US Business Leaders React To Trump's New Steel And Aluminum Tariffs

 U.S. business leaders and trade organizations have already expressed anxiety over the potential impacts of President Trump's blanket, 25 percent tariffs on steel and aluminum imports.

Newsweek has reached out to the White House via email for comment.

Why It Matters

While some have praised the measure as potentially breathing life into America's domestic production capabilities, the tariffs are likely to raise costs for sectors reliant on the two metals. The duties could also potentially impact their access to overseas markets if affected regions impose retaliatory measures, as some have done.

What To Know

The U.S. imports over a quarter of the steel used for domestic consumption, according to MEPS International, and around half of its aluminum, per Reuters, both primarily from Canada.

According to the president's February 10 executive order, this import reliance "threaten[s] to impair the national security of the United States," and tariffs on these promise to encourage "investment and expansion" of production by domestic producers.

However, the duties on steel and aluminum, which came into effect last week, are expected to increase costs for industries including construction, automotive and transportation, machinery and equipment manufacturing, energy and utilities, as well as producers of appliances and consumer goods.

The announcement of the tariffs was greeted with immediate panic on the U.S. stock market, and their imposition a month later combined with wider fears about the impact of other tariffs to push the S&P 500 into correction territory on Thursday.

Business leaders have also continued to voice their frustration with the move, with one New York-based craft beer company telling CBS Evening News that the tariffs on aluminum—which comprise 25 percent of their production costs—are "obviously going to impact our bottom line."

Robert Budway, president of the DC-based Can Manufacturers Institute, said that Trump's tariffs on steel and aluminum "will increase prices for canned foods and beverages.

"Consumers will feel the inflationary impact of these tariffs at the grocery store," he added.

These concerns have extended beyond America's borders, with Gareth Stace, director general of UK Steel, a trade body representing the country's producers, describing these as "a devastating blow to our industry."

Executives have also expressed frustration at the stop-start nature of the plans—such as Trump's decision to double tariffs on Canadian metals, which was reversed within hours of the threat.

"We just had a brand we sell go out of business last week. We received an order from them on Monday and were going through our normal order," Forrest Webber, who owns an online home improvement store, told Business Insider. "It was strange that we hadn't heard back from our representative, so we went to their website and discovered they were closing due to the tariffs."

He added that businesses are unaware of "what's going to stick," with regard to the duties.

What People Are Saying

Aluminum Association President and CEO Charles Johnson said that there was "a lot to like" in Trump's metals tariffs, but stressed the need for "a reliable supply of affordable metal, which today comes in large part from Canada."

"President Trump's administration is aggressively pursuing multiple tariff initiatives on behalf of the broader U.S. economy," Johnson continued. "The U.S. aluminum industry needs certainty in this tariff landscape to support our growth and investment."

Over 20 can-producing firms, in a letter to President Trump, called the steel and aluminum tariffs "extremely detrimental to American food producers, farmers, and metal can makers and, hence, our nation's food security."

Michael Hanson, senior executive vice president at the Retail Leaders Industry Association said in a statement: "Stacking tariffs on household goods will also raise costs on American families, millions of whom have struggled through the worst bout of inflation in forty years."

The National Association of Home Builders (NAHB) Chief Economist Robert Dietz on Monday warned that "construction firms are facing added cost pressures from tariffs."

Citing data from the NAHB/ Wells Fargo Housing Market Index for March, Dietz added: "Builders estimate a typical cost effect from recent tariff actions at $9,200 per home. Uncertainty on policy is also having a negative impact on home buyers and development decisions."

Dak Hardwick, vice president of international affairs at The Aerospace Industries Association, as quoted by ABC News: "We are concerned about additional downward pressure on an already stressed American supply chain."

"We are investigating mitigation strategies that would minimize the impacts of new tariffs on our industry, and we hope to work with the Trump Administration to highlight the critical role we play in America's economic prosperity, national defense and deterrence," Hardwick added.

Organizations representing the American steel industry, in a letter to President Trump, said: "We welcome and applaud your actions to restore the integrity of the Section 232 tariffs on steel and your commitment to restoring a level playing field for American steel producers and their workers. We look forward to continuing to work with you and your administration to ensure the health and competitiveness of the American steel industry, which serves as the backbone of the entire manufacturing sector."

Pushpin Singh, managing economist at the Center for Economics and Business Research, told Newsweek that the 25 percent tariff on steel and aluminum imports were "particularly concerning" given the potential impact on supply chains.

"While the desired scenario is to force a shift from imported to domestically produced metals, domestic supply is unlikely to fully meet demand, at least in the short-term," Singh said. "As such, manufacturers are likely to absorb these tariff costs, squeezing profit margins and further weighing on business investment."

Steel Manufacturers Association President Philip K. Bell, in an article for the Pittsburgh Post-Gazette, wrote: "A stable supply of domestically produced steel is more important than ever to America's national, economic and energy security. In the face of the considerable pressure likely to come to exempt certain countries and weaken the tariffs, the president has stayed strong and continued to put America first on steel trade."

Ryan Young, senior economist at the Competitive Enterprise Institute, in comments shared with Newsweek: "Steel-using American industries such as autos and construction will face higher costs. They will pass most of these costs on to consumers. Today's news will also not help growing recession fears."