Outside of their imposition through the normal trade-dispute system, that is. The latest evidence of that comes from Canadian softwood lumber, which has seen the U.S. government impose an approximate 20 percent tariff in April on its importation into the United States. The end result has been a steep rise in prices, about 25 percent, in that lumber.
This of course has a cascade effect, especially on new housing starts (lumber’s a major component of most any new housing). And because a tariff is, in effect, a tax on the consumer they also restrict a consumer’s options when purchasing a product. The tariff on Canadian lumber will probably also decrease the number of jobs in the housing construction industry if it’s allowed to continue.
This is basic economics, it seems to me. What am I missing here?
Trump tariff contributes to lumber price rise - WFMZ
Tariffs Kills Jobs - Foundation for Economic Education - Working for a free and prosperous world
Outside of their imposition through the normal trade-dispute system, that is. The latest evidence of that comes from Canadian softwood lumber, which has seen the U.S. government impose an approximate 20 percent tariff in April on its importation into the United States. The end result has been a steep rise in prices, about 25 percent, in that lumber.
This of course has a cascade effect, especially on new housing starts (lumber’s a major component of most any new housing). And because a tariff is, in effect, a tax on the consumer they also restrict a consumer’s options when purchasing a product. The tariff on Canadian lumber will probably also decrease the number of jobs in the housing construction industry if it’s allowed to continue.
This is basic economics, it seems to me. What am I missing here?
Trump tariff contributes to lumber price rise - WFMZ
Tariffs Kills Jobs - Foundation for Economic Education - Working for a free and prosperous world
I find this interesting as I am doing some work in my house. I bought 5 solid core oak doors a few weeks ago. They were all stamped “Made in China”
Do we ship wood there and mill it there and ship it back?
Assuming that’s a composite solid core, it’s my understanding that China does a solid business in importing wood bits, then exporting composite wood products.
This is basic economics, it seems to me. What am I missing here?
You know all this, but I’ll say it anyways, only because it’s such a joy to say. Politicians aren’t in the business of doing things that are good for the country. They are in the business of saying, and sometimes even doing, things that appeal to their constituents. Most of whom are, at best, misguided, and at worst, knuckleheads.
There’s 2 possible solutions. Campaigns to educate the voters such that the fraction of misguided and knuckleheads are reduced, or politicians that do what is right despite what the voters want. I’m not holding my breath.
