President Trump decided not to extend the deadline that exempted trading partners including Canada, Mexico, and the EU from the tariff on steel and aluminum enacted in March. Other countries have become added to the list that face volume limits on the amount of steel they can bring into the U.S. Previously, Canada, Mexico, and the EU became excluded as a show of good faith as the U.S. re-negotiated trade agreements. Canada, in particular, provides a significant portion of U.S. steel, so adding the tariff on steel coming in from Canada becomes set to significantly increase the cost of raw materials.
The Roller Die + Forming team is closely monitoring the tariff situation and the associated costs of metals for our customers. We have the suppliers in place to ensure we have access to materials and will meet our production deadlines, but the cost of the raw material will continue to change as the U.S. re-negotiates trade agreements with other countries and the tariff situation continues to evolve.
For companies concerned whether their products will become impacted by these tariffs, knowing the right course of action may require a complete supply chain review. While the tariffs seem far reaching, there are still some exceptions that may apply, such as certain grades of stainless steel. Further, the Commerce Department is currently reviewing requests for exemptions. They are also considering and soliciting public comment on automotive part imports and associated potential tariffs.
Another option open to some companies is to source parts from non-U.S. suppliers such as Roller Die + Forming’s Queretaro, Mexico facility. We understand that it takes time to make a significant change in the supply chain of an existing part, but new parts considering manufacturers should take into consideration the current climate of fluctuating costs and tariffs. While a cost to transport and import finished parts when compared to an increased cost of material when having the part manufactured in the U.S., this might become a good decision.
Our experienced sales team is ready to work with you to review options and provide you with costs as you navigate the current tariff situation. Please reach out to us to learn more.