New tariffs set to start May 11 have been announced that could impact the price of foreign steel, but right now things are changing every day on this topic. Many of those who purchase and use steel for their manufacturing facilities will want to keep a close eye on what is happening in the coming months because the tariffs could impact what they pay to obtain the steel they need. With changes occurring just about every day, it’s more important than ever to work with an organization like Hascall Steel Company.
Why Are the Tariffs Changing?
Current tensions between the US and China are escalating, with the question of reciprocal tariffs on goods imported to either country being the biggest concern. The US administration called for tariffs of 25% on foreign steel, which began on March 23, but there are temporary exclusions for many countries until May. Tariffs imposed by China have been reduced, but the United States is expected to recommend additional tariffs on Chinese imports. Bottom line, we believe the changing tariff language and posture is an indirect play on broader goals and initiatives surrounding US trade imbalances and the current administration that asks for much, hoping to get some…
While the negotiations are ongoing, it’s nearly impossible to predict where China or the United States will be willing to compromise. These tariffs can impact a lot of different areas for both countries, beyond the steel that US manufacturers might obtain many foreign sources. Until the details are finalized, and even possibly after they’re finalized, there could be more big changes in store for both countries and the manufacturers who use steel.
What’s Changing with the Tariffs?
There is an air of uncertainty while the tariffs are being finalized, and there is debate about whether they will go through or how much it will impact US manufacturers. Most businesses have noted that the price of steel has risen since the tariffs were announced and others have voiced concerns over steel becoming scarce in the meantime. However, many only see the tariffs as a trigger for domestic price increases, and future tariff adjustments will continue to affect domestic production.
Many in the industry are predicting that more manufactures will purchase steel now in order to avoid a price spike in the future, but that action could simply lead to an immediate shortage causing the very price spike they are looking to avoid. Manufacturers that work with a supplier like Hascall may be able to avoid involvement in a price spike like this because of their partnership with a supplier.
How is this Impacting the Cost of Steel?
While it will take a little bit for the full effect of the tariffs to be revealed, right now there is a rise in the cost of steel mostly due to the uncertainty and restriction of foreign supply. If the tariffs are not adjusted and continue as planned, manufacturers who use a significant amount of foreign steel for their business will see a rise in operating costs soon. There is no way to tell the full impact of the tariffs on the costs of foreign and domestic steel. Many manufacturers will want to keep a close eye on the tariffs and the cost of steel to ensure they don’t have a huge price hike while the impact of the tariffs is unclear or once the full impact of the tariffs is shown.
Take Advantage of Help to Keep Costs Low
Manufacturers in the US have the chance to partner with a supplier to make sure they can get the help they need to remain informed about the prices of steel and what they can do to keep their costs low. Hascall Steel Company reminds manufacturers that the full impact has yet to be seen and there’s still a lot that could change very quickly. Opening up the supply base for your manufacturing company and working with a trusted supplier like Hascall can help you minimize the impact this could have on your business.
Hascall Steel would love to partner with you to make sure you can still receive the steel you need and can help make sure you’re paying the lowest cost possible. They only obtain 2% of their steel from foreign sources, and they can help negotiate the steel prices for you to ensure you can get what you need when you need it without paying too much.
As a manufacturer, you need to keep on top of the changing costs of your supplies. With the tariffs being imposed and negotiated right now, predicting and managing your steel costs can be difficult. Your company could be significantly impacted if the price of foreign steel rises too high. Hascall Steel Company can help you keep prices low and ensure you can get the steel you need when you need it. Contact them today about creating a partnership with their company so you can stay on top of everything that’s happening and work to keep your costs as low as possible.