U.S. steel prices up by double digits
An American Steel Index report by Business Forward Inc. says tariffs increased prices by 11 percent.
The recently released "An American Steel Index" report by Business Forward Inc. says steel tariffs enacted by President Trump increased prices of hot and cold-rolled steel by 11 percent since February. Meantime, the report notes that foreign steel prices have dropped.
Minnesota's Star Tribune reports:
Many U.S. iron and steel manufacturers and the United Steelworkers support the tariffs for helping slow the illegal dumping of underpriced steel into the United States. Many that buy steel and other raw materials to make products, though, said tariffs have escalated their costs and disrupted their supply chains.
Price variations were more extreme on certain types of steel. For example the report found prices for U.S.-made, hot-rolled steel jumped 13.5 percent in seven months, while cold-rolled steel rose 8.9 percent. During that same time, prices on steel made in the United Kingdom, Italy, China, Germany and Japan dropped 4.6 to 4.9 percent.
With no end to steel tariffs, many U.S. manufacturers report putting plans to expand on hold while making plans for an economic downturn. With both Canadian and Mexican officials asking their governments not to sign a NAFTA 2.0 agreement with the U.S. until their exceptions to the 232 tariffs are in place, the fallout over the steel tariffs is far from over.