Trade is a crucial driver for air cargo
Sebastiaan Scholte, TIACA Chairman and Chief Executive Officer of Jan de Rijk Logistics, discusses the recent tariffs imposed on steel and aluminium US imports.
The decision of US President Donald Trump to impose tariffs on steel and aluminium imports will only bring about negative consequences.
There are fears that a tit-for-tat escalation could result from the tariffs, sparking a trade war that would undermine an otherwise strengthening global economy.
The air cargo industry is currently experiencing a period of worldwide growth and this would be a considerable blow.
Trade is a crucial driver for air cargo and new trade barriers resulting from a rise in protectionism will only cause damage to our industry.
Not only that, but trade is crucial to world peace and security; it brings balance between the world powers, stabilizes economies, and generates peace and security through the forging of economic connections between nations.
If every nation is an economic island, the lack of positive interaction created by trade could leave room for more conflict.
Even the very people that these tariffs are meant to protect are being short-changed.
Steel and aluminium workers represent a tiny fraction of the American jobs market. Much more People are employed in steel dependent industries where these materials are used to make everything from cars, buildings, and washing machines to refrigerators, electronic devices, and even canned food.
More expensive steel and aluminium will get passed on to businesses and consumers. Companies might even consider moving production and in general this will negatively impact employment.
No one comes out on top in a trade war. This is why we must approach this situation cautiously and sensibly, in order to limit any collateral damage.
