While executives around the world are scrambling to offset Trump’s movements to impose 25%tariffs on aluminum and steel, business and industries in the United States also have a brace on the negative impact of tariffs.
Does Trump’s tariffs achieve their goals?
The goal of Trump’s tariffs is to accelerate the manufacturing and creation of more jobs, protect the competition with imported products, and have a low trade deficit to build a domestic industry by putting political pressure on other countries. However, 25%of tariffs on imported metals may not be effective in fostering domestic production as much as the previous restriction rounds that started in 2018. Since these measures, aluminum’s US production capacity has decreased by 32%, while steel has decreased 3.6%. According to the Bloomberg report.
Trump was aimed at steel and aluminum for tariffs in accordance with the National Security Law of the Cold War in 2018. Two years later, the number did not look encouraging, and TOI wrote. The US steel industry has added 1,000 jobs. However, domestic steel prices have risen because tariffs have made more imported steel costs. Each of the 1,000 jobs finally paid $ 900,000 for US consumers. However, 75,000 jobs (steel products) that may have been added to the industries that produce automobiles, washing machines, etc. did not occur because the steel products that are expensive are expensive and there is no competitiveness in cheaper imports. For two years, US companies have submitted 100,000 requests to be exempt from steel import tariffs.
A White House official said the exemption had eroded the effect of such measures. Trump later granted several countries’ exemptions, including Canada, Mexico and Australia, and struck a duty -free dealership for Brazil, Korea and Argentina, according to the dictionary.
Philip Bell, chairman of the Steel Manufacturers Association, said, “We enact 25%of the tariffs on steel imports and applaud the president to eliminate exclusion, sculpture and quota based on old data. Bloomberg Columnist (Bloomberg Collectist) will be provided with danger from Trump tariffs, and the tariffs can be carescent according to the response of the US furniture, target countries and both companies, and can contribute to the increase in costs and slow down growth. Considering the vulnerability of low -income consumers and unexpected inflation over Trump’s first term, “Steel and Aluminum Industry welcomed Trump’s tariffs. This is a lot.
US companies affect the braces of tariffs
From Coca -Cola, Ford and Corti to small aluminum, aerospace and device companies, companies are expected to be affected by Trump’s movements, and Ford CEO JIM Farley has added “high cost and confusion” to the US business so far. . But Farley aims to strengthen the US auto industry as a whole.
Companies from all over the country warned of the fall of tariffs, and many manufacturing industry found that it was difficult for many companies to plan the next stage or decide whether Trump would follow the signal policy movement. Ford said at a Tuesday analysis meeting that it is considering the area to build inventory to prepare for the potential tariffs on 25%of the tariffs on imports between Mexico and Canada.
US companies warned of the fall of tariffs, and many manufacturers said it was difficult to plan the next stage. “There are so many things we don’t know. We may not be in place. We may be exempt at all.” The company’s earnings conference calls on Tuesday. Executives use several strategies, such as changing the mix of income or delivering costs to consumers.
For example, Coca -Cola says that if aluminum cans are more expensive, they can change their income to rely more on plastic bottles. Fragrance Company Coty said it is increasing its inventory in the United States and increasing the production of perfume in North Carolina. Coca -Cola stocks rose 3.6% on Tuesday, while Corti stocks fell 7.4%.
General Motors reduced the inventory of the international plant by 30% to 40% before Trump took office on January 20. However, if the supplier is affected, it can also be hit by automakers. AUTOLIV, a global auto supplier, told Reuters that it plans to pass the cost of tariffs on automakers.
According to Bernstein analysts, Trump’s tariffs in the short term can cost $ 110 million in one year without additional costs of $ 110 million and major production. Detroit 3 is one of the three most exposed people. According to Barclays’s November report, Stellantis produces 39%of North American vehicles in Mexico and Canada, 36%of GM and 18%for Ford Motors. The majority of this vehicle are heading to the United States. VW produces about one -third of the North American fleet in Mexico, and Barclays said, including the most popular and inexpensive vehicles such as Jetta, Tiguan and TAOS.
Century Aluminum, headquartered in Chicago, which runs an aluminum smelter in the United States, said it strongly supports tariffs. Jesse Gary, CEO of the century, said, “Trump’s decisive behavior will protect national security and horizontal stadiums for aluminum workers in the United States. However, some US companies urged Trump to consider the long -term impact of tariffs on the metal industry. “A long -term strategy is needed to increase the amount of aluminum produced in the United States.” Rod and Billet produced by aluminum used to make wheels, window frames and other products told Reuters. He said that due to tariffs, the price hike faced by perennial students would ultimately reach the average consumer.
Garry Douglas, president and CEO of North Country Chamber of Commerce, says REUTERS StockFiling is picked up based on more than 40 local manufacturers and warehouse operators in recent weeks. “There is no ability to suddenly replace household goods with aluminum more than half of Quebec,” he said.
Trump tariffs hold less of small business owners.
According to the AP, Trump’s widespread tariffs are already relieving the owners of small businesses that are already dealing with strict profit margins, AP reported. Sandra Payne, the owner of Denver Concrete Vibrator, imports steel and other raw materials for her business. Her company creates a tool for settling concrete and other industrial tools. Most of the steel used by the company comes from China and get materials in Canada and Mexico. “Small companies are operating very small margins. So 25 % of all products are hurt,” she told AP. “And we can’t raise the price every time we get to us. So we’re losing a lot of money.”
In addition to steel and Chinese tariffs, other tariffs on Mexico and Canadian products have been temporarily suspended but can be implemented later. Therefore, small business owners still need a strategy to alleviate tariff costs.
Bar Zakheim owns Better Place Design and Build, a contract project of San Diego and specializes in accessible housing units or ADUs. He said he was especially worried about wood. “This item has already been more expensive for the last few years due to supply chain and forest fires, and much of our wood has come from Canada.” “These tariffs will make everything we do quite expensive when expensive housing markets and high interest rates are already increasing profitability.”
The Payne of the Denver Concrete Vibrator added that tariffs will have a domino effect. “I sell it to other businesses and not sell it to the end user. So I will line up all things that happen to me,” she told the AP.
(Including the input of the agency)
