Tariffs on Aluminum and Steel Lead to Wins and…Failures
, professor of economics in the Maxwell School, was quoted in stories about tariffs and the trade war in several outlets includingÂ
In the Trade War between the U.S and China tariffs have been imposed on aluminum and steel. Lovely explains the tariffs having their pros and cons depending on the company. She states, “The companies that use steel, like aluminum can manufacturers, or companies that make steel vats for pharmaceuticals or the dairy industry, they’re going to be hurt by this.” Higher costs will force some of them to raise prices, hurting their sales, she notes.
The outlook is different for companies that must buy steel, she says. Tariffs make imported steel more expensive, which means domestic producers don’t have to worry as much about price competition and can increase what they charge customers. That could lead them to hire more workers and invest in new production, Lovely adds.
“The tariffs are working exactly the way we would expect them to. They’re going to produce winners and losers,” she says.