Trade Tariffs

The imposition of a 10% tariff on aluminum and a 25% tariff on steel will boost inflation by upwards of one-tenth-of-one percent and reduce GDP by an equal amount. This is because prices will rise for all items containing these goods. These tariffs will boost employment up from 150,000 in US steel mills and aluminum smelters but reduce employment among the 5-15 million employed in sectors using these materials.