In October we discussed the rise of steel and aluminum prices due to the metal tariffs that were imposed in March of 2018. At Arizona Iron Supply in Phoenix, we want to keep you informed about what’s happening and how this might affect you as our customer. Here are some updates on the recent metal tariffs and the effects we might be able to expect from them.

The tariffs mean there is now an import tax on steel and aluminum produced in foreign countries. Mexico and Canada were originally exempt, but as of May 2017, these countries are also included. The tariffs on steel and aluminum imports are designed to boost domestic metal production.

METAL PRICES

As the cost of importing steel and aluminum has risen for metal supply companies like us, the cost to the consumer has also increased. The price of products that use steel and aluminum parts will continue to see steep increases. This includes things like appliances and cars, which could lead to accelerated inflation rates.

DOMESTIC METAL SUPPLIERS

The idea behind the tariffs is to move metal production from foreign countries to the US and boost domestic metal production. This has obvious benefits to domestic metal suppliers, as demand will increase for them, increasing profits.

JOBS

In the last twenty years many employees in the steel and aluminum industry were laid off due to an increase in importing these metals. As domestic metal demand and production increases, these jobs will return to the US. According to CNBC, “Aluminum companies have added about 300 jobs, and companies that process aluminum into finished products have expanded, generating $3.3 billion in investments that could employ 2,000 more workers.”

ECONOMY

While the long-term effects on the US economy are yet to be seen, the tariffs are designed to strengthen it. Opponents of the tariffs are concerned that there will be harmful effects on the economy. But the Economic Policy Institute stated in December that “the tariffs have shown to be a net-positive to the economy. In the next few years, we should see thousands of jobs created and billions of dollars in aluminum production, due to the Section 232 tariffs.” They predict over 3.4 billion dollars in new aluminum investments here in the US.

Here at Arizona Iron Supply, we are working hard to keep our prices affordable in the midst of these tariffs. Our top priority is you, our customer. We will continue to keep you informed as we become aware of further updates on the recent metal tariffs. We appreciate your continued business with us!

Images used under creative commons license – commercial use (1/11/2019) Pixaby