U.S. Manufacturers See Higher Metal Prices as Tariffs Near

U.S. manufacturers are already feeling the impact of impending steel and aluminum tariffs, with prices surging and supply chain uncertainty growing. Glen Calder, who runs a small machinery factory in South Carolina, has seen steel prices jump over 15% in just two weeks. Meanwhile, Brian Nelson, CEO of HCC in Illinois, says suppliers won’t even quote him prices, waiting for tariff effects to unfold.

President Donald Trump’s planned 25% tariffs on steel and aluminum, set to begin March 12, were intended to boost domestic production. While U.S. mills have benefited, passing on higher prices, manufacturers that rely on these metals are caught in the middle. Midwest steel prices have jumped 12% in two weeks, while the same type of steel has risen just 6% in northern Europe and barely changed in China.

A Bain & Co. survey found 40% of executives expect double-digit increases in input costs, with 80% revising financial forecasts. Leon Topalian, CEO of steel giant Nucor, supports the tariffs, calling them the first step in Trump’s “America First Trade Agenda.”

Manufacturers relying on steel service centers or direct mill purchases are seeing orders canceled, delays, and panic buying. Nelson, whose company makes harvesting reels for farm equipment, describes being “the middle guy in the sandwich” between steel producers and large manufacturers like Deere and AGCO. He plans to pass the increased costs on.

Factory input costs are already rising, with an S&P Global survey showing a sharp increase in prices due to supplier-driven tariff hikes. The White House argues the tariffs give domestic producers “breathing room,” but smaller manufacturers like Calder say they can’t raise machine prices fast enough to keep up with surging costs.

For the full article, visit Reuters.com.