2018 Steel and Aluminum Tariffs
What the Steel and Aluminum Tariffs Mean To You
In recent news, this past Friday, Trump announced that there will be a new steel and aluminum tariffs. 25% import tariff on steel, and a 10% aluminum import tax. With this adjustment in import tariffs, a change in American steel mill production will be expected to be seen. These mills that process steel and aluminum now have to be capable of keeping up with the steady demands that the metal market have.
Issues arise for these metal production mills when it comes to producing new products because not all of these mills are convertible to create any type of steel product that needs to be made. Because of this, certain mills do not have the ability to meet demands, resulting in either a shut down or buyout from another source that has the means to meet these demands. Not only this, but people have claimed that imports take up too much of the market for us to stop using them, and will result in a lack of material for certain sectors of the market that are reliant on these materials.
With higher tariffs being imposed on steel and aluminum, people should expect to see the price of imports rise once this tariff is enacted. Scrap steel prices have been in a lull since the beginning of 2012, and since then they’ve been on a continual steady decline. With these tariff’s going to be implemented to United States importers, it is going to drastically increase the value of U.S steel. This means that scrap yards, recyclers, and anyone else who works with steel to make profit is going to see a huge increase in the prices they’re getting for their steel/steel products.
This is great news for these people because it’s going to boost the steel market back to where it once was. Small scrap yards will see huge returns because of the expensive product they’re working with. Not only will domestic steel price increase, but foreign steel and aluminum prices have the ability to rise because of market force from the United States, which is a good sign for the scrap metal industry as a whole.
With the U.S imposing these tariffs on foreign countries, the trend is typically that other countries will look at what tariffs they can put on the U.S that’ll benefit their own economy. Representative Kevin Brady, a Texas Republican said, “I think everyone in this room supports you holding China accountable for its overcapacity,” (Speaking to Trump about the overcapacity of scrap steel and aluminum), he followed that by saying too much use of tariffs can, “do as much damage as good.”, specifically talking about how this has the ability to hurt our imports from Canada and the EU. With the steel and aluminum industry likely to feel a shake up with this new tariff being put in place, domestic metal prices should expect to see a nice rise.
Increasing prices mean that these next upcoming months will are going to be a great time to sell that old rusty car on your lawn. Rising metal prices mean that you can be assured that you’re going to get top dollar for your junk car. And if you are a buyer of junk cars, own a recycling yard, or scrap processor, demand is going to grow. Don’t wait any longer to sell your junk car, contact You Call We Haul today and speak to a representative about how you can receive top market value for your vehicle.
For more insight on the steel and aluminim tarriffs, please read our sister blog here.
“Steel Scrap Price History” February 26th, 2018 Steel Benchmarker
“Why Steel and Aluminum Tariffs Matter to the U.S. Economy.” CNNMoney, Cable News Network,