There will be winners and losers in Northeast Ohio with potentia - Cleveland 19 News Cleveland, OH

There will be winners and losers in Northeast Ohio with potential tariffs and potential trade war

ArcelorMittal, the worlds largest producer of steel could see an increase in business at its Cleveland plant because of tariffs places on foreign steel. (Source: WOIO) ArcelorMittal, the worlds largest producer of steel could see an increase in business at its Cleveland plant because of tariffs places on foreign steel. (Source: WOIO)
CLEVELAND, OH (WOIO) -

The world is still trying to see what will shake out with President Donald Trump's suggested tariffs on products being shipped into the United States. 

First, let's make sure you understand what a tariff is in the world of produced goods. 

Tariff: a tax or duty to be paid on a particular class of imports or exports.

Billions of products are shipped in and out of the country every year.

The argument from President Trump is there are too many countries shipping in cheaply produced items like steel and aluminum instead of buying it from U.S. companies. 

Trump has announced charging any steel coming into the U.S. a 25 percent tax, and a 10 percent tax on aluminum. 

Winners:

Steel producers in the U.S., like ArcelorMittal which has a large operation in Cleveland, have battled for years that they are being hurt by cheap steel coming in from other countries.

According to a recent Bloomberg article ArcelorMittal, "Has long argued for trade defenses to protect its core markets, and tariffs would be a big positive."

So among the winners are steel plants around the U.S. that may see a surge in business from companies who want to avoid the 25 percent tax on foreign products. 

Losers:

There would be some losers in Northeast Ohio as well. 

There are multiple stamping plants in the area that use steel and huge machines to stamp out parts for multiple uses. 

Some of them stamp out car parts.

If they paid more for U.S. steel they'd have to pass on the cost to automakers.

Automakers would want to make up that cost and could pass it on to consumers making the price of your next new car higher.  

There are some other potential losers that have nothing to do with steel or aluminum. 

Already countries like China are countering with tariffs of their own on products they take into their country like U.S. grown cotton, dairy, and soybeans. 

The American Soybean Association has already come out and said this trade war will have a tremendous impact. 

“The math is simple. You tax soybean exports at 25-percent, and you have serious damage to U.S. farmers,"  a statement from John Heisdorffer, a soybean grower from Iowa, and president of the American Soybean Association (ASA) said. 

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