Many people are mystified as to why the US would put these 25% tariffs on Steel and Aluminum on our allies (The EU, Mexico and Canada)
“Why would Trump want to start a trade war?” they say over and over as they scratch their heads.
Well, let me suggest to you a possible and very likely reason: The military.
Currently, the US military budget is 700 billion + —–more than the rest of the world combined.
Right now, as it stands, the US taxpayers are the ones paying for that. (for the most part)
Now—-what are these tariffs on? Aluminum and Steel—-and who needs aluminum and steel to make planes, weapons and structures?
Why the military of course!
Think about this: The US has over 800 military bases in 150 countries—-and Trump campaigned on getting the wealthy countries that benefit from our “Military Umbrella” to “Pay their fair share.”
Well, by taxing EU, Canada and Mexico on their Steel and aluminum imports we are in essence making these countries lose revenue. so these tariffs are being used as a bargaining chip to get other countries to pay more for the “Military umbrella” we provide—-or suffer the consequences.
Tariffs WILL make all of the military equipment and planes more expensive to make——–that will make foreign steel and aluminum less competitive/encourage the redevelopment of Us steel and aluminum. This will weaken the economies of the countries who have been piggybacking on the US taxpayers(Who are paying for the military protection of their countries.)
These tariffs will also make it possible for the US to have more factories, more manufacturing —another thing Trump and his people campaigned on.
(Bringing back our manufacturing base.)
I believe that is ONE of the main reasons these tariffs are going forward.
I also believe this is why The EU and Canada are so upset—they know how big the US military budget is, how big the market is and how these tariffs will make their products less marketable in the US and anywhere they are made.
“But why aren’t we imposing these tariffs on China?”
Because we do not have military bases in China !
Also we need China’s help in making a deal with North Korea. So they are being spared this tariff—-as is South Korea.
Remember—look past all the BS in the media in regards to Trump and remember–he is a business man. He is using the tools at his disposal to negotiate BETTER DEALS.
Tariffs are one tool he has to pressure countries to do what we want—-and I think it is unfair that American taxpayers are paying such a huge % of our budget to protect the whole world at the cost of our own infrastructure and social programs.
In my opinion, It’s time for The EU and Canada and Mexico to pay for their own defense!
If they want the US to stay, they need to pay us, or be prepared to lose a sizeable % of the market involved in building the military infrastructure that protects them .