FMA expresses concerns about announced tariffs

The Fabricators & Manufacturers Association, International (FMA), which represents the interests of the 1.4 million people employed in the U.S. fabricated metal product manufacturing industry, has issued a statement expressing disappointment in President Donald Trump’s announcement to levy a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum.

“One likely result of this action is to add headwinds to the market for American-made fabricated metal product producers. Just when this market had some sustained momentum, the specter of retaliatory duties and tariffs now hangs over this important manufacturing sector," said Ed Youdell, FMA president and CEO. "The association is concerned that jobs and job creation are at risk; those countries affected by this announcement will likely choose to circumvent the tariffs by producing and exporting low-cost fabricated metal parts rather than exporting steel and aluminum."

Added Phil Kooima, president of Kooima Co., an agricultural machinery fabricating firm based in Rock Valley, Iowa, and an FMA member: "This proposed tariff will disproportionately harm U.S. metal fabricators. Rising steel costs at home, but not in the world market, favor the importing of fabricated metal products from overseas suppliers. A better policy would be to import low-cost steel coil and plate and produce the fabricated products here in America. There are many more fabricating jobs here in U.S. than steel mill jobs so it is disappointing to have the president choose to help one industry over another.”

“Frankly, most analysts and observers never thought it would come to this,” stated Dr. Chris Kuehl, FMA's economic analyst. “There were so many reasons that imposing tariffs on imported steel was a bad idea. It instantly makes everything made of steel more expensive in the US—cars, buildings, equipment, etc. It instantly pits the U.S. against its major allies as we get the vast majority of our steel from countries like Canada, Japan, South Korea, Mexico, and other friendly states. It also guarantees a trade war as these nations are prepared to retaliate immediately.“Additionally, I don’t believe it is an overstatement to assert that U.S. allies are extremely angry at the Trump plan to impose tariffs on steel and aluminum and many have wasted little time in terms of reaction. The U.S. will likely be hit immediately with tariffs and restrictions from Europe, Japan, Canada, and dozens of other nations. The initial estimate is for these new barriers to cost the U.S. as much as 5 percent of its export volume—a serious blow considering that exports are 15 percent of the U.S. GDP.”