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Costs/Benefits of US Canada Trade War - Coggle Diagram

- - - - Cape May Brewing Co. hit with the cost of aluminum
        
        Not a price elastic product, due to heavy competition, unlike cars.
      - Jean Simard - President, Aluminum Association of Canda: US produced 700K tons of aluminum in 2017 and consumed 5.5M tons. They still need to consume 4.8M tons more than they are producing and now they will pay more for it.
      - Rep. Tom McClintock quoted Frederic Bastiat, "What is better: Abundance or Scarcity?"
        
        Atif Kubursi, Professor Emeritus McMaster University - The US cannot ramp production in a way that would allow them to replace all the Canadian imports. There will be shortages
        
        Added supply chain costs and lost time.
    - - AltaSteel held US business relationships for 20yrs, which may be sacrificed. Employees are at risk.
      - Tubular Steel, Inc cannot afford to drop prices 25%.
  - - - $16.6B in Aluminum and steel manufactured products, whisky, motor boats and orange juice have all been tariffed by Canada.
        
        Suffer the same direct costs as the Canadians due to US tariffs. They must either lower their prices or seek new buyers, putting employment in more industries at risk.
        
        Rep Tom McClintock states that while140K steel industry jobs are at risk, more than 6M jobs in other sectors are now at risk because of tariffs.
        
        Extended to the world stage, every government levying reciprocal tariffs are now amplifying the number of industries and jobs at risk due to the trade impeding actions of one country. Thus reducing global market value in a multitude of ways.
        
        China responded with $50B in tariffs on products like soybeans, who imported $13B worth in 2017. This impacts businesses like Walton Farms of Iowa who employs workers at $55K/yr and now must seek alternative buyers or face layoffs and possible bankruptcy.
- - - - Magnitude 7 Metals, in New Madrid County, Missouri
        
        Shuttered in 2016, with 800 employees laid off. Re-opened in 2018 due to Trump's tariff trade policy. Many of those same workers were re-hired.
    - - Century Aluminum, Hawesville, KY
        
        Michael Bless, CEO: Chinese dumping led to 40% price crash for aluminum. More than 85% of all foreign demand is for foreign aluminum. This led to 100% of aluminum smelters targeted for closure.
    - - China is a major dumper of aluminum and steel. If they/Russia, a close ally, are perceived foes of war, it would not be responsible for the US to be reliant on their product
    - - Revival of destroyed mid-west communities
      - Indiana / Pennsylvania - will see supplemental revenues tied to increased operations
    - - Alcor, US Steel, Alcoa can sell at higher prices
    - - Rep Marcy Kaptur, D-OH, a primary govt representative of the auto-industry, says that while approach should be more tailored and not simply a 25% across-the-board tax, an average $35,000 car would incur an extra $135 of steel tax, which really doesnt amount to much.