The Other Half of the Trump Tariffs
The Other Half of Trump Tariffs
The monies paid for the Trump tariff scheme will go to the Dept. of the Treasury. The revenue is paid by persons and companies on the USA side of the transaction. It is levied on importers, multinational manufacturers, distributors of finished goods, and food produce imports. All costs will be passed onto the end user. That is consumers like you and I.
Everywhere the news is out about inflation and retaliatory counter-tariffs. But the news reporting as yet does not discuss where the money goes. Follow the money with me to discover the worst aspect of Trump’s tariffs.
Go Figure
So, I was wondering about some of the numbers. What is the dollar value of a 25% tariff? Lets estimate looking at only steel, aluminum, and lumber imports. These commodities are the top import categories and common to Canada, Mexico, and China. The three countries Trump plans to hit with reckless and excessive tariffs.
Trump Claims It Will Make America Rich
But how much are these tariffs really worth? What if we estimated using China, Mexico, and Canada import data?
To estimate the dollar value of a 25% tariff on steel, aluminum, and lumber imports from China, Mexico, and Canada, we need to consider the import volumes and costs for these materials averaged over 2021-2024.
Here are approximate figures for the United States’ imports of steel, aluminum, and lumber.
Canada
Canada supplies about 5-6 million metric tons of steel to the U.S. annually, accounting for roughly 20-25% of U.S. steel import.
The U.S. imports approximately 3-4 million metric tons of aluminum from Canada each year, making up nearly 50-60% of its total aluminum imports.
Canada is the largest supplier of hardwood lumber. The U.S. imports 18 million metric tons, equaling around 15-20 million cubic meters annually.
China
China exports approximately 110.716 million metric tons of steel, making it our greatest provider.
China exports around 2.73 million metric tons of aluminum.
China’s wood exports to the U.S. were 20,700 million metric tons.
Mexico
Mexico exports around 3.2 million metric tons of steel to the U.S. each year, making it one of the top suppliers.
The U.S. imports approximately 300,000 metric tons of aluminum from Mexico annually.
While Canada is the primary supplier of hardwood and softwood lumber, Mexico contributes a smaller share, estimated at 1-2 million cubic meters per year, primarily for construction and manufacturing.
Value Estimations
To calculate the Trump tariff value, we need the average price per metric ton for each material. Let’s assume the following average prices.
Steel: $700 per metric ton
Aluminum: $2,000 per metric ton
Lumber: $500 per metric ton
Using these prices, we can estimate the tariff value fairly well.
Applying the Trump Tariffs
Canada
6 million metric tons of steel
3.20 million metric tons of aluminum
23.18 million metric tons of lumber and wood products
Steel: 6 million metric tons * $700/ton * 25% = $10.50 billion
Aluminum: 3.20 million metric tons * $2000 * 25% = $1.60 billion
Wood: 23.18 million metric tons * $500 * 25% = $2.90 billion
China
110 million metric tons of steel
2.73 million metric tons of aluminum
20.70 million metric tons of lumber
Steel: 110 million metric tons * $700/ton * 25% = $19.25 billion
Aluminum: 2.73 million metric tons * $2,000/ton * 25% = $1.365 billion
Lumber: 20.70 million metric tons * $500/ton * 25% = $2.58 billion
Mexico
3.2 million metric tons of steel
300,000 metric tons of aluminum
10 million metric tons of wood products
Steel: 3.2 million metric tons * $700/ton * 25% = $560 million
Aluminum: 300,000 metric tons * $2,000/ton * 25% = $150 billion
Lumber: 20.70 million metric tons * $500/ton * 25% = $2.58 billion
Now we can add up the annual tariff values for these three commodities.
Steel: $30,310 billion
Aluminum: $152,965 billion
Wood: $53.88 billion
Grand Total: $237.315 billion
This is how much revenue goes to the Treasury.
Raiding Our Treasury
The most expensive item in the Republican budget is the tax cut for the rich. As usual, the cuts overwhelmingly benefit those in the top 3% tax bracket. There are only approximately 4.2 million taxpayers in the top 3% of income earners in the United States. The remainder of those who file tax returns is 136 million.
Since the average people pay the end user’s costs, this represents a new tax on us all. So the tariff ought to go to the people, which amounts to an annual check for $1745. Instead it will go to a tax cut of $56.5 billion to each one of the top 3%. Then we get taxed for the same dollar 3 times. First, the Income tax when we earn money and then sales tax, plus the Trump tariff tax when we spend it.
So, tell me if Trumpflation is going to be covered by a check for a couple thousand or not.
Dats sources
: Statista : Shanghai Metal Market : Global Affairs Canada : Open Government Portal
