Lacks sufficient domestic steel production to meet demand, leading to inventory hoarding, price hikes and a shift in decision making based on replacement costs rather than purchase prices . While innovation and adaptation are underway, there’s concern over whether the trade policy shift will persist long enough to yield lasting benefits . Many United States businesses involved in global trade are experiencing a sea of change and a sea change . The president Donald Trump administration doubled down on tariffs with its reinstated section measures, slapping % duties on steel imports and eliminating country exemptions while introducing stringent melted and poured requirements to qualify for duty-free status .
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The metals industry is bracing for impact . Trump prepare effective preheader texts is getting serious about this, shep hickey, ceo at metal digital marketplace bryzos, told payments karen webster . He’s trying to level set trade imbalances and get the domestic engine of manufacturing really running at a higher rpm . What he’s doing is a kind of ‘anaconda plan,’ hickey said . He’s closing off all possible entrances . The broader implication is that importers are out of escape routes .
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In the first iteration of the steel tariffs during Trump’s initial term, importers found ways around the duties by bringing in unfinished goods or routing shipments through countries like Canada . It was a bit of a charade… they were straw countries, hickey said . Businesses could import as an unfinished product, finish it elsewhere, and sidestep the what is the biggest disadvantage? tariffs . Now you can’t really do that because everybody has a tariff . Still, even as the administration pushes for domestic revitalization, the u .
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S . Does not have the capacity to meet its steel demand . Price pressures and margin compression the supply shortage has already triggered price hikes, not just because mills are charging more, but also because distributors are thinking about replacement costs . That calculus has a ripple effect . We’re seeing prices go up, hickey said . Businesses are china data trying to conserve stock, and the easiest way to do that is raise prices or just stop selling .
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It’s not what you paid for your inventory — it’s what it’ll cost you to replace it . That’s what’s driving the decision making now, he added, noting that some portion of marketplace users were buying inordinate amounts of metal to hedge against price hikes . The political goal of the tariffs is ultimately to revitalize u . S . Manufacturing and reducing dependency on foreign steel . But the real-world implications may remain far murkier, and there is no fast fix in sight, he said .
