KMOX: Steel tariffs have doubled...what's the impact on Granite City Steel?
- Schulz Trade Law
- Jun 11
- 2 min read
Steel tariffs have doubled...what's the impact on Granite City Steel?
June 11, 2025
Michelle Schulz, Founder and Managing Partner at Schulz Trade Law, joins the show to talk about the Trump administration's tariffs on steel and aluminum, and how it impacts local steel manufacturer Granite City Steel.
The Double-Edged Sword of Domestic Protectionism
The recent doubling of tariffs on steel and aluminum—echoing Trump-era policy—has placed domestic manufacturers in a bind. While the move is intended to bolster U.S. steelmakers, it significantly raises costs downstream.
“When we put 50% tariffs on steel, we're actually increasing the price of products that are made from steel… manufacturers have to choose: import at 50% or buy U.S. steel, which is more expensive.” — Michelle Schulz
Michelle notes that while sectors like steel production see temporary boosts, broader manufacturing jobs suffer due to increased costs. During Trump’s first term, for instance, 1,000 steel jobs were gained, but an estimated 80,000 U.S. manufacturing jobs were lost because of downstream price hikes.
The Hidden Cost to Consumers and Communities
Beyond industrial trade-offs, Schulz emphasized the real-world effects on communities and consumers. From pharmaceuticals to insulin syringes, higher steel prices are quietly inflating essential goods and services.
“There’s steel in so many things… I’ve talked to pharmaceutical companies about needles. At least twice as much for a flu shot needle. That flows down to every one of us.” — Michelle Schulz
While Granite City Steel and similar plants may benefit in the short term, she warns the outcome may not be sustainable. U.S. steel remains costly—even with tariffs in place—leaving businesses no clear, affordable path.
Legal Gray Areas and Economic Manipulation
The use of the International Emergency Economic Powers Act (IEEPA) to justify tariffs is raising legal alarms. Originally meant for wartime emergencies, Schulz and the Court of International Trade question its misuse.
“The tariffs he’s imposing under IEEPA are intended for wartime… even the CIT thinks there’s some illegal stuff going on.” — Michelle Schulz
She points to a concerning trend of political favoritism, where companies aligned with the administration could receive favorable exemptions. “We're seeing some companies treated more favorably,” Schulz notes, “especially after the Foreign Corrupt Practices Act was paused, which regulates bribery.”
Closing Thought on Steel Tariffs
In the face of rising costs, staffing shortages, and legal controversy, Schulz concludes that U.S. businesses are scrambling to minimize loss, seeking legal duty reduction strategies or, in some cases, illegal shortcuts.
“Our clients are really hustling to pay the lowest duty possible or take advantage of special duty programs. Unfortunately, some companies—not mine—are going illegal routes.”
Host: Amy Marxkors. // @AmyMarxkors. and Chris Rongey @ChrisRongey
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