When U.S. President Donald Trump announced tariff on imported aluminum and steel, Justin Brill, the editor of the Stansberry Research Stansberry Digest, met the news with dismay. After researching U.S. manufacturing output and using data obtained from American Iron and Steel Institute and the Aluminum Association, Stansberry Digest’s Justin Brill discovered that these industries contribute less than 0.1 percent of the current labor market. Because of increased automation technology and the outsourcing of many manufacturing components, the U.S. no longer has the steel domination it had in the years immediately following WWII. The U.S. manufacturing segment would struggle to meet an increased demand and reestablishing a U.S. manufacturing presence would take years.
The backlash the United States would face because of these tariffs would be expensive Justin Brill points out. Using the economic analysis done by Stansberry Research, tariffs would increase the cost of goods within the U.S. Another factor, U.S. national debt and the current fiscal policies spurring a large deficit, new bonds will need to be issued and investors of Treasury Bonds will need to be sought. Debt-holders will want assurances of free trade and as China already owns a large amount of U.S. Treasury debt, tariffs will create international friction.
With the analytics available to Stansberry Research, Justin Brill has been able to look at the probable outcome of these proposed tariffs and feels that why they may benefit a small sector of the workforce, the price increases will outweigh any overall benefit. The tariffs would accomplish no more than raising costs while discouraging international trade and slowing the economy.
Along with his tariff analysis, Justin Brill publishes many other economically relevant articles through Stansberry Digest, a free publication to Stansberry Research subscribers. Containing information and top-notch analysis, the financial information Stansberry Research provides its subscribers is detailed and applicable to the current market conditions.