U.S. Steel Is a Tariff Takeover
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Oh, yeah, politicians going to be coming out of woodwork on this one. US Steel being bought. US Steel. Think about that for a second. First thing that came to mind was Wall Street, which Sir Larry Wildman buying out was it Anacot Steel there? Bud Fox tailing him that whole scene from the movie Wall Street. But anyway, US Steel actually looked it up. I couldn’t remember how it was put together.
Originally had Andrew Carnegie and his steel company was Carnegie Steel. And actually J.P. Morgan formed U.S. Steel in 1901, merged Andrew Carnegie’s company with Albert H. Gehry’s Federal Steel Company and William Henry Judge Moore’s National Steel Company was the one time U.S. Steel was the largest steel producer and largest corporation in the world.
In 2008, let’s put this in a perspective, 2008, it was the eighth largest steel producer in the world. By 2022, it was the world’s 24th largest steel manufacturer, not going in the right direction. So why is U.S. Steel? Why are the Japanese coming in and buying U.S. Steel? Simple. Tariffs. Nippon Steel is massive.
It’s a massive steel company. It’s not as big as China’s. What’s the name of the Chinese steel company? I’d written it down here. But that’s the largest in the world. But the reason why that Japan is buying this is because, quite frankly, they don’t wanna pay tariffs any longer.
and the capacity here in the United States right now, because all of these new government programs, the Inflation Reduction Act and all of these things that are going on, require the steel to be manufactured here in the United States. And the capacity is not there. It’s not there. And again, because of these tariffs that were put on
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by Donald Trump as all, you know, hey, we’re gonna protect US jobs and we’re gonna do this and we’re gonna do that. It didn’t really do that, did it? You actually have jobs go backwards. US feels workforce shrunk to 22,740 at the end of 2022 from 29,000 in 2018. Not to mention all of the jobs that could have been created downstream.
if steel from other nations were allowed to come in here. Again, this is the government tinkering with the free market. Tinkering with the free market. Now I know you got John Fetterman, Senator from Pennsylvania and he wants to put a stop to this buyout. JD Vance has sounded off on this and why this can happen. Why this stuff happens is that you guys mess with things.
you mess with things. Again, it may look good at a campaign stop somewhere, and I know Donald Trump with his trade policies, tariff management, they’ve been an absolute disaster. They haven’t helped. The Japanese want US steel because they don’t want to spend the money on tariffs, exporting from Japan to the United States. It’s just that simple. So again, let the market work.
Let the market work, step away, drive costs down for consumers. Talk about inflation, all the time, Federal Reserve, raise rates because they got to handle inflation. Most of the inflation that we’re dealing with is due to this regulatory nonsense. Whether it’s some government agency that’s throwing some ridiculous regulation on some product, or it’s some tariff somewhere that we pay the price. That’s the thing.
I’ve explained this before here on the program. It’s the same concept when it comes to corporate taxes. You’re always being sold, all right, corporate taxes, gotta get those corporations. You’re not getting the corporations. You’re getting the customer, you’re getting the consumer that is buying or utilizing the services for that corporation. The corporation will pass that cost on down to all of us. And the same way that, guess what?
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The steel that needs to go for let’s say EVs, that’s in the Inflation Reduction Act or whatever the hell, you know, EV deal that they’re putting out there. It makes the cars more expensive. So again, it’s completely, you’re pulling tug of rope back and forth at all this stuff and we’re not getting anywhere. Do us all a favor, just get out of the way. Watchdog on wallstreet.com.
