2 years ago

President Trump’s tariffs mean higher prices and fewer jobs — Heritage Foundation

(Gage Skidmore/Flickr)

 

(Opinion) It got relatively little attention at the time, but two proclamations that President Trump signed in January could have a large effect on your wallet.

The proclamations in question impose tariffs and quotas on imports of solar cells and modules, large residential washers, and washer parts. Solar cells and modules will see a tariff of 30 percent after the first 2.5 gigawatts. Washers will be tariffed at 20 percent for the first 1.2 million units, and then at 50 percent for all additional imports. Washer parts will have a tariff of 50 percent after 50,000 units.

These tariffs are a major misstep by the administration. They will negatively affect Americans in at least the following five ways.

Fewer Jobs.

The Solar Energy Industries Association estimates that these solar tariffs “will cause the loss of roughly 23,000 American jobs this year, including many in manufacturing, and it will result in the delay or cancellation of billions of dollars in solar investment.”

Jobs at Sears Corp., a major supplier of washers in the U.S., are also at risk as a result of the tariffs on washers.

Sears recently awarded a contract to LG for the production of some of Sears’ own Kenmore brand of washers. LG’s Kenmore washers are imported from South Korea, a U.S. trade partner that was not exempt from the president’s actions. Making it more expensive for LG to import the washers it produces for Kenmore, one of Sears’ most popular product lines, will jeopardize the retailer’s efforts to revitalize its brand.

Higher prices.

During a recent Heritage Foundation event, Paul Nathanson — a partner at the Policy Resolution Group at Bracewell LLP, a Houston-based international law firm — noted that “the purpose of tariffs is to raise the price of a product.” This statement is already proving to be true.

memo from LG to U.S. retailers relayed that “[a]s a result of the trade situation, we will be initiating pricing actions, which will be sent under separate cover shortly.” LG is expected to “raise published retail prices on at least some of its washer and dryer models by approximately $50.”

 Fewer choices.

A common misconception with the new tariffs is that they target unfairly traded goods from China.

While imports from China will be restricted, these tariffs actually apply to imports from every country. The only exception is Canada, which was exempt from the tariffs on washers. This means that imports of solar panels and modules, as well as washers, will be penalized even if they are being sold at market value.

The debate over tariffs boils down to whether government should override consumer choices in the marketplace. Limiting choices for solar panels, modules and washers for Americans forces them to pay more for what is available.

Retaliation from trading partners.

Following President George W. Bush’s decision to impose tariffs on steel imports in 2002, the European Union threatened to retaliate with tariffs on American goods from vital states for the next presidential election, such as orange juice, textiles, and Harley-Davidson motorcycles.

Within days of Trump’s new tariffs on solar panels, modules, and washers, South Korea—one of America’s free trade partners—filed consultation requests with the World Trade Organization. According to the Financial Times: “South Korea’s request for consultations means that, unless it backs down in the next 60 days, the U.S. will face a potentially bitter fight at the [World Trade Organization].”

More tariffs in the future.

Imposing tariffs unilaterally sets a dangerous precedent. Tariffs should not be used to reward companies and industries that prioritize lobbying the government over innovation.

With these tariffs, the administration has opened the door for more companies to petition the International Trade Commission for tariffs to protect their own special interests.

The U.S. government has self-initiated investigations into imports of steel and aluminum imports under Section 232 of the Trade Expansion Act, a law that allows the president to impose tariffs for national security reasons. A decision on steel and aluminum tariffs is expected in the coming weeks.

While we will not know the full consequences of these tariffs for many months, the choice to reward special interests over the American economy as a whole was a poor one. It should not be the role of the president, or Congress, to tip the scale toward one American industry or interest group over another.

Let’s hope these tariffs are removed before too much of the projected damage is done.

 

(Tori K. Whiting is a research associate in The Heritage Foundation’s Center for International Trade and Economics.

3 mins ago

State Sen. Elliott vows another attempt at bill labeling offenses involving those attempting harm on law enforcement as a ‘hate crime’

Last week, Huntsville STAC Agent Bill Clardy III was shot and killed in the line of the duty, making Clardy the sixth such death in 2019 for Alabama and reflects an alarming trend for the state.

Earlier this year, State Sen. Chris Elliott (R-Daphne) pushed for legislation that would include law enforcement employment as a protected class, just as race, color, religion, national origin, ethnicity, or physical or mental disability are.

