SMU Market Trends: Will Tariffs Impact Your Business?

The market was shocked when President Trump revoked the exclusions and implemented tariffs on steel and aluminum imports from the United States’ closest trading partners Canada, Mexico and the EU. In this week’s canvass of the market, Steel Market Update asked industry executives if they expect any direct impact on their businesses as a result.

Nearly 9 percent feel the decision will have no impact on their operations. Another 28 percent are convinced, or at least hopeful, that the Trump administration will reinstate the exclusions before any real damage is done. The majority, about 59 percent of those responding to SMU’s questionnaire, expect the tariffs on imports to tighten up steel supplies and cause prices to rise even further, which could potentially have both positive and negative effects on a given company. About 4 percent fear the trade restrictions will cause a shortage of steel by the end of the year.