- Countries will respond, raising barriers to American goods, so many American companies will be hurt.
- Any/all companies in the US that use steel/aluminum as inputs will have to raise the prices of their goods, making them less competitive on world markets and more expensive to those who buy them (tis bad for the car industry, for instance). Others have pointed out that there are far more jobs and money in the businesses where people rely on steel/al products than in the production of steel and aluminum. This is like fucking over the solar industry for the very small coal industry.
- As a result, this may cause inflation (going along with huge deficit spending in a relatively booming economy).
- This will undercut the international institutions that the US built to, um, help the US. While these agreements/norms/institutions were built so that others would buy in, they were very much aimed at creating an international environment conducive for US businesses. Given that the World Trade Organization and other dispute panels have more often found in favor of American complaints than Chinese, for instance, this gutting of the trading order is not good.
- Steel is not coming back. The rust belt will not unrust.
- Protectionism like this always costs far more per job saved than what those jobs pay. In other words, this is a very inefficient way to help these workers. Better safety nets and training programs would be far better.
- Targeting allies is bad. This will hurt Germany, Japan, and Canada probably more than it hurts China and certainly far more than Russia. So, yeah, another example of Trump, stuck in the 1980s, hurting the US position in the world.
- Pretty sure all of that supposed infrastructure program (not to mention a wall) require steel, so the prices of such stuff will escalate.
Since tariffs are taxes, Congress does have a say. Will they undelegate the authority they delegated to the President? Will the GOP in Congress resist? Is this like the tax cuts or like the Russian sanctions? I have no idea since it requires Paul Ryan and Mitch McConnell to do the right thing. How likely is that?