However, the bill got bogged down in the Senate Judiciary Committee and never made it to the floor of the Alabama Senate for a vote. On Tuesday, Elliott told WVNN’s “The Jeff Poor Show” that he will take another shot at the legislation in 2020.

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“It got bogged down in committee,” Elliott explained. “It got some amendments on it in committee that really made it untenable to get to the floor. And I think we’re going to give that a try again, and I anticipate it getting to the floor without any other amendments. You’ll recall those amendments were making other things a hate crime as well. I think what we need to do is take this one step at a time and address the issue at hand as opposed to try to bog it down with amendments.”

“I mean, all law enforcement officers deserve better than a bill that is festooned with other amendments,” he added.

Elliott said his renewed effort on the legislation would be done out of respect to those slain officers.

“Any time you start loading up a bill with amendments like that, it becomes a problem,” Elliott said. “But whether you’re talking about Officer Clardy or Justin Bila here in Mobile, or a couple of years ago Baldwin County Sheriff’s Deputy Scott Ward or others — you know, those guys deserve a clean bill and something we absolutely have a priority on.”

@Jeff_Poor is a graduate of Auburn University, the editor of Breitbart TV and host of “The Jeff Poor Show” from 2-5 p.m. on WVNN in Huntsville.

37 mins ago

Birmingham, Mountain Brook declared ‘TraffickingFree Zones’

On Tuesday, the cities of Birmingham and Mountain Brook announced that they have declared themselves “TraffickingFree Zones” in advance of the World Games that will be held in Birmingham in 2021.

Birmingham is the most populous city in America to make the declaration. The two cities join Vestavia Hills in proclaiming vigilance against the blight of human trafficking.

The proclamation requires all city staff to receive training on human trafficking and formalizes the cities’ “zero-tolerance” policy on buying sex at work.

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The proclamation asserts the flood of new people brought to the Birmingham area for the World Games could mean “an increase in tourists seeking entertainment, including commercial sex, increasing the potential risk for exploitation and human trafficking.”

“The first step in eliminating human trafficking in our community is to educate others,” the proclamation goes on to say.

The TraffickingFree Zone program the two cities are joining is a nationwide initiative of the U.S. Institute Against Human Trafficking (USIAHT).

Birmingham Councilor Crystal Smitherman, resolution sponsor, said, “Birmingham was the epicenter of the Civil Rights movement 60 years ago, and we once again have the opportunity to lead the nation in the fight for civil and human rights. We as a city take this issue incredibly seriously, and look forward to working with the countless trafficking organizations that make up the Child Trafficking Solutions Project on future endeavors to end child trafficking and keep our children safe.”

Mountain Brook Mayor Stewart Welch remarked, “The City of Mountain Brook takes this issue very seriously, and we vow to train our entire city staff, including first responders, to ensure that our children are safe and that our community is informed about human trafficking and what to do if they suspect a case of human trafficking.”

“The community response to the TraffickingFree Zone initiative is a testament to how seriously the entire Birmingham community, and the state of Alabama, is taking the issue,” advised USIAHT CEO Geoff Rogers.

Additional support for the movement comes from a Birmingham-area anti-trafficking coalition, the Child Trafficking Solutions Project (CTSP). The CTSP, which will handle the groundwork for the staff training, is a collaboration between the Children’s Policy Council and the Jefferson County Family Court.

Jordan Giddens, community engagement coordinator for the CTSP, said, “Our coalition, representing over 50 organizations across the Birmingham metro has worked tirelessly to saturate the entire Birmingham community with anti-trafficking awareness, and we are overjoyed that municipalities across the entire state are taking the steps to declare themselves a TraffickingFree Zone.”

Henry Thornton is a staff writer for Yellowhammer News. You can contact him by email: henry@yellowhammernews.com or on Twitter @HenryThornton95.

3 hours ago

7 Things: Two articles of impeachment, polling has Sessions still up, Trump gets trade win and more …

7. Biden is still first, but Warren is falling

  • New polling data from the Quinnipiac University has been released that shows former Vice President Joe Biden is still in first place with 29%, but U.S. Senator Bernie Sanders (I-VT) has moved up into second with 17%.
  • U.S. Senator Elizabeth Warren (D-MA) has fallen to third place with 15%, South Bend Mayor Pete Buttigieg is down to 9%, New York Mayor Michael Bloomberg follows with 5% and entrepreneur Andrew Yang has 4%.

