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Industry continues to oppose tariffs

5/2/2018
The industry continues to respond in opposition to the ongoing tariffs on imported steel and aluminum.

President Trump imposed a 25% tariff on steel and 10% tariff on aluminum, taking effect March 23. But Canada, Mexico and the European Union have been temporarily exempted from the tariff. The exemption was recently extended through June 1.  Argentina, Australia, Brazil, and South Korea are permanently exempted, with the latter agreeing to a mutual quota system.

But nearly one-third of all U.S. steel imports remain subject to the tariffs.

The National Lumber and Building Material Dealers Association (NLBDA) has maintained its opposition to the tariffs. In its most recent statement, the NLBMDA said the tariffs will result in increased construction costs, decreases housing affordability, and can cause an unnecessary trade war that harms consumers.

“NLBMDA opposes tariffs on steel imports,” said NLBMDA Chair Rick Lierz, president and CEO of Franklin Building Supply in Boise, Idaho. “Increasing the cost of building materials simply hurts builders and ultimately consumers.”

Compounding the situation for pro dealers are duties between 24% and 10%, which remain in effect on Canadian softwood lumber imports.

A recent study by The National Retail Federation (NRF) and the Consumer Technology Association (CTA) proposed a scenario that could result in a disaster for the U.S. economy.

According to the study, proposed tariffs on $50 billion of Chinese imports, followed by the retaliation promised by China, could reduce U.S. gross domestic product by nearly $3 billion and destroy 134,000 American jobs. The report finds that four jobs would be lost for every job gained.

“As administration officials prepare to head to China for trade talks, the livelihoods of American workers hang in the balance,” NRF President and CEO Matthew Shay said. “We hope this is the start of a serious negotiation process that leads to a more open Chinese market and protects U.S. jobs and economic growth. We must resolve this trade dispute without resorting to job-killing tariffs and retaliation.”

The study also warns that imposing tariffs on an additional $100 billion of Chinese imports could destroy 455,000 jobs and reducing GDP by $49 billion.

“Tariffs could wash away the benefits recent tax reform will have on the economy, bringing uncertainty to American businesses and devastation to some workers in key states – they might lose their jobs over a trade tax,” CTA President and CEO Gary Shapiro said. “Rising costs on farmers, manufacturers and service providers isn’t the answer; it shows protectionism will weaken America.

 

 
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