Final Thoughts

We’ve heard from various steel trade groups, both American and foreign, manufacturers, and even the United Steelworkers (USW) union. But what do SMU’s survey respondents make of what’s happening in these tariff-happy United States?

Well, in our last mini-survey, we asked a couple of questions and got a lot of answers. Opinions are split, naturally. While responses to both of our questions leaned towards positive reactions to Trump’s moves, neither question got a majority positive response.

With so much unclear – we are definitely in the “fog of tariff” period – perhaps it’s good to take the temperature of industry participants along the steel supply chain.

A few themes that emerged in the comments were concerns over how tariffs would impact domestic manufacturing, some thinking it would level the playing field for the US, possible inflation, and, of course, people holding wildly opposing views.

For example:

“Thoughtless but on brand for this admin.”

vs.

“Rising tide likely will lift all boats.”

Let’s see what other respondents had to say.

What do you think of President Donald Trump’s threat to impose 25% tariffs on all imported steel and aluminum? And why do you think that?

“I expect pricing for everything will level at a higher rate.”

“We’re part of the niche of the niche, where steel tariffs will be a good thing for us.”

“It will be good, but I feel it will cause some short-term challenges with prices climbing.”

“The value of my unsold inventory just went up.”

“We buy significant amount of imports, and bad for the consumer.”

“Inventory values go up, buyers more willing to buy vs. sitting on the sidelines.”

“Level the playing field.”

“Manufacturers will get squeezed.”

“Will push up inflation, dropping demand.”

“Higher prices mean higher margins for anyone with material on the floor.”

“2018 decision was needed. Now this will be harmful.”

“Inventories will begin to rise.”

What do you think of President Donald Trump’s threat to impose reciprocal tariffs on all countries? And why do you think that?

“Tariffs are good for the US steel business. Maybe not so much for manufacturers and definitely not for consumers, but mills and SSCs love it.”

“Generally our purchases and sales are all domestic, so I feel this will level the playing field for us.”

“Leveling the playing field for American businesses.”

“Long overdue.”

“Manufacturers will get squeezed.”

“Customer relationships will be strained and contested.”

“This will increase pricing in the US for many items.”

“Why should the USA not do what is done by others?”

Looking ahead…

We’ve got murky waters in front of us. One thing that seems certain, there is more than just bluster behind the president’s reasoning. Things are happening, and awfully fast. Yes, no one knows what will occur tomorrow, or how things will play out in the tariff chess game. Still, it’s good to know what some of your competitors are thinking before you plan out your next move. Let’s just hope the board doesn’t get flipped and we’re left to pick up the pieces.

As always, thank you for your continued interest in Steel Market Update!