According to analysts, while tariffs may create some jobs in the steel industry, the US steel industry is unlikely to “reach a level playing field” or “regain its glory days.” China’s 50 percent world steel capacity, increased productivity per worker at mini-mills compared to integrated mills, and overall lower world prices are the reality that US steel producers have to contend with according to analysts.
While CEO’s at various US steel companies have applauded the tariff measures for helping restore balance in the US market from unfair trading practices from foreign producers, critics continue pointing to the negative effects during the 2002 steel tariffs imposed by the Bush administration. They cost jobs in related and other industries and directly hurt ports throughout the country.
According to Laura Baugham, president of the Trade Partnership in Washington, the downstream costs will have real effects in Midwest states. Additionally, the tariffs are increasing prices to consumers and influencing job losses in related and unrelated industries. The tariffs are also adding costs given the retaliation that it has initiated worldwide against unrelated products such as agricultural goods.
Additionally, other critics point to a preferred infrastructure spending bill to boost the US steel industry instead of tariffs.