Zincanator wrote:Any insight on whether or not the anticipated Trump tariffs on steel and aluminum imports will affect PM markets?
These things are often more complicated than they first seem. Also, beware of the law of unintended consequences, black swans, etc.
Per data on the census.gov site, here are (ranked from top to bottom) the top 10 sources for steel imports by dollar amount imported for calendar year 2017. To get to the data on the census.gov site, click on Business & Industries/Foreign Trade. Look for Dec. 2017 data and go over to the right to find totals for 2017. My numbers here are in millions of dollars:
1. Canada $5,119 (17.6% of total imports)
2. Korea $2,785 (9.6%) (likely includes lots of autos)
3. Mexico $2,501 (8.6%)
4. Brazil $2,442 (8.4%)
5. Germany $1,833 (6.3%) (lots of German autos)
6. Japan $1,657 (5.7%) (lots of Japanese autos)
7. Russia $1,431 (4.9%) (I'm surprised that we imported even that much steel from Russia- if it comes from Eastern Russia, perhaps it goes to Alaska and Hawaii??)
8. Taiwan $1,261 (4.3%)
9. Turkey $1,182 (4.1%)
10. China $976 (3.3%)TOP 10 (72.8% OF WORLDWIDE IMPORTS)
I've also heard rumblings that we don't want to upset the whole world so we will use selective enforcement on tariffs. In other words, we will penalize China but perhaps not Canada.
I've also heard that China has been cheating the system for decades so their threats of retaliation are going to be difficult for them to do anything about. Think about it this way- if they have already been cheating, what else can they do? They are in a bind and they don't want to have millions of unemployed workers sitting around thinking about how to overthrow the government.
One thing that does bother me is that if this ends up being inflationary in any way, then so much for the recent tax cuts.
I do like the theme of "draining the swamp", as Trump has called it, but when he comes out and makes a statement that these trade wars will be simple to win, I cringe. I wish the guy wouldn't be so over the top. Maybe that is part of his plan for some reason, but tact and maturity would go a long way without ruffling so many feathers.
Also, you wonder if on some of Trump's recent travels that he hasn't secretly told the leaders of those countries what to expect, and perhaps even to get "very upset" on the national stage in order for things to work out a different way behind the scenes. I am not exactly trusting of the government- and that applies to both parties and practically all countries.
My, this thread certainly got far astray from the original subject of the price of silver. Sorry about that.