Quote:
Originally Posted by Knight Hospitaller
The problem isn't free trade. It's "dumping," which artificially lowers the price of steel and aluminum (long enough to greatly reduce American production capacity). I see this as a negotiating tactic since NAFTA countries were exempted and other countries can negotiate on a case by case basis -- ergo, non-dumpers aren't going to get hit as hard (if at all).
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Yeah, I get that.
International trade left to its natural course without tariffs, quotas, or other restrictions.
Regardless, if a foreign company decides to sell steel at a lower price, that's there pejorative. I know we cry "unfair," but if US companies choose not to buy foreign steel, they can always buy US steel and the dumping would slow or reverse. But, there is voracious appetite for lower cost steel at the expense of US steelmaker, yes. However, the choice is with the company buying the steel. They can support US steel manufacturers or not, but again US companies that use steel must survive and be profitable so as I've said earlier no one is forcing US companies CEOs to buy foreign steel, but capitalism and profits can be a beast. Plus, I think it ultimately hurts US downstream companies that rely on it to make other commodities like vehicles, beer kegs (aluminum), and other U.S. industries that heavily use steel and aluminum.
Maybe if there's an economist on this board, s/he can chime in.