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() President Donald Trump put tariffs on steel and aluminum last month, and businesses are already seeing an effect.
One family-owned metal manufacturer in Los Angeles that makes most of its products from American metals is eager to phase out imported material.
Advance Metal Products in California says tariffs will mean higher domestic demand for steel. Robert Schaffer Jr. of Advance Metal Products told he expects rising costs to keep his grandfather’s company going, though he has yet to calculate the financial impact.
Because of tariffs, Advance may cut back on the fabrication of aluminum products, since it will take years for more American smelting to ramp up. Still, businesses like Advance expect tariffs to lead to true American independence and more competitive pricing against manufacturers from overseas.
“In the long run, the decisions we’ve made 50 years ago have seemed like they’re paying off, so let’s hope it continues in this trend and will be even better,” Schaffer said.
Critics, though, argue that even with higher production of American steel and aluminum, supply would still be short of demand, leaving businesses facing uncertainty on how much prices will rise and for how long.
On Wednesday, Trump announced another round of self-described “reciprocal” tariffs.
These include 34% on imports from China (on top of the previous 20%, making it a 54% tariff), 20% on imports from the European Union, 46% on imports from Vietnam, 32% on imports from Taiwan, 24% on imports from Japan, 49% on imports from Cambodia, 10% on imports from the United Kingdom and 30% on imports from South Africa, among others.