Serious economics question

[pumpf]

I've been reading about how Trump's tariff on imported steel is causing big problems for some companies (most notably Harley Davidson).  The cost of doing business is going way up.  Now, as I've said numerous times: I don't understand anything beyond simple economics (i.e. "supply and demand").  So, here's my question: Wouldn't the tariff on imported steel benefit our own steel companies?  Or is our "domestic" steel way too expensive? 
Can anyone explain it to me (like they were explaining it to a 10 year old)?

[Guest]

Ill take a stab at it. 

Tariffs generally speakkng arent a good thing. If there is more tax on a product whether that tax is domestic or international the cost will be passed onto the consumer. 

The silver lining is that we’re finally after 20+ yrs of getting screwed by other countries tariffs weve finally gotten to the negotiating table. We’ll find out if the twitter in cheifs “art of the deal” negotiating skills are worth a darn or not. 

On harley one needs to only watch the south park harley/F@g episode to understand whats wrong with theor brand. Young people have no desire to own an over priced, under preforming, loud as F machine. Older folks who see/saw the brand as a status symbol but are now getting to where they cant or wont ride the bikes. Harley will be dead and gone in a decadeish amount of time. 

[Guest]

The tariffs impact almost everything made of steel: price increases are being implemented as we speak and the consumers will be feeling it in retail very soon.  As it relates to Harley Davidson...its a dying brand. Its been fading and as mentioned, Millennials have zero desire to buy something like one of their motorcycles. I'm sure they've been looking for ways for awhile now to lower their costs. The U.S. is currently still at historically high rates of importing steel, but that should slowly start to change and yes, domestic steel providers should benefit from this. 

[Guest]

Ha ha:

Harley Davidson CEO Matthew S Levatich says:

"Our decision to move some of our operations is 100% based on President Trumps tariffs. Mr. Trump knows nothing about economics and even less about trade. The man is a moron."

[Guest]

@StickyBun said:
Ha ha:

Harley Davidson CEO Matthew S Levatich says:

"Our decision to move some of our operations is 100% based on President Trumps tariffs. Mr. Trump knows nothing about economics and even less about trade. The man is a moron."

Uh oh. How long before Trumpkins start calling for a Harley Davidson boycott? 

[Guest]

"We see tremendous opportunity particularly in Southeast Asia," CEO Matthew Levatich said in April. "We need to be there and be relevant and grow our share."

@pumpf said:

Can anyone explain it to me (like they were explaining it to a 10 year old)?

They don't have to pay kids $13 an hour to make them there.  :/

[Guest]

@MaroonBells said:

@StickyBun said:
Ha ha:

Harley Davidson CEO Matthew S Levatich says:

"Our decision to move some of our operations is 100% based on President Trumps tariffs. Mr. Trump knows nothing about economics and even less about trade. The man is a moron."

Uh oh. How long before Trumpkins start calling for a Harley Davidson boycott? 

the only thing louder and more obnoxious then trump is a harley lol

[Guest]

the shits of the tariffs... the american steel mfgs announced price increases almost immediatley after trump announced his tariffs... instead of using the tariffs to gain back market share,  american steel is using it to push up their margins.  they did the same shit when obama implemented his buy american standards... the american companies dont want more work...just more profits.  unfortunately its the american consumer that has to foot the bill. 

I am all for imposing tariffs to balance the trade deficits,  but if the people those tariffs benefit try to take advantage of the protections they are granted then the govt needs to slap the shit out of those companies.

the steel tariffs imo are a good thing for a lot of american workers that are in economically depressed parts of the country,  but the repercussions of these tariffs will likely be targeting other things like the ag producers which are already reeling from record high input costs and historically low margins... or even losses.  everybody looks at the stock market as an indicator of how America is doing.... well its only one piece of the economic barometer.... rural America is struggling and that is a lot of hard working families that the evening news seems to ignore.

[Guest]

Steel is not a monolithic product.  Steel producers have stratified their production, each country has a niche market.  British steel is used almost exclusively in automotive frame, Chinese in high grade structural.  It's not a zero sum market.  American steel in automotive production crosses international boundaries like 8 times before it's fully incorporated into the vehicle.

[Guest]

This was helpful to me:

https://www.bustle.com/p/john-olivers-tr...s-10164291

http://time.com/5371469/john-oliver-last...ght-trade/

Trying to find the entire video without much luck, but this is the crux of it. Also, checkout Andrew Navarro...He's not exactly who you'd want advising anyone...