Mr. Trump has said that it is easy to win a trade war! According to his confused thinking, putting a hefty tax on imported steel will create thousand of jobs at American steel mills. This of course may happen after a waiting for several years for new investments in steel factories in the US that will never happen because they all know that he will not be around that long!
Nobody in their right mind will invest in new steel facilities unless there is long-term viability in a sector that requires huge investments in capital intensive equipment. Foreign suppliers in China and many other countries already have modern factories ready to deliver cheaper steel the moment Trump is removed.
A trade war is not really a war because there is no fighting, just a unilateral announcement that a new tax will be placed on imported steel. The imported steel will cost more because of the tax and consumers in the US will have to pay more for things like nails, cars, canned beer and building materials. People will buy less causing others to lose their jobs. Inflation will creep up because steel is in everything… So the very people Trump says he is trying to protect will suffer most. The rich and wealthy have already lost some of their cash because many share prices have fallen sharply. On the other hand these people made a lot of money because the tax reform put a lot off money in their pockets – Mr. Buffet was said to be really pleased because he received over USD 30 billion in tax reductions!
So we have all these billionaires now swimming in money… we must feel so happy for them to have succeeded in their new business venture called “Trump Inc.” whose main business objective is to have a CEO in place who has the power to cut your tax bill by billions!
Of course you get what you wish for by having a Trump Inc. – some of the unintended consequences are that the CEO likes playing with nuclear bombs, has a huge sex drive, cannot read, and can only write his name in capital letters when surrounded by staff who try to stop him writing profanities in Twitter anytime somebody does or says something he does not like or understand, which is pretty often.