One Voice | Government Advocacy for the Metalworking Industry

As steelmakers cheer tariffs that could encourage more domestic production, industries that use the metal are concerned about the ramifications increased raw material prices could have on their businesses.

 

On Thursday, March 8, President Donald Trump signed proclamations putting a 25% tariff on a wide variety of imported steel products and a 10% tariff on a broad number of imported aluminum products, excluding products from Canada and Mexico. The argument is that imports threaten the longterm viability of steel and aluminum makers in the U.S., and that it could be a national security issue if more closed, because the domestic industry wouldn't be able to meet demand in an emergency.

 

The expected benefit to U.S. steel and aluminum makers is clear, as this move should cut down on the competition they face from foreign companies. Steel in particular has struggled in recent years as factors like oversupply and a strong dollar led to mill shutdowns. And the announcement of the tariff has already led to optimism in the sector. Canton-based Republic Steel on Thursday announced that it was poised to reopen its Lorain plant if the tariffs led to increased demand, and Pittsburgh-based U.S. Steel Corp., which also has a mill in Lorain, praised the tariffs in a news release. Companies including Cleveland-Cliffs Inc., which supplies iron ore to steelmakers, are pleased, too.

 

But there are concerns — lots of them — about how this could affect companies further down the supply chain and whether it would slow a manufacturing economy that has been running strong in recent months.

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