In March of this year, the Trump administration imposed new tariffs on aluminum and steel imports in an effort to boost domestic jobs in metal production. This move has had a major impact on the steel and aluminum industries both at home and abroad, creating a major opportunity for some metal suppliers and sharply impacting profits for others. Here is a basic breakdown of the effects of this decision in the months since its implementation.
Effects of the New Metal Tariffs
1. Rise in Materials Prices
Within the US, both steel and aluminum prices have risen as the foreign supply of these materials entering the country has decreased. Not only have the prices of imported metals been directly affected, but domestic metal suppliers have also been able to raise prices while remaining competitive.
2. Higher Consumer Costs
In an effort to maintain profits, the increased costs of metals are being passed on to consumers. Appliances and products which use steel and aluminum parts, including cars, will rise in price.
3. Domestic Metal Suppliers Prosper
Because of mounting metal prices, domestic companies producing raw metals have widened their profit margins and increased share prices. Those with investments in steel and aluminum production have cause to celebrate the new tariffs.
4. Job Creation
These tariffs were designed to boost domestic metal production and create more jobs in this area. Aluminum and steelworkers laid off in the last 20 years may expect to see some of these production jobs return.
5. Imported Parts Attract More Buyers
Meanwhile, domestic manufacturers creating steel and aluminum parts are at a disadvantage compared to foreign providers. As the cost of metal in the country goes up, so do production costs for these parts, making foreign options more competitive in price.
If you’re looking for a new metal supplier in this changing landscape, consider American Metal Supply, serving Cincinnati, OH, and Louisville, KY. They are proud to be able to meet any client’s processing needs either in-house or through their network of industry connections. With their new revamped website, you can access information on their wide range of products and processing options, as well as useful reference data and 24/7 communications. To get started, call (502) 634-4321 or request a quote online.