Trump’s Protectionist Rube Goldberg Machine
The Trump administration is offering some countries a reprieve from US import tariffs in exchange for self-imposed export quotas, while allowing domestic producers to apply for tariff exemptions. Because this approach will weaken competition and cause delays, the predictable result will be higher costs and reduced quality control.
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WASHINGTON, DC – To avoid the Trump administration’s 25% tariff on imported steel, some countries have agreed to accept export quotas on 59 varieties of steel products. At the same time, the administration has declared that US manufacturers that use steel as an input may apply for tariff exemptions from the Department of Commerce if they are unable to source the specialized products they need domestically.