Trump: Bewildering . . .
For every good move he makes, President Trump manages to gum up the works with his warped trade policies.
Take his signing of an executive order to revive two oil pipelines canceled by the Obama administration — a good thing. That is until he added, “We will build our own pipes. Just like in the old days,” and directed the Commerce Department to produce a plan to ensure that only U.S.made steel goes into the pipe. This means he doesn’t want
any imported pipe used. That would force the Canadian company building the Keystone line to drop its Canadian, Indian and Italian suppliers in favor of U.S. companies. (The Dakota Access pipeline from North Dakota to Illinois is 90 percent finished and likely has all the pipe it needs.)
The justification for such a move, beyond sheer ethnocentrism, is unclear. The Commerce Department imposed so-called “anti-dumping” tariffs for alleged sales below cost on pipe from Mexico, South Korea and Turkey last fall. But several companies were absolved of the charges.
And what’s so special about the “old days?” If nothing else, the phrase confirms that Trump is locked into a backward vision.
And if that vision requires significantly higher prices — in effect, a tax on the job that takes money from other uses — the president could wind up with less than he expects.
The builder of the Keystone pipeline, Trans Canada Corp., has officially filed its application for a new presidential permit. It presumably could pass along the increased costs of U.S.-produced steel — assuming a switch in supply chains wouldn’t further delay the project.
Another point: If foreign pipe is undesirable, why is a foreign builder OK? The money it takes out of the U.S. economy in profit probably will be greater than the cost of the pipe.
For all of his bloviation about business revival, Trump could be about to produce significant business damage.