Rippling Effects of Increase in Tariffs of Steel and Aluminum
On Friday night, President Trump announced he wanted to raise tariffs on steel and aluminum products from 25 to 50 percent.
This increase could have an effect on steel manufacturers, sales, and services right here in Erie.
David Davis, the owner of Gene Davis: Sales and Services said their aluminum production has been impacted more than their steel products.
It's a waiting game for business owners like Davis wanting to know what comes next after President Trump announced an increase in tariffs.
"It may go up. It may go down. How long is is going to be in effect? We are in the summertime and we are in the north so, a lot of construction and a lot of things go on during the window of good weather, so it is in a key time now that will be effecting prices", said Davis.
Gene Davis Sales and Services works with commercial industries to manufacture all sorts of products like stairs and railings, to widgets, and parts. Because this is such a fluid situation, Davis said it effects the quotes they give their customers and their future projects as well.
According to Davis, "Right now, it's a challenging time because if you bid a job, might be a job you have next week, next month, or a couple months, you are not sure the prices. To bid the job, do you include the 25 percent of 50 percent on your material costs or do you put a disclaimer that the quote is only good for a certain window of time."
Davis said right now, supply and demand dictates pricing more than the tariffs, but it takes patience to see what happens next. "It's just a wait and see, everyone's not so worried in my industry because they are used to changes like this on daily basis", said Davis.
President Trump has received support from his recent announcement from local lawmakers including Congressman Mike Kelly.
Davis also said they experienced something similar during Covid with the supply and demand effecting price, so he feels that are better prepared this time around.