Impact of New Steel and Aluminum Tariffs on U.S. Businesses
- Schulz Trade Law
- 6 days ago
- 3 min read
Updated: 2 days ago
Impact of New Steel and Aluminum Tariffs on U.S. Businesses
WBAP Morning News WBAP Radio, Dallas-Fort Worth
June 5, 2025
On June 5, 2025, Michelle Schulz, Founder and Managing Partner of Schulz Trade Law, joined the WBAP Morning Show in Dallas-Fort Worth to discuss the implications of the newly implemented 50% tariffs on imported steel and aluminum. Hosted by Ernie Brown, Karl Marion, and Jay, the conversation shed light on how these tariffs, enacted under Section 232, are reshaping the landscape for U.S. businesses and consumers alike. Below, we dive deeper into the key points raised during the interview and explore the broader economic ramifications.
The Scope of the Tariffs
The tariffs, which target imported steel and aluminum, have far-reaching consequences due to the widespread use of these materials in various industries. As Schulz explained, steel and aluminum are integral components in products ranging from automobiles and aircraft to everyday items like wire cables. The tariff provisions are notably broad, meaning even small components containing steel or aluminum derivatives may be subject to the 50% duty. This expansive coverage has caught many manufacturers off guard, forcing them to reassess their supply chains and cost structures.
Approximately 25% of the steel used in the U.S. is imported, meaning domestic production alone cannot fully meet demand. Industries such as automotive and aerospace, which rely heavily on steel, are particularly vulnerable to these changes. Schulz noted that aircraft manufacturing is currently under review for similar tariff measures, signaling potential further disruptions.
Supply Chain Disruptions and Compliance Challenges
One of the immediate effects of the tariffs is a slowdown in the movement of goods. Schulz highlighted an increase in seizures and detentions at U.S. ports as customs authorities enforce the new regulations. Businesses are now tasked with verifying the country of origin for their imports and ensuring accurate tariff codes, a process that is both time-consuming and resource-intensive. Even customs brokers, who facilitate the import process, are experiencing delays as they navigate the heightened scrutiny.
These disruptions are forcing companies to pause and reevaluate their sourcing strategies. For some, this means shifting to domestic suppliers, but as Schulz pointed out, locally sourced steel and aluminum often come at a premium compared to the previously "dirt cheap" imported alternatives. This shift is likely to drive up production costs, which could ripple through the supply chain and ultimately reach consumers.
Economic Impacts on Businesses and Consumers
The economic implications of the tariffs are significant. For businesses, the increased cost of raw materials like steel and aluminum translates to higher production expenses. Companies that once relied on affordable imported materials must now either absorb these costs or pass them on to customers. Schulz predicted that consumers will likely bear the brunt of these changes, as the prices of goods—from cars to household products—are expected to rise.
The tariffs also pose a challenge to U.S. competitiveness in global markets. Manufacturers that rely on imported steel to keep costs low may find it harder to compete with foreign companies unaffected by these duties. Additionally, the administrative burden of compliance, including verifying supply chain details and navigating customs processes, adds another layer of complexity for businesses already grappling with tight margins.
Looking Ahead: Navigating the New Trade Landscape
The introduction of 50% tariffs on steel and aluminum marks a pivotal moment for U.S. trade policy. While the measures aim to protect domestic industries, they also introduce new challenges for manufacturers, importers, and consumers. Businesses must adapt by exploring alternative sourcing options, optimizing supply chain logistics, and preparing for potential cost increases. For consumers, the tariffs may mean higher prices for everyday goods, underscoring the interconnectedness of global trade and local economies.
Michelle Schulz’s insights on the WBAP Morning Show highlight the need for businesses to stay informed and agile in response to evolving trade policies. As the effects of these tariffs continue to unfold, firms like Schulz Trade Law will play a critical role in helping clients navigate the complexities of compliance and minimize disruptions.
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