Monday, July 2, 2018

The Trump Tariff Experience: "Base steel prices have already increased 20 percent since March.”


The June 2018 edition of the closely monitored Manufacturing ISM Report On Business is out.

The report includes comments from manufacturing industry insiders.

Here are some of those comments:
“U.S. tariff policy and lack of predictability, along with [the] threat of trade wars, [is a] causing general business instability and [is] drag on growth for investments.” (From Electrical Equipment, Appliances & Components sector)
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“Electronic component supply issues continue to disrupt production.” (From Transportation Equipment sector)
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“We export to more than 100 countries. We are preparing to shift some customer responsibilities among manufacturing plants and business units due to trade issues (for example, we’ll shift production for China market from the U.S. to our Canadian plant to avoid higher tariffs). Within our company, there is a sense of uncertainty due to potential trade wars.” (From Food, Beverage & Tobacco Products sector)
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“The Section 232 steel tariffs are now impacting domestic steel prices and capacity. Base steel prices have already increased 20 percent since March.” (From Fabricated Metal Products sector)
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"Lead times for parts and materials are moving out, and we are seeing commodity cost pressures increases with the threat of tariffs. Additionally, suppliers are asking for more price increases.” (From Machinery sector)
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“The uncertainty of U.S. tariffs and the Canada/Mexico/E.U. retaliatory tariffs continues to cloud strategic planning efforts. Contingency planning (for tariffs) is consuming large amounts of manpower that could be used for more productive projects. The tariffs are improving margins in our raw material businesses; however, our businesses which are further up the supply chain are seeing significant inflation.” (From Miscellaneous Manufacturing sector)
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"The steel tariffs continue to drive uncertainty. Projects and services using steel have limited days that prices are good for.” (From Paper Products sector)

-RW  

2 comments:

  1. What Trump, his mwrry band of economic charlatans and their Trumpista admirers don't understand is that even if the other governments relent and lower their tariffs, that doesn't mean the disruptions are going to be mended quickly or that the layoffs resulting from Trump's childish playing are going to be reversed. It doesn't mean all tariffs would be reduced equally, not even the new ones. What victory looks like is not known.

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  2. I'm glad I bought my Republic National Steel guitar before these stupid tariffs kicked-in, or I would've paid a hefty increase over the $760 I did pay.

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