Source: Bloomberg
by Scott Lincicome
“With great fanfare, President Donald Trump announced last week that ‘the largest steel plant ever built in the United States’ would be coming to Lee County, Iowa, adding that Mesabi Metallics’[s] $15 billion investment in a pivotal midterm swing state proved his ‘powerful 50% tariffs’ were working. He’s right: The announcement is a tangible result of American steel policy — but, contrary to what the president said, that’s not a good thing. Start with the project’s real price tag. Thanks to tariffs and other trade restrictions, US steel prices are among the highest in the world …. Because steel-consuming industries greatly outnumber steelmakers in the US, studies have repeatedly shown that steel tariffs, whether imposed by Trump in 2018 or George W. Bush in 2002, caused a net reduction in US manufacturing output and employment — effects that, in the latter case, persisted for years after the levies were lifted.” (10/08/26)