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In light of the continuing steel tariff fallout, contractors are understandably worried about whether they can hold margins by passing along the commodity price increases with a markup. Some sheet metal contractors will try to hold gross profit by passing along an incremental price increase alone. Others will reduce profitability by only passing part of the price increase. There are other options available to protect your margins.
President Trump and European Commission President Jean-Claude Juncker recently agreed to pursue zero tariffs and subsidies for non-auto industrial goods. But there is no agreement yet.