Trump says he wants to protect steelmakers. Why are they unhappy?

Thanks to tariffs, US steel prices are up 30 percent this year. Major steelmakers such as US Steel are set to post $ 2 billion in profit in 2018, having lost $ 1.7 billion over the past three years. With the corporate tax rate recently slashed from 35 percent to 21 percent, steelmakers are set to retain even more record profits.

However, while the steel industry is booming, steelworkers across the country simply voted overwhelmingly to authorize a nationwide strike that could paralyze the sector. Last week, 15,000 workers at plants operated by US Steel unanimously supported a potential strike. Approximately 16,000 people from ArcelorMittal's factories have joined this week.

Why are steelworkers so unhappy after decades of lobbying for high tariffs that Trump has responded to their demands?

The answer is that profits from high steel tariffs do not apply to steelmakers. The threat of a strike is an attempt by the union to grab some of this profit for the workers.

Many steelmakers voted for Trump in 2016, aided by his promise of high tariffs. Those same workers now see that tariffs can increase a company's profits without increasing wages. Understanding the whole situation threatens to provoke a nationwide strike, which could in turn weaken working-class support for Trump in the crucial months leading up to the 2018 midterm elections.