Key industries concerned over government shutdown’s impact on steel, manufacturing

The American Iron and Steel Institute (AISI), the National Association of Manufacturers (NAM), American Metals Supply Chain Institute (AMSCI), and the Recycled Materials Association (ReMA) have all warned of the critical impacts the shutdown may have on industry.  

Steel advocates speak out

AISI warns the US will miss critical data on steel imports and foreign production. The impact undermines the current measures made by the industry to uphold the enforcement Section 232 protections.  

“The most immediate and significant impact of the government shutdown will be the inability to get critical data, analysis and information on steel trade through the Department of Commerce’s program for tracking steel import licenses — which provides a needed early-warning system for American steelmakers regarding foreign imports,” stated AISI President and CEO, Kevin Dempsey.  

Dempsey added, “Unfair trade practices and massive overproduction of steel, which can result in increased imports into the US, is the biggest challenge faced by the American steel industry. Without the ability to monitor those trade flows in real time, steel imports could surge into our markets undetected.” 

Supply chain group highlights potential issues

AMSCI’s customs committee chair, Steven Baker, said Customs and Border Protection (CBP)’s frontline operations remain unaffected. Noting that the Biden administration designated 97% of the CBP workforce as “essential workers.” They will continue to perform their duties without pay throughout the shutdown.

Baker notes a higher likelihood of delays and processing slowdowns. The support provided by office workers, inspectors, and import specialists will be unavailable or scaled back, causing processing delays.  

He also notes the supply chain issues will largely occur in policy functions.  

“Rulings, protest decisions, resolution of penalty and liquidated damages petitions for relief will be delayed. Educational activities, training, liaisons with trade groups will be suspended or restricted. Travel is at minimum levels. Processing of refunds may be delayed, communications, including website updates, will be delayed or suspended, audits will be suspended, and there may be delays in reviewing EAPA and UFLPA allegations,” he cautioned.  

Manufacturers call for certainty

National Association of Manufacturers (NMA) President and CEO Jay Timmons called for certainty from the government.  

Timmons’ remarks reflect comments that have echoed across US markets in 2025, highlighting the impact greater uncertainty has on the manufacturing environment. Noting especially the need for stability in operating a business.  

“Manufacturers need certainty, not disruption. Our leaders in Washington must come together and keep the government open, so it continues working for the American people. From supply chains and permitting to regulatory certainty, product approvals and facility inspections, manufacturers rely on the government to do its job and provide the stability that drives growth,” Timmons said.  

Recycled materials’ association warns of inefficiencies

ReMA’s website says a short shutdown does not pose a concern. However, the association warns that after one to two weeks, the recycling industry will face serious consequences.

Specifically, when the US Environmental Protection Agency loses funding, staff furloughs will delay permits. In addition, enforcement will lapse, creating dangerous conditions. Meanwhile, ReMA, like other advocacy groups, warns of slower port processing and wider inefficiencies from a lack of operational support.

ReMA did not directly comment upon request.  

Federal government says shutdown may lead to permanent job cuts

President Trump may slash thousands of federal jobs as Congress remains deadlocked, despite layoffs rarely following shutdowns. This shutdown marks the 15th in US history.

When speaking to reporters on Tuesday, the White House Press Secretary, Karoline Leavitt, commented on the potentially permanent government cuts.

“We’re going to look at agencies that don’t align with the administration’s values, that we feel are a waste of the taxpayer dollar,” Leavitt told reporters on Tuesday.  

She added, “It’s likely going to be in the thousands.”