6. Stopping the spread of misinformation

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  • Alabama Secretary of State John Merrill has met with Twitter and Facebook representatives in an effort to stop misinformation from spreading online throughout the state in preparation for the upcoming 2020 election cycle.
  • Merrill said that it’s important that everyone in Alabama is “informed with up-to-date, complete, and accurate information.” Merrill added, “[E]lection security and protocol is higher than ever in Alabama. We continue to introduce new ways to improve security every single day.”

5. Ainsworth has endorsed Ward

  • Lieutenant Governor Will Ainsworth took to Twitter to endorse State Senator Cam Ward (R-Alabaster) for the Alabama Supreme Court. Ainsworth confirmed the endorsement, saying, “I am supporting his candidacy and encourage my friends to do the same.”
  • Ward responded to Ainsworth’s endorsement by saying he’s “honored” to have the support and that Ainsworth “knows my legislative record and the conservative values I will bring to our Supreme Court.”

4. Tuberville doubles down on his reasonable drag queen take

  • When former Auburn football coach Tommy Tuberville expressed that a Christmas parade may not be the appropriate place for a drag show, you knew the media would take the bait and attack him for it.
  • In response, Tuberville further explained that a parade designed for children isn’t really the place for this stuff. He stated, “Christmas is about celebrating with family,” adding, “Our public celebrations ought to be family-friendly for young and old.”

3. Democrats are supporting trade agreement

  • The United States-Mexico-Canada Agreement (USMCA) is now supported by House Speaker Nancy Pelosi’s (D-CA) caucus, which is the trade agreement that would replace NAFTA.
  • Pelosi’s announcement of her support comes only one day after Alabama Senate President Pro Tem Del Marsh (R-Anniston), House Speaker Mac McCutcheon (R-Monrovia), State Senator Gerald Allen (R-Tuscaloosa) and State Representative Wes Allen (R-Troy) sent a letter to Pelosi pushing for her to support the trade agreement.

2. New polls in Alabama Senate race

  • The Alabama Farmers Federation has released new polling data that shows former Attorney General Jeff Sessions and former Auburn Football Coach are polling closely, with Sessions at 35% and Tuberville at 31%, whereas data released by the Sessions campaign showed that Sessions was at 44% and Tuberville was at 21%.
  • The Farmers Federation data also showed that U.S. Representative Bradley Byrne (R-Fairhope) is at 12%, former Alabama Supreme Court Chief Justice Roy Moore is at 8% and State Representative Arnold Mooney (R-Indian Springs) and Stanley Adair are only at 1% each.

1. Abuse of power and obstruction

  • The House Democrats have announced formal articles of impeachment they’re bringing against President Donald Trump, which are abuse of power and obstruction of Congress. In doing so, U.S. Representative Jerry Nadler (D-NY) said that Trump “endangers our democracy; he endangers our national security.”
  • U.S. Representative Bradley Byrne (R-Fairhope) responded to the articles of impeachment, saying it’s “nothing more than a pathetic witch hunt.” U.S. Representative Robert Aderholt (R-Haleyville) said that the “charges are so political, not even all their members will be able to stomach voting for them.”

4 hours ago

Mo Brooks: Obama’s attack on law enforcement tied to spike in police killed in the line of duty

On Friday, another Alabama police officer was shot and killed in the line of the duty, which was the sixth such death in 2019.

Huntsville STAC Agent Bill Clardy III was shot and killed. LaJeromeny Brown, the suspect behind the killing, was charged with capital murder. Clardy’s death is the latest in an alarming trend of law enforcement officers killed while on the job.

During an appearance on Huntsville radio’s WVNN on Tuesday, Rep. Mo Brooks (R-Huntsville) expressed his frustration over the circumstances surrounding Clardy’s murder. He argued there was more elected officials could do to reverse the trend.

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“It saddens me,” Brooks said on “The Jeff Poor Show.” “It angers me that we allow criminals to stay on our streets as long as we do with the kind of records that they have. If media reports of this man’s record are correct, he should never have been in a position where he could have been exposed to the public or where he could have murdered one of our police officers. I think it is good [U.S. Attorney for the Northern District of Alabama] Jay Town is looking into … why this man was at large when he should have been in a penitentiary somewhere serving a long, long sentence. So I am frustrated with our judicial system, and I just hate what happened. And I feel for the family.”

“A lot of this is what we’ve seen over the last decade or so where we’ve seen some political elements that seem to be anti-law enforcement,” he continued. “The more get public officials making anti-law enforcement statements, the more you’re encouraging people to resist law enforcement officers, even to the point of pulling out a gun and people getting killed. There is so much to it that frustrates me as an elected official, and so many things we as a society could be doing better to protect innocent Americans on the one hand and our brave law enforcement officers on the other.”

