President Trump’s announcement regarding tariffs on foreign steel and aluminum has created chaos for those in and out of the industry. While many see the plan as a way to level the playing field with foreign steel and aluminum producers, namely China, others are unsure about the destabilizing effects the tariffs may have on the economy and relationships with foreign governments and the potential spark of a trade war.
The primary goal through the imposed tariffs is to prioritize the sale of American-produced steel and aluminum. The Washington Post reported President Trump is hoping to “incentivize U.S. companies to buy steel and aluminum from U.S. producers so the domestic metal industry gets stronger.” If that’s the case, the metal industry will not only be able to save jobs but add new positions.
However, while the current administration hammers out the details of the steel and aluminum tariff plan, those who rely on these products are feeling the stress. Domestic mill prices have increased, causing distributors and those selling metal products to raise prices on their stock as well. These entities are purchasing products at a higher cost to have a thorough supplier for customers, but at some point decisions will be made that inevitably level the prices which could result in losses.
Additionally, manufacturers will not be able to access the steel and aluminum in transit from foreign countries who are within the tariff’s parameters. These products will have to be held until a decision is reached, causing downtime.
As always, Texas Iron & Metal stays ahead of what’s happening in the marketplace. Our knowledgeable team will continue to be a resource for customers, making product suggestions and surplus and Less-Than-Prime© product recommendations to keep projects moving forward. Call one of our salespeople at 713.672.7595 for current pricing and continued great deals.