UPDATE : 2024.6.3 Mon 00:19
The actual goal behind the Trade War
  • By Jeong Seung-In, reporter
  • 승인 2018.09.15 18:40
  • 호수 252
  • 댓글 0

Trump has been carrying out protection trade in the second year of his administration. Trump says the current trade policy of the US is very disadvantageous for them, and that it is urgent to be corrected. Despite the world's concerns over Trump's trade war, the pace of its spread is happening fast. Trump appears to be taking his action for the upcoming US midterm election. In the United States, the Trump’s approval rating of the people for Trump is currently very low, and the rate of Republican support is also lower than that of the Democratic Party, which is not good for Republicans or Trump. If the Republican Party wins fewer seats than the Democratic Party in the upcoming November midterm election, it will be difficult for Trump to really exercise his power as he would not have both the people and the parliament on his side. Thus, in the midterm elections, the Republican Party's supporters should be unified as much as possible. To do so, Trump is trying to mobilize supporters with security and patriotism, a typical slogan of conservatives. The United States is now having a strong time with an economic boom, with its high GDP, and low unemployment rates. The Republican Party has tied the economy to patriotism and security, and Trump has created protectionism as a winning strategy.

An essential element of the trade war is the increase in tariffs and the targeting the patriotic industry. The United States needed enormous amounts of reinforced steel and concrete in 1920, which led the United States to beat out the United Kingdom in as the world's best steel industry. However, the patriotic steel industry of the formerly booming Rust Belt has has now disappeared which is why Trump wants to revive the old glorious industry. To do so, the first thing Trump did was to impose tariffs on imported steel. Trump's big picture is that importing steel tariffs will increase the cost of imported steel, which will make increase US steelmakers' competitiveness increase along as well, resulting in an increase in the number of jobs in the United States.

But what’s important is that the fundamental structure of the trade that has been maintained for decades is hard to change abruptly, even for Trump. Nowadays, steel is a major part of most products, which means steel has a huge impact on modern industries. For the United States, with using only domestic steel , it just won’t be enough for them. Eventually, by importing steel from abroad inevitably, increase in price for the exporting products will make their products less competitive in terms of prices overseas. Trade wars happen every election. Even Obama took steps to restrict importing Chinese tires, resulting in the elimination of 2531 jobs in the United States.

Imposing tariffs on steel can make things worse for Trump, a businessman, because his gains and losses are obvious. Some argue that Trump already knows the consequences of imposing tariffs on imported steel, and Trump is just doing it to mobilize supporters. Trump’s pledge, which may be seen as a populism, has also been seen in his campaign pledge that Trump will build a wall between the United States and Mexico. Although he is still in the process of building it, he has corrected his words to change some of them into fences. He also said that he would deport 11 million illegal immigrants, but he corrected his statement by expelling 300,000 people considering the negative impact it may bring on the US industry. Trump's bold remarks are the best way to recall the call supporters back to the Republican Party.

The Republican Party has tied the economy to patriotism and security as for a winning strategy.

By Jeong Seung-In, reporter  samcandothat@naver.com

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