The Madison County Republican argued for one policy prescription, which was a review of how public officials support and publicly speak about law enforcement. Brooks pointed to former President Barack Obama’s rhetoric and how he handled some high-profile officer-involved incidents, which, according to Brooks, has created an environment more difficult for law enforcement.

“We need to have more public officials who support law enforcement,” Brooks explained. “Keep in mind that under the last administration — I hate to be so partisan, but this is the truth of the matter — under the last administration, any time a law enforcement officer did what he needed to do to protect the public, and an individual was killed in the following fray, the Obama administration would immediately attack law enforcement, and that kind of jumping to a conclusion that Barack Obama did so frequently and his attacks on law enforcement, and his support for African-Americans for no reason apparently other than they were African-American — it wasn’t about whether they were guilty or not. We saw what happened with Ferguson, Missouri, where the Obama administration immediately came to the defense of the African-American who was killed, attacked the law enforcement community, and then later on it turned out that this guy was a thug and just finished committing a forceful robbery.”

“Another follow-up on that is what happened in Texas where an African-American probably emboldened to some degree by these anti-law enforcement statements of elected officials decided to go on a killing rampage, and his targets were two types of people: law enforcement officers and whites,” he continued. “And that is what he said. Words are important. And our elected officials — if they don’t want anarchy, if they don’t want crime to rule, then they better be a whole lot more forceful in protecting our law enforcement officers and backing them up, or else you’re going to see more of this.”

@Jeff_Poor is a graduate of Auburn University, the editor of Breitbart TV and host of “The Jeff Poor Show” from 2-5 p.m. on WVNN in Huntsville.

4 hours ago

Aderholt bashes partisan impeachment charges, reaffirms support for USMCA

On Tuesday, U.S. House Democrats announced two impeachment charges will be filed against President Donald Trump and then later in the day declared that they have a reached a deal to support the Trump-negotiated United States Mexico Canada Agreement (USMCA).

Republican Congressman Robert Aderholt (AL-04) reacted to both developments, first tweeting his continued opposition to impeaching the president.

No Republicans are expected to vote for the impeachment charges, as the real question is how many Democrats will break ranks by either abstaining from voting on or opposing the charges.

Speaking about his Democratic colleagues, Aderholt concluded, “These impeachment charges are so political, not even all their members will be able to stomach voting for them.”

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Aderholt on Tuesday later issued a statement regarding the latest news about the USMCA, which is the trade deal negotiated by the Trump administration that would replace NAFTA.

“Since coming to Congress, my focus has been on growing our local economy and bringing the best jobs to this area. This USMCA agreement will allow our region to continue building on our already strong economy,” he advised. “This agreement is a win for Americans across the country and in the State of Alabama.”

The dean of Alabama’s House delegation commended the president for his leadership on the USMCA.

“I congratulate President Trump for negotiating this agreement, and I look forward to working with him to continue building on our historic economic expansion,” Aderholt said. “By persuading Canada and Mexico to revise the outdated NAFTA agreement, and then negotiating on labor issues with Democrat leadership, President Trump has secured a trade deal which will establish a level playing field that keeps America competitive.”

Aderholt pointed to specific sectors of Alabama’s and his district’s economies expected to benefit from the USMCA.

“The automobile and agriculture industries are two of the biggest drivers of economic development in the Fourth Congressional District of Alabama. In 2017 alone, Alabama had more than $7 billion in exports to Mexico and Canada,” he outlined. “The USMCA agreement expands access for U.S. exports of chickens and eggs. As the representative of one of the largest poultry producing districts in the nation, I can say there is no doubt USMCA is a win for Alabama’s farmers.”

“According to an April 2019 report by the U.S. International Trade Commission, USMCA is estimated to increase U.S. production of automotive parts and employment in the sector. I have repeatedly called on House leadership to bring this deal to the House floor and look forward to supporting it,” Aderholt concluded.

A vote on the USMCA has been scheduled in the House for next week, however the impeachment process driven by House Democrats might actually stall ratification in the Senate after that.

Assuming the two charges get enough Democratic votes to pass the House and Trump is impeached, Senate Majority Leader Mitch McConnell (R-KY) has already said he will not take up the USMCA until the impeachment trial has concluded in the upper chamber.

Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn