Canada, Mexico No Longer Pose National Security Threats to the US

We have finally admitted that Canada and Mexico do not represent national security threats:

The United States agreed Friday to lift its tariffs on industrial metals from Mexico and Canada, clearing a major obstacle to congressional passage of President Trump’s new North American trade deal.

….Senate Republicans, including Sen. Charles E. Grassley of Iowa, the powerful Finance Committee chairman, had said they would not approve the deal while the tariffs were in place. Iowa farmers were among the casualties of Mexican retaliatory tariffs, which cut deeply into U.S. agricultural exports. The Mexican tariffs, and similar Canadian levies, also are being eliminated.

As you can see, this decision had nothing to do with national security, which means it never had anything to do with national security in the first place. I’m sure you are all shocked to hear that.

In any case, this is why it was always ridiculous to think that tariffs would cause American steelmakers to invest heavily in new capacity. It takes years to build a new steel mill, but only minutes to wipe out a tariff. In this case, 20 percent of American steel imports were released from tariffs with the stroke of a pen. (And nearly half of aluminum imports.) Overnight, a new mill that made sense might suddenly not pencil out.

Besides, a temporary increase in capacity utilization from 74 percent to 77 percent was never going to send the green eyeshades set into a money-spending mood in the first place. Only an idiot would base long-term capex spending on politically motivated tariff decisions that could change from one day to the next depending on what Fox & Friends happens to say one morning.

Also worth noting: no tweet! Apparently President Trump isn’t very excited when he removes tariffs, even though that’s what his trade war is allegedly about.

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Thank you!

We didn't know what to expect when we told you we needed to raise $400,000 before our fiscal year closed on June 30, and we're thrilled to report that our incredible community of readers contributed some $415,000 to help us keep charging as hard as we can during this crazy year.

You just sent an incredible message: that quality journalism doesn't have to answer to advertisers, billionaires, or hedge funds; that newsrooms can eke out an existence thanks primarily to the generosity of its readers. That's so powerful. Especially during what's been called a "media extinction event" when those looking to make a profit from the news pull back, the Mother Jones community steps in.

The months and years ahead won't be easy. Far from it. But there's no one we'd rather face the big challenges with than you, our committed and passionate readers, and our team of fearless reporters who show up every day.

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