Trump has gotten us into a trade war. His “first strike” tariffs have not crippled the enemies into submission, but only sparked retaliatory strikes. We are now in a war of attrition that could go on indefinitely. Escalation of the war is probable with more tariffs, currency manipulations and less purchases of U.S. exploding debt. Russia has already dumped most of its holdings of US debt.
Bill Yeargin, CEO of the US boat manufacturer Correct Craft, warned about the consequences of Trump’s trade fights in an op-ed article. Rather than protect domestic manufacturers, the tariffs are being taken advantage of.
Correct Craft sources nearly all of the aluminum sheet used in its boats from the US — more than 90% according to Yeargin — but this has not protected the company from price increases. As domestic producers have seen foreign prices rise, so too have US aluminum producers used this new pricing power. According to Yeargin, the price of domestic aluminum has risen by 20% to 30% due to market distortions created by the tariffs.
Here is a detailed report on the trade war started by Trump and the damage we are suffering.