Last year when President Trump enacted Section 232 and imposed a 25% tariff on all steel and aluminum coming from China, we wrote about how this would affect our industry. While the main target of these tariffs was China, what happened was a larger decrease in steel from countries such as Turkey, South Korea and Russia, according to an article by the Wall Street Journal. Additionally, our closest trade partners – Canada and Mexico – enacted retaliatory tariffs that are affecting other American industries.
So – the main question: how have these tariffs affected our industry? Well, the main goal was to increase American steel production and drive job creation within the industry. However, the same Wall Street Journal article notes that it’s a “strengthened economy, not tariffs” that are “the main impetus for increased production.”
What we’ve seen since the initial tariff imposition is an increase in steel prices across the board, which is good for steel manufacturers, and there are even steel plants in the Rust Belt that have laid plans to reopen. This is good for the American steel industry, right? The answer to that question seems uncertain, but overall, it is looking up for our industry.
What the Newly-Announced Tariffs Mean for the Metal Fabrication Industry
President Trump recently announced additional tariffs on imported products, mainly falling in other industries such as consumer electronics, toys and shoes being imported from China. These new tariffs may not affect the metal production and fabrication industry as much as the previous 25% steel tariff and the 10% aluminum tariff that have been in effect since January 1.
On the upside of the trade war we continue to see brewing with China and the EU, there is a revised NAFTA agreement in the works, which has been part of President Trump’s initial campaign promise. While the revised agreement still needs approval from Congress, Mexico and Canada refuse to consider the agreement until tariffs against their imports have been lifted. These countries are currently facing the same tariff amounts as China.
What Pioneer Metals is Doing About the Tariffs
The metal fabrication industry continues to stay on its toes, waiting to see what President Trump intends to do regarding the tariffs: will they be reduced, increased, or stay flat? If you read or watch the news regularly, you can see that this is a question on many peoples’ minds, but has few answers.
At Pioneer Metals, located in Jackson, Georgia, we continue to provide our customers with the highest quality metal structures at cost-effective prices with affordable purchase options. Our team keeps a very close eye on what is happening with the tariffs and how it affects our business. We strive to keep our metal prices as low as possible to help our customers purchase the metal roofing material they’ve been eyeing.
Let us know how we can help you purchase your new metal roofing material. We are available online and via telephone at 770-504-8688 to discuss how the tariffs affect our prices, how they affect your purchase, and how we can help you select the material and accessories that’s right for your roofing project.