants to get their kids into elite colleges, by falsifying records of athletic achievement and cheating on Scholastic Aptitude Tests, has caused a wave of populist resentment.

Second, Harvard is being sued for systemic reverse racism, as black and Hispanic students are admitted with test scores hundreds of points below those that would disqualify Asians and whites.

Third, Joe Biden has a history on compulsory integration dating back to the 1970s that Sen. Jesse Helms called “enlightened.”

Here are Biden’s quotes, unearthed by The Washington Post, that reflect his beliefs about forced busing for racial balance in public schools:

“The new integration plans being offered are really just quota systems to assure a certain number of blacks, Chicanos, or whatever in each school. That, to me, is the most racist concept you can come up with.

“What it says is, ‘In order for your child with curly black hair, brown eyes, and dark skin to be able to learn anything, he needs to sit next to my blond-haired, blue-eyed son.’ That’s racist!

“Who the hell do we think we are, that the only way a black man or woman can learn is if they rub shoulders with my white child?

“I am philosophically opposed to quota systems. They insure mediocrity.”

That was 44 years ago. While those views were the thinking of many Democrats, and perhaps of most Americans, in the mid-’70s, they will be problematic in the 2020 primaries, where African-Americans could be decisive in the contests that follow Iowa and New Hampshire.

Biden knows that just as Bernie Sanders, another white male, fell short in crucial South Carolina because of a lack of support among black voters, he, too, has a problem with that most loyal element in the Democratic coalition.

In 1991, Biden failed to rise to the defense of Anita Hill when she charged future Justice Clarence Thomas with sexual harassment. In the Senate Judiciary Committee, he was a law-and-order champion responsible for tough anti-crime legislation that is now regarded as discriminatory.

And he has a record on busing for racial balance that made him a de facto ally of Louise Day Hicks of the Boston busing case fame.

How, with a record like this, does Biden inoculate himself against attacks by rival candidates, especially candidates of color, in his run for the nomination?

One way would be to signal to his party that he has grown, he has changed, and his 2020 running mate will be a person of color. Perhaps he’ll run with a woman of color such as Stacey Abrams, who narrowly lost the 2018 governor’s race in Georgia.

An ancillary benefit would be that Abrams on the ticket would help him carry Georgia, a state Donald Trump probably cannot lose and win re-election.

Wrote Axios this morning:

“Close advisers to former Vice President Joe Biden are debating the idea of packaging his presidential campaign announcement with a pledge to choose Stacey Abrams as his vice president.”


Patrick J. Buchanan is the author of “Nixon’s White House Wars: The Battles That Made and Broke a President and Divided America Forever.”

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