The EU agreed to double tariffs on foreign steel imports to 50% to protect its domestic industry from cheap Chinese imports. — The EU agreed to double tariffs on foreign steel imports to 50% to protect its domestic industry from cheap Chinese imports.
The announcement concerns the European steel industry and the importers from China. What it does not concern - because the question was not asked - is the heat of the furnace, the weight of the ingot, or the cost of the finished bolt in the hands of the man who must use it.
The lawmakers in Brussels have sat in rooms cooled by air and quieted by thick walls to decide that a fifty percent tariff is the proper weight to place upon the scales of trade. They speak of “protection” and “industry” and “existencies” as if these were things that could be managed by adjusting a number on a ledger. They speak of “cheap imports” as if the price of a thing is the only truth of its making. But they do not speak of the hands that must hold the steel once the price has risen. They do not speak of the small shopkeeper or the builder who finds that the shield meant to protect the maker has become a weight that crushes the user.
I have seen how people use walls to keep things out, only to find they have trapped themselves in a room with no air. They say they are building a wall of tariffs to keep the Chinese steel from flooding their markets. They say they are protecting the hearth of the European worker. But a wall does not just keep the stranger out; it keeps the cost in. When you double the price of the metal, you do not just change the math for the exporter; you change the reality for the person who relies on that metal to build a life, a house, or a tool.
The lawmakers look at the steel industry and see a collection of interests to be balanced. They see “downstream consumers” and “domestic producers” as pieces on a board. They do not see the actual labor of the consumer, which is the labor of making do with less. They do not see the person who must now pay more for the same strength, or find a weaker strength because the strong has become too dear. They have made a decision about the cost of survival without ever having to pay the bill themselves.
There is a great gap between the theory of trade and the practice of living. The theory says we must prevent unfair competition to save our industry. The practice says that when the price of the foundation rises, the whole house becomes harder to build. They call the Chinese imports “unfairly cheap,” and they use that word to justify a heavy hand. But they do not audit the cost of their own “fairness.” They do not inventory the struggle of the person whose livelihood depends on the affordability of the very thing they are making expensive.
The people being discussed - the steelworkers, the exporters, the consumers - were not the ones who weighed the tariff. The weight was decided by those who do not have to carry it. The lawmakers have looked at the map of the market, but they have not looked at the map of the workshop. They have looked at the movement of goods, but they have not looked at the movement of the people who must live within the consequences of these prices.
They say they are protecting the industry. I would like to see them protect the person who uses the industry’s fruit. They have decided that the price of protection is a fifty percent increase, and they have done so without asking if the people they claim to protect can afford the cost of their own salvation. The metal is the same, whether it comes from the East or the West, but the burden of the tariff is a new weight, placed upon the backs of those who were never invited to the negotiation.