In February 2018, President Trump pledged to impose a 25% tariff on steel imports and a 10% tariff aluminum imports into the U.S, which creates inflation on many products, but especially on the construction sector of the economy. A tariff is a tax on imports or exports between countries, in fact, it is protectionism. The proposed tariffs would increase the cost of aluminum and steel imports into the United States. In promoting the plan, Trump predicted that the tariffs would revive the U.S. steel and aluminum industries which were heavily concentrated in the industrial Midwest. Supporters of the tariffs argue that U.S. steel and aluminum manufacturers have been wiped out due to low-cost competition from foreign manufacturers. Supporters note that governments in countries like Japan and China provide subsidies to manufacturers, but how can they afford to sell and dump it in the USA, the all mighty dollar, manipulated by interest rates controlled by the fed. These subsidies, they argue, allow the manufacturers to then undercut the price of U.S. manufacturers. Supporters include Republicans and Democrats from the Midwest and unions who represent factory workers. Opponents argue that the tariffs will hurt U.S. based manufacturers who need aluminum and steel to produce their products. Manufacturers of cars, boats, beer, chemicals, and oil pipelines stated that they would be forced to raise prices in order to absorb the higher costs imposed by the tariffs as on any tax businesses figure in on business taxes. Tariffs should be zero all around the world. VAT consumption tax would be better. In that way, it would make government and business work closer together for each other's benefits.
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