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Tariff Turmoil: Why is Steel so Important?

(CitizensOutpost)  Steel has become the center of attention recently due to President Trump’s indication that he wants to impose tariffs on steel imports from abroad:

An important point is made when Trump says, “IF YOU DON’T HAVE STEEL, YOU DON’T HAVE A COUNTRY!”.  As a matter of national security, if the US is heavily reliant on foreign producers of steel, it would be all too easy for enemies of the state to cut off supplies or weaken supplies with impurities or inadequate specifications.  Case in point, Japanese steel supplier, Kobe Steel, just came under fire for over 50 years of complicity in allowing low quality steel to be supplied across the world.

Via Reuters:

Kobe Steel Ltd admitted on Tuesday its data fraud has been going on nearly five decades and also revealed new cases of cheating, highlighting the challenges facing the 112-year-old company mired in compliance failures and malfeasance

Japan’s third-biggest steelmaker said its CEO will step down to take responsibility for the widespread data fraud scandal that came to light last year, although doubts remain over its corporate culture and the possibility of future fines.

Kobe Steel, which supplies steel parts to manufacturers of cars, planes and trains around the world, admitted last year to supplying products with falsified specifications to about 500 customers, throwing global supply chains into turmoil.

The company, in announcing the results from a four-month-long investigation by an external committee, said it had also found new cases of impropriety, widening the total of affected clients to 605, including 222 customers overseas.

“I feel heavy responsibility as our data falsification has caused trouble to so many customers,” the resigning CEO and chairman, Hiroya Kawasaki, told a news conference.

“I’ve offered my resignation … as I think preventive measures should be done under a new management,” he said.

Kawasaki will leave his post on April 1, with his successor to be decided soon by the board, the company said.

This is just one example of how malfeasance can threaten the national security of a country.  Imagine the implications if other imported steel was discovered to be falsely advertised as satisfactory quality?  Do we really want the infrastructure of the military and domestic enterprises to be dependent on potentially ill-intended foreign sources?  The very fabric of the country relies on the purity of our produced goods and steel is literally the backbone of the country’s architecture and military prowess.  President Trump is right to put this industry in the spotlight and if tariffs will shift the economic pressure of this industry towards self-preservation and national security then he has the right attitude towards bolstering not only the US economy, but the literal ingredients that will prop the country back to an excellent position.

Steve Mnuchin recently went on FOX News Business to discuss tariffs and other economic policy that the Trump administration is focusing on.

Watch it here:


Source: Kobe Steel admits data fraud went on nearly five decades, CEO to quit

Dig Deeper: Why Steel is So Incredibly Important to our World Today