What Are Metal Tariffs and What Could They Mean?
March 15, 2018
President Trump is possibly introducing metal tariffs for imports into the US. So what does this mean for the market and consumers in general?
With the exception of Canada and Mexico, metal tariffs would affect the cost of trade for countries importing metal products into the US. More specifically, countries that bring in raw aluminum or steel into the US would be charged a percentage to import it for further production of items.
If and when these tariffs go into effect, the US scrap metal market could be impacted in a few ways, especially those who produce products, those who process metals, and consumers. We’ll talk about each of these groups in turn below.
- Domestic companies. Companies within the US that rely on international companies for metals will have to adapt to these higher costs. Adapting could include eliminating jobs or cutting employees, charging higher prices for their goods, decreasing business, or finding a different supplier of metals – possibly a domestic processor.
- Metal processors in the US could benefit in a positive way should more companies seek them out for metals. Should this happen, there could be an increase in production of metal, in turn increasing demand. The higher demand could affect scrap prices. However, if the spike occurs to quickly, an overflow could occur which would actually bring prices down.
- Consumers could also feel the impact of tariffs through higher process on goods like automobiles.
We hope you found this information on tariffs helpful. If you would like to learn more about scrap metal prices, please call us today.