Other American industries could be affected by new tariff act - Hometownstations.com-WLIO- Lima, OH News Weather Sports

Other American industries could be affected by new tariff act

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The new levies will definitely be good for business for American aluminum and steel companies, but other major industries like auto and appliance manufacturers and even the alcohol industry have lobbied against it. The new levies will definitely be good for business for American aluminum and steel companies, but other major industries like auto and appliance manufacturers and even the alcohol industry have lobbied against it.
The European Union has already threatened tariffs against products such as Kentucky bourbon, Harley Davidson, and blue jeans. The European Union has already threatened tariffs against products such as Kentucky bourbon, Harley Davidson, and blue jeans.

President Donald Trump has officially signed the new tariff act, but industries outside of American steel could see some blow back.

The new levies will definitely be good for business for American aluminum and steel companies, but other major industries like auto and appliance manufacturers and even the alcohol industry have lobbied against it. There is some concern that the trade war will have a slippery slope effect and drive up costs for other parts of the economy.

"We're going back on our word and violating the trade agreements we have," says Dr. Jonathan Andreas, associate professor of economics at Bluffton University. "There are clauses in our agreements that when we do that it is legal for our trading partners, who are mostly our allies, to retaliate. How big will the retaliatory tariffs be? He's going to retaliate with additional tariffs and so where will it end?"

Andreas says it is hard to tell exactly what the tariffs will do to the economy until it plays out, but the European Union has already threatened tariffs against products such as Kentucky bourbon, Harley Davidson, and blue jeans.

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