President Donald Trump has signed an executive order imposing a 25% tariff on steel imports, effective March 12. The move aims to reduce the impact of cheap foreign steel on the US domestic economy and protect national security.
Cleveland-based companies such as Cleveland Cliffs, which produces flat-rolled steel, are expected to benefit from the tariffs as they drive up the cost of foreign competition. However, manufacturers who use steel in their products face uncertainty about how the tariffs will impact their businesses.
Canada is likely to take the biggest hit from the tariffs, being the top US supplier of imported aluminum and steel. The Canadian Chamber of Commerce has warned that the move could lead to increased costs for Canadian businesses and consumers.
Industry experts predict that the tariffs will cause chaos in supply chains, particularly those involving passing parts back and forth between Canada and Mexico. Ford president Jim Farley said the 25% tariff across the US-Mexico border would blow a hole in the US industry and give free reign to foreign companies.
Some manufacturers, such as Parker Hannifin Corporation and Eaton Corp., are prepared to deal with the tariffs, citing past experience with similar disruptions. However, small and medium-sized businesses may struggle to adjust to the new prices.
The tariffs have both positive and negative effects for manufacturers. On the one hand, they increase local steel production and boost national security by reducing dependence on critical raw materials from abroad. On the other hand, they cause uncertainty and increased costs for manufacturers who are already struggling with rising material prices.
As the US steel industry adjusts to the new tariffs, experts warn that it will be a complex and challenging process.
Source: https://www.cleveland.com/news/2025/02/trumps-tariffs-how-a-25-markup-on-foreign-steel-and-aluminum-will-create-winners-and-losers-in-cleveland.html