The manufacturing sector is quite alarmed by President Trump’s proposed tariff of 25% on imported steel and 10% on aluminum.
President Trump’s plan to impose 25% tariffs on steel and 10% tariffs on aluminum imports has prompted diverse industry reaction. Industries including auto, machinery, construction, and financial worry about negative effects while unions and steel manufacturers say it will protect American jobs and companies.
The auto companies, in particular, have made it known the increase will have adverse effects on the industry as higher prices will push down demand and eventually could lead to job loss.
Other sectors such as metalforming, appliance and aluminum aren’t in agreement that tariffs will solve the problem. On the other hand, some unions see the new rules as a way to protect US workers.
Additionally, the tariff situation is affecting NAFTA talks as well.
Click below for slideshow
AMERICAN INTERNATIONAL AUTOMOBILE DEALERS ASSOCIATION
“These proposed tariffs on steel and aluminum imports couldn’t come at a worse time,” said Cody Lusk, president of the American International Automobile Dealers Association. “Auto sales have flattened in recent months, and manufacturers are not prepared to absorb a sharp increase in the cost to build cars and trucks in America.”
HYUNDAI SAYS TARIFFS COULD INCREASE COSTS
“Changes to the existing tariff structure could negatively impact our current U.S. production and further expansion,” said Jim Trainor, a Hyundai spokesman. “Imposing tariffs on steel could increase production costs, which could lead to higher prices for U.S. consumers, and, potentially, decreased demand.”
AFL-CIO FAVORS NEW TARIFFS
For years, we have called attention to the predatory practices of some steel exporting countries. Such practices hurt working people and cheat companies that produce in the U.S. We applaud the administration’s efforts today to fix this problem. Effective enforcement of trade laws, including section 232, is critical to leveling the playing field and ensuring that U.S. steel producers and their employees have a fair shot in the global economy. This is a great first step toward addressing trade cheating.
METALFORMING, TOOLING ASSOCIATIONS VOTE NO
Roy Hardy, President of the Precision Metalforming Association, and Dave Tilstone, President of the National Tooling and Machining Association issued this statement: “The tariffs will lead to the U.S. once again becoming an island of high steel prices resulting in our customers simply importing the finished part. The lost business to overseas competitors will threaten thousands of jobs across the U.S. in the steel consuming manufacturing sector, similar to our experience in 2002 when the U.S. last imposed tariffs on steel imports. Those “201” steel tariffs resulted in the loss of 200,000 American manufacturing jobs (more than employed by the entire domestic steel industry) because of high steel prices due in large part to the tariffs.”
ALUMINUM ASSOCIATION SAYS ISSUE NOT SOLVED
“Unfortunately, the tariffs proposed will do little to address the fundamental problem of massive aluminum overcapacity in China, while impacting supply chains with vital trading partners who play by the rules,” said Aluminum Association CEO Heidi Brock. “We fear that the proposed tariff may do more harm than good, hurting rather than helping the 97% of aluminum industry jobs in mid-and-downstream production processes.” Aluminum Association President & CEO Heidi Brock
THE AIR-CONDITIONING, HEATING, AND REFRIGERATION INSTITUTE AGAINST TARIFFS
“As major users of steel and aluminum, we have been proactive in explaining to the administration that the HVACR and water heating industry would be negatively impacted by an increase in tariffs, as would the consumers that rely on the products we manufacture,” said AHRI CEO Stephen Yurek. “While we have been pleased with the Trump Administration’s enthusiastic support for manufacturing, we believe this step to be injurious, rather than helpful, to our efforts to increase American manufacturing and create jobs.”
TOYOTA WARNS OF ADVERSE EFFECTS
Toyota Motor Corp., which plans to build a new $1.6 billion factory in Alabama with Mazda Motor Corp., said the administration’s decision will “adversely impact” auto companies by raising costs and prices of cars and trucks sold in the U.S. More than 90% of the steel Asia’s biggest carmaker needs in the U.S. is from the country, it said.