In the relatively short time since Customs and Border Protection began enforcing the steel tariffs on March 23, the U.S steel and manufacturing industries have recovered from the initial market shock and started to cope with the new normal. Early fears of domestic shortages of steel and aluminum linger, as many manufacturers are finding it difficult to find the quantity and quality of steel necessary to make their products.
ABC News reports that “Even companies that buy only made-in-America steel complain that rising prices are squeezing their businesses. Qualtek Manufacturing Inc. in Colorado Springs, Colorado, makes precision metal parts for aerospace and medical device companies. CEO Troy Roberts says rising steel and aluminum prices have already driven the annual cost of his company’s key products by $300,000, jeopardizing plans to add 14 jobs to his 74-employee staff. It’s also delaying shipments.”
Echoing these sentiments, Global Trade Magazine reports that aside from U.S. steelmakers, domestic manufacturers are opposed to the new tariffs and protectionist trade policy. “Manufacturers that normally rely on foreign steel and aluminum may see their production costs increase, while manufacturers targeted by retaliatory tariffs may see their products become less competitive abroad. Rising production costs and decreased competitiveness may lead to worker layoffs and facility transfers to countries with access to cheaper production materials.”
Metallic Products is following tariff and trade developments closely and will report updates as the occur. Check back soon for the latest.