Big gubmint’s forcing people to buy their steel, and increased the price they’re able to sell it at, and they can only call back 500 people?
You know either way it is a "Win-Win" situation.
A) Either the auto makers for example pay a tax of 25% on foreign steel... a tax passed on to us the consumers of in the case of an auto:
In 2009 a North American car weighing 3,755 pounds consisted of 17.1% steel or 642 pounds.
http://www.autosteel.org/~/media/Files/Autosteel/Great Designs in Steel/GDIS 2009/06 - Metallic Material Trends For North American Light Vehicles.pdf
Galvanized steel price per ton $300-600... worst case $600 or 30¢ per pound times 642 pounds= $192.00 PLUS tariff of 25% or another $48 for total of $240.00
Steel Price Per Ton, Steel Price Per Ton Suppliers and Manufacturers at Alibaba.com
What is the cost of average car in USA?
Average new car price zips 2.6% to $33,560
$33,560. What percent of the car costs is the 25% tariff at $48? 0.14%...less then one 2/10ths of 1%!
B) Or the automaker buys the steel from US Steel mill with NO tariff AND the 500 steel workers along with the company pay 13% in SS/Medicare taxes as well as income taxes.
Hmmmm...
Is there something here I'm missing?
Either we the consumers pay 2/10ths of 1% for foreign steel i.e. the tariff or we save that and the steel workers/employers pay 13% in SS/Medicare!
How is there a losing position?