With President Trump’s recent announcement of the ‘steel tariff’, the butterfly effect will be far reaching with Carlson near the core of those affected.
If you’ve purchased any soda, beer or other beverages in a can, driven or been a passenger on a plane, train or automobile, been to or watched a sporting event in a stadium, live or work in a building, used kitchen appliances or pretty much any other facet of everyday life, this tariff will have consequences for you. This is doubly true for US manufacturers.
President Trump recently announced a global 25% import tax on steel and a 10% import tax on aluminum with the goal being to lower America’s reliance on other countries, mainly China, for our aluminum and steel needs thus boosting our domestic production and economic independence.
This move could also provide new job opportunities for American steelworkers and provide our economy more long term security, but many are worried about the ramifications these tariffs will bring.
At Carlson, ‘Made in the USA Starts Here’ is more than just our tagline, it’s what we do every day. From the steel we buy, to the manufacturing processes we use to the consumer goods and infrastructure our customers build, it’s a long supply chain that relies heavily on steel and aluminum. Any increases in pricing can affect any or all of these stages from raw material to finished product, which ultimately ends up hitting the wallets of American citizens.
There’s debate as to how much the price jumps are going to be, with Century Aluminum CEO Michael Bless stating in an interview, “It’s important to put this all into context, so for example if a 10% tariff (on aluminum) got totally translated into the end price of a motorcar, which is unlikely to do, that would raise the price of your car by $37 for a $30,000 car”.
But the auto industry isn’t as optimistic and thinks it will be much higher. There are also additional costs in finding new suppliers which have the potential to alter the manufacturing process since not all metals are perfectly interchangeable. This also does not take into account the 25% tax on steel, which is a major component in automotive manufacturing.
For now, the true cost and benefits of these new tariffs are yet to be seen, but the short term forecast is likely price increases across a wide range of industries.