Steel This Missive

Some episodes ago (and here), the notion that tariffs on foreign steel and aluminum would be born by those foreign countries was blown up. Americans pay the tariffs. End of story. Well, now we have some new data. Which proves the point, naturally.

But in the 10 months since the Trump administration imposed 25 percent tariffs on steel imports, prices in the United States have now fallen back to levels last seen before the tariffs were announced on March 1.

From the wiki:

In 2017, there were 9 operating integrated steel mills in the United States (plus one idled), down from 13 in 2000. Integrated mills produced 31% of the steel produced in the US.
[these mills make primary steel from ore]
...
There were about 112 minimills or specialty mills in the US, which in 2013 produced 59% of US total steel production. The specialty mills use iron and steel scrap, rather than iron ore, as feedstock, and melt the scrap in electric furnaces.

Is anyone surprised? I think not.

"Tariffs are taxes paid for by American families and American businesses — not foreigners," said Thomas J. Donohue, the president of the U.S. Chamber of Commerce.

I wonder? Is Donohue on the contact list of the Red Phone?

I wonder whether the American Enterprise Institute is on the contact list of the Red Phone?

Increased productivity means today's steel mills don't need as many workers. Steel industry employment peaked at 650,000 in 1953. By the start of this year, U.S. steelmakers employed just 143,000.