Since the tariffs were instituted and particularly dating back to when the NAFTA and EU exemptions expired, domestic manufacturers have been feeling the impact. From the recent Beige Book report and noted by the Wall Street Journal, one manufacturer says “he could not get the quality of steel needed domestically and anticipated losing business to foreign competitors who are not faced with steel tariffs.” Another manufacturer made a note that the steel tariffs have been chaotic to their supply chain by disrupting orders, increasing prices and causing panic buying.
Next on the horizon are sweeping tariffs on automobile imports. Despite growing resistance from the automobile industry we seem to be pushing closer to implementing new tariffs on a $176 billion dollar industry. We will cover this more closely as decisions are made and relevant information hits the news.
While we expect to see more of a trickle down effect on scrap prices its tough to forecast forward. China has always been the biggest buyer of American scrap but that may not be the case now. Lets hope we continue to have a strong domestic demand for scrap metal because there certainly won’t be a shortage of it on our hands. If you would like to listen to us talk a bit more on the subject and other work we do in the automotive industry you can listen to a radio interview myself and CEO Joe Hearn did on a local station.