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Tag Archives: Tariff

I Hate It When I’m Right

A week ago, I commented with qualified praise for the Obama Administration as they signed a bill to reduce tariffs on imported items.  I had hoped that when I later spoke with my co-workers I would find the bill included Magnesium Alloy which has a job killing tariff practically doubling the price at which U.S. Manufacturers can by the metal.

To my dismay, I spoke with our V.P. of Sales today about this issue, and he indeed confirmed that Magnesium Alloy would continue to be protected by tariff,  “Only non-controversial raw materials were included in that bill.”

So, if any company in the U.S. was also producing the commodity and filed a complaint, it was ‘controversial’ and the tariffs remain.

Bottom line.  This is a do-nothing bill that sounds good on the headline, but doesn’t really help many manufacturers in the long run.  If there’s no one in the U.S. making Bullcrapium, then we’ll take the tariff off which does reduce the cost to those manufacturers.  But, if there is a U.S. competitor for the product, we leave the tariff on, and the price for the raw material is so high that it’s cheaper to manufacture from the raw material outside of the U.S. and import the finished product.

Where are the jobs?  Outside of the U.S.

 
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Posted by on August 23, 2010 in Bureaucrat, Free Market, Obama

 

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Obama: An Glimmer Of Sanity

After complaining about Obama’s…

  • Lack of experience
  • Marxism, Socialism, Communism beliefs
  • Destruction of the Private Sector Employment Opportunity
  • Vast Expansion of the Size of the Federal/State Government and National Debt
  • Massive Seizure of Power and Control
  • Out of Touch Narcissism
  • Shutdown of Energy Supply
  • Paybacks to Union
  • Vote Buying

…I finally have something for which to compliment.

Today, Obama signed a bill to reduce the tariffs on raw material imported into the US.  The company for which I work has been fighting long and hard against the bureaucracy of the ITC to reduce a tariff on raw magnesium that has destroyed the die cast industry.  The tariff has run manufacturing out the US to other countries that can import the cheap raw material, produce components, and import them into the US without the tariff.  US Manufacturers can’t compete with additional price of the raw material.

This effort by Obama and Congress is an extremely conservative free-market move.  I support the effort.

Sadly, I’m all to jaded and cynical about the effort.  What devil is in the details as with the recent bailout of the State Employees?  We’ll see, but the premise, if continued, is valid!

 
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Posted by on August 11, 2010 in Capitalism, Free Market, Obama

 

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