Aluminum and Steel Tariffs Could Mean Supply Issues

Tariffs on steel and aluminum imports from Canada, Mexico, and the European Union (EU) went into effect in June, 2018. National security investigations of steel and aluminum imports were cited as the impetus for imposing tariffs of 25 percent on steel and ten percent on aluminum. Early in 2018 the Department of Commerce recommended tariffs, concluding that imports of steel and aluminum threaten U.S. national security.

tariffs on aluminum and steel aren't good

Tariffs took effect in March, 2018. Canada, Mexico, and the EU had temporary exemptions, which expired on June 1, 2018. The Trump administration announced on May 31 that the exemptions would not be renewed due to insufficient progress in NAFTA negotiations and talks with the EU.

Since the June 1st tariffs took force and word of countermeasures against U.S. products spread, analysts discussed the unintended consequences. Key among these was the impact on manufacturing and the economy. Domestic manufacturers that relied on global supply chains considered how to navigate the fallout. Many U.S. manufacturers applied for exclusions through the Commerce’s Bureau of Industry and Security.

Tariffs Trigger Instability

These tariffs are one example of how politics and world economies can trigger instability and create serious supply issues. Supply risks have a detrimental effect on a business’s productivity and profits. Companies increasingly rely on overseas suppliers and global supply chains. Consequently, small to mid-sized companies are especially susceptible to supply risks, as larger buyers often get preferential prioritization.

Developing strategic partnerships with dependable suppliers is the best way to mitigate supply chain risks. Winston Manufacturing offers many advantages. In addition to comprehensive metal fabricating capabilities and access to the newest precision fabrication and metal bending equipment, Winston Manufacturing offers supply chain security through bulk material buying leverage. We secure the best pricing on materials, and have stability with our suppliers due to high volume purchasing power.

Contact us today to learn how we can help you as a dependable manufacturing supply partner.

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