Latest US Trade Casualties: Nails, Whiskey, Cranberries, Lobster, and Autos Too.

In Trump's global trade war, the latest US casualties are whiskey, cranberry, nail, and lobster industries. Autos too.

As Trump threatens tariffs on all auto imports from Europe, the EU Says It Will Respond.

“If they decide to raise their import tariffs, we’ll have no choice, again, but to react,” EU Commission Vice President Jyrki Katainen told French newspaper Le Monde.

“We don’t want to fight (over trade) in public via Twitter. We should end the escalation,” he said in the comments published on Saturday.

How to End the Escalation

No one has figured out the obvious. The way to end the escalation is to stop responding!

Meanwhile, Trump has not figured out that Tariffs on European Cars Would Hurt US Auto Jobs.

German automakers Mercedes, BMW, and Volkswagen all have plants in southern states and directly employ more than 20,000 US workers between them, primarily at those factories. Volvo is just starting production at its first US plant in South Carolina.

BMW's largest plant in the world, in South Carolina, built 371,000 cars last year. It exported more than 70% of those cars to other countries. By contrast, BMW only imported 202,000 cars to the US from its German plants.

Build Them Here

And lower sales will cost jobs at car dealerships, which employ more people than the automakers' assembly plants. Let's look beyond autos.

Please consider Lobsters, Small-Batch Whiskey and Trump’s Trade War.

Nails

Mid Continent, the largest American producer of nails, imports steel from Mexico to make its nails. That steel is now subject to the 25 percent tariffs that Mr. Trump imposed on dozens of countries, forcing Mid Continent to raise its prices by nearly 20 percent.

Orders have plummeted by 50 percent this month as the company tries to compete with cheaper foreign-made nails. Those foreign manufacturers are not facing higher steel costs, giving them an advantage over Mid Continent.

The company, which employs about 500 workers, has already cut 60 jobs. It could potentially cut 200 more in the coming weeks.

Whiskey

To meet a global thirst for American whiskey in recent years, distilleries that make bourbon and rye — and sell it around the world — have sprung up across the country. But this week the European Union applied a 25 percent duty to American whiskey in response to Mr. Trump’s steel tariffs, spiking the prices of the iconic American tipple on the Continent.

For small distillers like Scott Harris, a founder of Catoctin Creek Distillery in Purcellville, Va., this has dampened happy hour.

“We are just launching into the European market now in a big way, and this could be the worst possible timing for us,” Mr. Harris said. “We’re probably going to see all of our European sales now come to a screeching halt.”

Comments (20)
No. 1-20
Stuki
Stuki

But hey, lobbyists get to collect hefty fees to lobby for exemptions. In progressivestan, being connected Trump being competent and competitive, after all.....

Kinuachdrach
Kinuachdrach

Mish -- your site is in danger of becoming dull. You are entitled to your own faith in unilateral free trade, but it is not accurate to keep talking about "Trump's trade war". All the President is doing is recognizing that the US has been on the losing end of a full-out trade war for decades. He did not start the fire!

The US used to send out over-paid bureaucrats who would "negotiate" by giving in. Very peaceful, and the trade "partners" loved it. Classic example -- NAFTA, North American FREE TRADE Agreement, which is hundreds of pages long. How can it take hundreds of pages to say "free trade". It is not "free trade" it is managed trade -- and managed to the disadvantage of US workers. Of course, elites do not give a damn for the impact of unfair trade on the working man. Strange that a New York billionaire has more concern for the working man than the media and the Democrat Party combined.

Blacklisted
Blacklisted

How were we doing before the "Trump trade war"? We should all know that career politicians and their establishment remora in the media and boardrooms of big corporations are responsible for our pathetic economy, which has been getting progressively worse for decades, and is the source of the civil unrest, increasing taxes, and trade wars. If Trump were to fail at everything he attempts, his presidency would be a raging success for one simple reason, he has not only gotten the establishment to pop their heads out of the swamp.

Blacklisted
Blacklisted

but they are committing political suicide.

Kimo
Kimo

Trump defines his free trade, carrot and stick, strategy when he announced his candidacy, three years ago:

Ross explains the implementation:

Patience, Grasshopper, the Canadian ship is starting to turn: