Today’s the day Donald Trump says he will hike tariffs on foreign steel and aluminum by up to fifty percent. Alabama reportedly imported eight millon tons of steel last year. Doctor Paul Simonson teaches supply chain management at the University of South Alabama. He’s not sure about the Trump administration’s belief that imposing tariffs will lead to more manufacturing jobs in Alabama. APR spoke with Simonson on the impact of tariffs and a recent ruling by the Court of International Trade. On the subject of future manufacturing jobs, he says the U.S. is already really good at it…
“Much of the job loss that we've had, and this has been statistically proven, is not because of trade, but it's because we just become so amazingly efficient at making things,” he said.
President Donald Trump told steel workers during a rally last week that he would double the tariff rate on steel to 50%. That’s a dramatic increase that could further push up prices for a metal used to make housing, autos and other goods. Trump made the announcement Friday at U.S. Steel's Mon Valley Works–Irvin Plant in West Mifflin, Pennsylvania, near Pittsburgh, where he announced investments by Japan's Nippon Steel. The price of steel products has increased roughly 16% since Trump became president in January, according to the government's producer price index. Trump later added that aluminum tariffs would also be doubled to 50% and said both tariff hikes would go into effect today. Treasury Secretary Scott Bessent hinted at more manufacturing jobs in Alabama during a appearance on CBS’ Face The Nation. Peter Simonson doesn’t sound sure that will happen. Responding to a question from APR prior to Bessent’s comments, Simonson said manufacturing is so good in the U.S. that fewer workers are needed….
“We produce as much or more manufacturing goods than really we ever have, but we're doing it with far fewer people, and we are much more efficient at producing than even the Germans,” he said.
Alabama’s Mercedes Benz and Hyundai plants reportedly used imported steel to help build six hundred thousand cars last year. Trump is also dealing with a plan to give Nippon Steel control of U.S. Steel. It's unclear, though, if the deal his administration helped broker has been finalized or how ownership would be structured. Nippon Steel has never said it is backing off its bid to outright buy and control U.S. Steel as a wholly owned subsidiary, even as it increased the amount of money it promised to invest in U.S. Steel plants and gave guarantees that it wouldn't lay off workers or close plants as it sought federal approval of the acquisition.
