Shortly after announcing new tariffs on imports of solar products and washing machines (SEE: Donald Trump slaps tariffs on solar products, washing machines), Wall Street now expects President Donald Trump to slap tariffs on another popular import.
Aluminum, warns Goldman Sachs.
And this would be a big deal.
Since aluminum is used in everything from automobile manufacturing to cans of pinto beans, it will inevitably lead to price hikes and job losses, like all tariffs and levies do.
The financial institution’s analyst Jeffrey Currie writes:
“We think a trade tariff on aluminum is more likely than not to be imposed. The situation is fluid and there is still great uncertainty associated with the tariff rate, the targeted countries, and potential retaliations from America’s trading partners,” he wrote in a report.
“As many have pointed out before, imposing a tariff on primary aluminum alone would be devastating for U.S. semi manufacturers, since they would not be able to compete with cheap Chinese semis if domestic primary aluminum becomes more expensive.”
This forecast comes one day after Treasury Secretary Steven Mnuchin hinted that the Trump administration would adopt a weak dollar policy, reversing the strong currency stance of the last 25 years (SEE: Steven Mnuchin champions benefits of weaker U.S. dollar in Davos).
Stop, Trump. Please stop!
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