Steel Profits Gain, but Steel Users Pay, under Trump’s Protectionism
Image Source: 
PIIE/William Melancon

Gary Clyde Hufbauer (PIIE) and Euijin Jung (PIIE)

Higher steel prices resulting from President Trump's steel tariffs will raise the pre-tax earnings of steel firms by $2.4 billion in 2018. But they will also push up costs for steel users by $5.6 billion. These actions also create 8,700 jobs in the US steel industry. Yet for each new job, steel firms will earn $270,000 of additional pre-tax profits. And steel users will pay an extra $650,000 for each job created.

Photo Credit: 
PIIE/William Melancon