According to a statement released by the U.S. Department of Commerce, “On March 8, 2018, President Trump exercised his authority under Section 232 of the Trade Expansion Act of 1962 to impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports, with exemptions for Canada and Mexico, in order to protect our national security. The President’s Section 232 decisions are the result of investigations led by the Commerce Department, after review and comment by other relevant Federal agencies. Customs and Border Protection will begin collecting the tariffs on March 23, 2018.”
While American steel and aluminum makers are predictably excited about the announcement, as it means they face much less cheap competition and will be able to gain a larger market share, there is significant concern among industrial manufacturers, specifically “companies that use steel and aluminum in their products say tariffs would raise their costs, eating into profits or forcing them to raise prices or lay off workers.”
As the industry scrambles to adjust, many are wary of long-term consequences on trade and production—including retaliatory tariffs from many countries (some allies of the United States) and possible domestic shortages of steel and aluminum. Should other nations place like-kind tariffs on American imports, the demand for some products built by American manufacturers could see a sharp drop.
Addressing Metallic Products’ customers, President Coy Poret released the following statement:
“Due to the recent steel and aluminum tariffs imposed under Section 232, the metal building manufacturing industry has been forced to adjust materials sourcing and cope with new market pricing. As a result, starting April 2, Metallic Products customers can expect to see an increase in prices that reflects new market realities. We understand that this has a significant impact on our customers and hope to mitigate as much uncertainty as possible by communicating our changes and sharing industry updates as they unfold. Despite these price increases, Metallic Products is committed to helping you create work that flows.”
Metallic Products is closely following U.S. trade relations as they pertain to metal building manufacturing. Check back soon for updates on the Section 232 tariffs.