On March 1, 2018, just a few hours ago, Trump has announced that the USA will have a 25% tariff on steel and a 10% tariff on aluminum
Bush tried the same thing back in 2002. The result was a collapse in the US dollar. The dollar index (DXY) fell straight down for two whole years, falling from around 120 to about 81.
dollar fell hard.
It turns out that Trump just announced that he will impost tariffs on steel and aluminum. Will history repeat itself? Will the smoggy industry "come back" to the US of A?
Maybe this will bring the steel companies back to the USA because the USA's dollar will be cheaper than other country's dollar; however, do you think steel companies will use "old" industrial methods like in the old days back in the 1950s or do you think they will milk the USA for all its worth with the advent of robotic technology? They might come back, but maybe just in the form of automation.
Imports will become more expensive and demand for them will wane. People will attempt to buy locally grown material.
The US Dollar has fallen already for one whole year since 2017. This negative dollar policy is in alignment with Trump's agenda. Politicians can make political decisions globally and locally to move a currency in their favor to implement whatever political and sometimes economic agenda they intend to go after. The US treasury said in January that a lower dollar is ok, as well.
However, it will force people to spend less on import (maybe), travel less abroad and spend less abroad. This may attract more tourists to the USA if they feel safe coming to the USA even after the mass shootings and terrible stigmas and stories regarding police brutality. We shall see in this new chapter of the beginning of and era; the global pivot and global shift in power to the Eastern world (Asia).
Source material:
(1) ( https://www.cbsnews.com/amp/news/trump-institutes-steel-and-aluminum-tariffs-live-stream/ ).
(2) https://twitter.com/Scotiabankfx/status/969311792181768192
Bush tried the same thing back in 2002. The result was a collapse in the US dollar. The dollar index (DXY) fell straight down for two whole years, falling from around 120 to about 81.
dollar fell hard.
It turns out that Trump just announced that he will impost tariffs on steel and aluminum. Will history repeat itself? Will the smoggy industry "come back" to the US of A?
Maybe this will bring the steel companies back to the USA because the USA's dollar will be cheaper than other country's dollar; however, do you think steel companies will use "old" industrial methods like in the old days back in the 1950s or do you think they will milk the USA for all its worth with the advent of robotic technology? They might come back, but maybe just in the form of automation.
Imports will become more expensive and demand for them will wane. People will attempt to buy locally grown material.
The US Dollar has fallen already for one whole year since 2017. This negative dollar policy is in alignment with Trump's agenda. Politicians can make political decisions globally and locally to move a currency in their favor to implement whatever political and sometimes economic agenda they intend to go after. The US treasury said in January that a lower dollar is ok, as well.
However, it will force people to spend less on import (maybe), travel less abroad and spend less abroad. This may attract more tourists to the USA if they feel safe coming to the USA even after the mass shootings and terrible stigmas and stories regarding police brutality. We shall see in this new chapter of the beginning of and era; the global pivot and global shift in power to the Eastern world (Asia).
Source material:
(1) ( https://www.cbsnews.com/amp/news/trump-institutes-steel-and-aluminum-tariffs-live-stream/ ).
(2) https://twitter.com/Scotiabankfx/status/969311792181768192
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