Final Thoughts

When on calls with steel service center and manufacturing executives, one of the questions that always comes up is my view on the economy. I am not an economist and I defer to CRU and to economists like Alan Beaulieu of ITR Economics (Alan speaks at the SMU Steel Summit Conference). I know Dr. Beaulieu’s long-range view is for a strong economy in the 2020s, though he has been forecasting a slowdown later this year.

The question I pose to the manufacturing and distribution executives is, how much longer can the Section 232 steel tariffs stay in place without affecting the economy? With steel costs higher in the U.S., and threats against specific products, there comes a point when the higher cost can no longer be absorbed by the manufacturing companies (especially now that we are in a new calendar year and new contract pricing).  This morning the New York Times reported on the impact tariffs where having on business, with many die-hard American companies now considering moving production to Canada or Mexico due to the damage tariffs are doing to their businesses.