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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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James Woods Suspended From Twitter Over Satirical Meme That Could “Impact An Election”

James Woods crushes Jack Dorsey: “You are a coward, @Jack.”

Alex Christoforou

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Via Zerohedge


Outspoken conservative actor James Woods was suspended from posting to Twitter over a two-month-old satirical meme which very clearly parodies a Democratic advertisement campaign. While the actor’s tweets are still visible, he is unable to post new content.

The offending tweet from July 20, features three millennial-aged men with “nu-male smiles” and text that reads “We’re making a Woman’s Vote Worth more by staying home.” Above it, Woods writes “Pretty scary that there is a distinct possibility this could be real. Not likely, but in this day and age of absolute liberal insanity, it is at least possible.”

According to screenshots provided by an associate of Woods’, Twitter directed the actor to delete the post on the grounds that it contained “text and imagery that has the potential to be misleading in a way that could impact an election.

In other words, James Woods, who has approximately 1.72 million followers, was suspended because liberals who don’t identify as women might actually take the meme seriously and not vote. 

In a statement released through associate Sara Miller, Woods said “You are a coward, @Jack,” referring to Twitter CEO Jack Dorsey. “There is no free speech for Conservatives on @Twitter.

Earlier this month, Woods opined on the mass-platform ban of Alex Jones, tweeting: ““I’ve never read Alex Jones nor watched any of his video presence on the internet. A friend told me he was an extremist. Believe me that I know nothing about him. That said, I think banning him from the internet is a slippery slope. This is the beginning of real fascism. Trust me.”

Nu-males everywhere non-threateningly smirk at Woods’ bad fortune…

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Another witness named by Ford becomes third person to deny being at party

A woman believed to have been one of five people at a party 35 years ago where Ford claims she was assaulted by Kavanaugh is now the fourth person to deny being at any such party.

The Duran

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Via The Washington Examiner


A witness, reportedly named by Christine Blasey Ford as one of the people at the high school party where Supreme Court nominee Brett Kavanaugh allegedly sexually assaulted her, told the Senate Judiciary Committee on Saturday she was not there.

The attorney for Leland Ingham Keyser told the Senate Judiciary Committee that Keyser does not remember being at the party Ford described as the location of the alleged assault.

“Ms. Keyser does not know Mr. Kavanaugh and she has no recollection of ever being at a party or gathering where he was present, with, or without, Dr. Ford,” Keyser said in the statement. CNN reported Keyser is a lifelong friend of Ford’s.

Keyser, whom the New York Times reported is one of the people Ford named as being in attendance at the party, is the third witness who has denied knowing about the alleged assault. Mark Judge and Patrick Smyth said earlier this week they did not remember the party in question.

Kavanaugh has denied Ford’s allegation.

The news comes after Ford, through her attorneys, tentatively agreed to testify on Thursday, after days of negotiations over the timing and conditions of her

Committee chairman Sen. Chuck Grassley, R-Iowa, had repeatedly extended deadlines set for Ford’s team on the decision, including three on Friday and one at 2:30 p.m. Saturday. Grassley threatened to proceed with a committee vote on Kavanaugh’s nomination Monday if he did not hear from Ford.

“Five times now we [have] granted extension for Dr Ford to decide if she wants to proceed [with] her desire stated one [week] ago that she wants to tell senate her story,” Grassley tweeted Friday. “Dr Ford if u changed ur mind say so so we can move on I want to hear ur testimony. Come to us or we to u.”

The extended discussions have been labeled a delaying tactic by some Republicans.

Ford’s attorneys and Grassley’s aides will reportedly continue negotiations Sunday on the details of the conditions of Ford’s testimony, per the New York Times.

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Was NYT Story About Rosenstein ‘Coup Attempt’ A Setup?

The New York Times is reporting that Rod Rosenstein pushed a plan to record President Trump and invoke the 25th Amendment to remove Trump from office.

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Via Zerohedge


Is the FBI trying to goad President Trump into firing the man in charge of supervising the Mueller probe? That’s what Sean Hannity and a handful of  Trump’s Congressional allies think.

According to a report in Politico, Republicans in Congress are approaching a story about Deputy Attorney General Rod Rosenstein attempting to organize a palace coup with extreme caution, despite having twice nearly gathered the votes to remove him in the recent past.

On Friday, the NYT reported a bombshell story alleging that Rosenstein had tried to recruit administration officials to secretly tape conversations with the president in order to help justify removing Trump under the 25th amendment. Rosenstein vehemently denied the story, which was largely based on confidential memos written by former Deputy FBI Director Andrew McCabe. And others who were reportedly in attendance at meeting between McCabe and Rosenstein said the Deputy AG was being “sarcastic” when he suggested that the president be taped.

Meanwhile, Trump allies including Ohio Congressman Jim Jordan and Florida Congressman Matt Gaetz are saying that the story should be treated with suspicion. Jordan and Freedom Caucus leader Mark Meadows once filed articles of impeachment against Rosenstein. But now, both Meadows and Jordan intend to proceed with caution, telling Politico that he would like to see the memos that the story was based on.

House Freedom Caucus leaders Mark Meadows and Jim Jordan, who led a charge to impeach Rosenstein this summer, have said they want to hear from Rosenstein and see documents allegedly describing the comments before they decide what to do.That’s awarded Rosenstein a courtesy they’ve never given him in the past.

“I think Rod needs to come before Congress this week and explain under oath what exactly he said and didn’t say,” Meadows said at the Values Voters Summit Saturday.

The newfound hesitation to oust Rosenstein highlights a cautious approach Trump allies have adopted as the Republican party barrels toward a potential bloodbath in the midterms. Some Republicans fear Trump firing Rosenstein now would only further energize Democrats making the case to voters that the president is corrupt and needs to be reined in by a Democratic House.

[…]

In a Friday interview, Jordan, one of Rosenstein’s fiercest critics in Congress, sidestepped questions about whether the House should revisit Rosenstein’s impeachment or try to hold him in contempt of Congress. Rather, he said, a more focused push to obtain sensitive documents from the Justice Department — which Trump’s allies say would expose anti-Trump bias and corruption the FBI — is the most urgent priority.

“I want to see those memos and evaluate them,” said Jordan, who has clashed publicly with Rosenstein over access to documents and accused him of threatening House Intelligence Committee staffers, an allegation Rosenstein denied.

Politico cites two possible explanations for lawmakers’ hesitation: Republicans are running out of time before members devote themselves full-time to their reelection campaigns. Republicans are worried that the story could have been intentionally planted to provoke Rosenstein’s firing in order to improve Democrats’ chances of retaking the Senate AND the House (Trump actively moving to crush the Mueller probe would be quite the propaganda win for the Dems).

Sean Hannity took this latter theory a step further during his show on Friday evening, where he urged Trump not to fire Rosie and instead insisted that the story could have been a “trap”. He added that he had been told by “multiple sources” that the story was planted by unspecified “enemies of Trump.”

“I have a message for the president tonight,” Hannity said Friday night. “Under zero circumstances should the president fire anybody…the president needs to know it is all a setup.”

Still, a handful of conservative commentators, including Laura Ingraham, urged Trump to fire Rosenstein immediately. And for Trump’s part, he hinted at a rally Friday night in Missouri that he planned to “get rid” of the “lingering stench” at the DOJ, which many interpreted as a hint that his firing is imminent.

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