What you need to know about local, political impact
Alex Pazkowski demonstrates tig welding technique to students. Pazkowski teaches Shielded Metal Arc Welding (SMAW) where the class uses steels and consumables provided by companies in Michigan. Beck Elandt | The Washtenaw Voice
Beck Elandt | Staff Writer
President Donald Trump ran on a tariff promise. As tariff policies begin, here’s some information about what they are, effects and how they will impact students.
Political
President Donald Trump signed three separate executive orders, imposing tariffs on goods coming into the U.S. from Mexico (25%), China (10%) and Canada (25% apart from Canadian energy resources, such as oil, gas, and electricity tariffed at a lower 10%).
However, separate negotiations between the president of Mexico, Claudia Sheinbaum, and the prime minister of Canada, Justin Trudeau, resulted in a 30-day postponement of each policy, not concerning the policy for China, effective on Feb. 4, according to the Associated Press.
Already, retaliatory tariffs have been issued from China, effective on Feb. 10, and retaliatory tariffs are likely from Mexico and Canada after the 30-day postponement.
An official White House fact sheet explained the reasoning behind the three tariffs: “The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency.”
Trump signed a 25% tariff on all steel and aluminum imports coming into the U.S. on Feb. 10 On Feb. 13, a reciprocal tariffs policy, meaning any foreign countries that impose tariffs on the U.S. should be met with equal and opposite tariffs.
The Trump administration means to foster a reliance on industries in the U.S. by bringing manufacturers to American soil, thus promoting jobs and making the country more self-sufficient.
Economical
To better understand what is happening, a common misconception about tariffs is who pays up.
“The company that orders the goods has to pay the tariffs,” said Douglas Langs, professional faculty of economics at WCC.
“They can choose between increasing the price of the product or taking a loss,” and most of the time, it’s the former,” he said.
Langs noted that a reason we impose tariffs is to protect domestic jobs as this raises the price of foreign goods, thus boosting industries within the U.S. and denoting the industries of foreign countries.
A CFR.org article, written by Shannon K. O’Neil and Julia Huesa, helps us visualize the relationship between recent tariffs and trade: “Canada stands to take the biggest hit as the top U.S. supplier of imported aluminum and steel. Over half of U.S. aluminum product imports come from its northern neighbor, far more than from the United Arab Emirates (UAE) and China, the next largest sources.”
In conjunction with this, the U.S. imports only around 24% of the steel it uses, but most of this accounts for specialty types of steel that can withstand high temperatures and pressures; necessary imports for auto, aerospace, construction and energy industries.
“Mexico is the largest supplier of fruit and vegetables to the U.S.,” according to CNN on the impact tariffs will have on food. Last year, the U.S. imported over 46 billion dollars of agricultural products, in part because climate change has made growing conditions in Mexico more favorable. Fresh fruits alone accounted for 9 billion dollars, close to the amount accounted for beer (5.9 million dollars).
Local
When it comes to steel and aluminum used on campus, a clear example is the welding and fabrication program.
Joe Ortiz, an instructional lab assistant, orders the program’s resources almost exclusively from American manufacturers.
“We use a couple different ones, but as far as our metal goes, we use Alro,” said Ortiz, referencing Alro Steel, a nationwide manufacturer in Jackson, MI.
When it comes to price, Ortiz references a time during the pandemic when steel wasn’t cheap, but the program was fortunate enough with their budget to be able to offer materials for students to use to learn.
With the possible trajectory of car manufacturers creating factories in the U.S., there could be a promising future for welders, a skill already in high demand.
From the standpoint of a consumer, the resulting tariffs will likely drive up prices on foreign goods and, while the U.S. continues to plan and negotiate foreign relations, it’s uncertain whether the U.S. will have to face inflation and unemployment or be cradled by job security and independence.
