Trump’s placement of taxes on imported steel and aluminum products has been met with criticism by many. The administration has imposed tariffs on Canadian, Mexican, and European metals. The reason for this step is the mass steel production of China that has flooded all world steel and aluminum markets.
The huge output allows Chinese steel to be sold at cheap prices which is not good for United States steel industries. United States steel producers cannot keep up with the cheap market prices outside the United States.
The imposing of tariffs on countries other than China is a step toward preventing Chinese steel from sipping into United States markets through third countries.
During the recent visit to Duluth, Minnesota, Trump found a supporting group in the face of the iron mining industry of the state. Iron is the main ingredient that is used in the producing of steel. It is also one of the main industries for the state of Minnesota.
Kelsey Johnson, the president of the Iron Mining Association of Minnesota, has confirmed the support that the iron industry has received from Trump’s recent business policies. The policies of Trump have changed the economic dynamics in northeastern Minnesota after the 2015 economic downturn because of large steel imports from other countries.
The iron industry in Minnesota contributes to the state budget with more than $3 billion and provides jobs for over 11,000 workers. The iron mines of the state account for 80% of the steel production in the United States. This iron is used to manufacture numerous steel products within the country.
The policies of the Trump administration are not without opponents. The Koch brothers, who have a big say in politics, are opposing Trump’s decision. The Freedom Partners, American for Prosperity, and the LIBRE Initiative are planning to start a campaign for free trade later this month.
The Koch Network, of which these are a part, will be funding a campaign that will last several years against Trump’s trade policies. They believe that the tariffs imposed on Chinese products are mostly detrimental to consumers as steel products will inevitably go up with higher national steel prices.
The campaign plans to get lawmakers involved in the process as well. It will involve radio and TV launches that will begin on June 25 just after Trump’s threats for new $200 billion in tariffs on Chinese imports.