Latest S232 tariffs are disruptive, admit US manufacturers

The co-owner of a fabrication shop based in the Pacific Northwest said that after “Liberation Day,” the company began including a five-day-only clause in its job quotes. The fabricator buys primarily hot- and cold-rolled coils for its projects.  

“The price changes more often now, so we include a note in customer quotes that only guarantees the quoted price for five days. That’s all my distributor can give me,” said the shop owner. 

The same owner noted, “I am a little nervous. The first round of tariffs did not have too big an impact; most customers will pay slightly higher prices. Granted, we do work for very well-funded general contractors. There is a good amount of work around here. We’ll find out what happens when the 50% kicks in.” 

A California-based agricultural equipment OEM says if tariffs add bulk to the already hefty equipment price tags, then he might see farmers delay their purchases. 

“Most of the machines customers order because they need them by harvest. I can see some waiting another year if they think they can save more, or if interest rates will come down,” said the OEM. 

“I negotiated it so that all of our steel and steel parts that have tariffs on them are currently absorbed by me and the producer. I’ll take some of the cost, but the 50%, that I will have to pass on some of it. At least half between me and the customer,” he added. 

The results of the National Association of Manufacturers’ 2025 Manufacturers’ Outlook Survey revealed that optimism among domestic manufacturers decreased to its lowest level since the second quarter of 2020. 

Manufacturers cited trade uncertainty as the top business concern, followed by increased raw material prices.  

A former auto executive with over four decades of experience in various roles within Detroit’s “Big Three” predicts that steel and aluminum price increases will drive car prices higher.  

“Fewer people will buy new cars if they’re out of budget. And, expecting the industry to reshore while taking the hit on input costs adds more of a challenge for carmakers,” said the executive.  

He explained that automotive manufacturers try to account for uncertainties and variables in their predictive models.  

“You have to plan for efficiency. Uncertainty in the market creates inefficiency. Inefficiency costs everyone,” he said. 

Service centers and distributors reported soft demand for domestically produced hot- and cold-rolled coil, plate, and OCTG products this week.