On March 1, US President Donald Trump announced new tariffs on imports of steel and aluminium in a bid to “build our [America’s] steel industry back”. However, the protection of US’ steel and aluminium producers could be at the detriment of the country’s other manufacturers.
Already, global crane manufacturer Terex Corporation is preparing for the changes – a 25% and 10% tax on imported steel and aluminium respectively – with the company writing to its customers on March 6.
Terex Corporation president and CEO John Harrison noted that steel prices have been rising steadily for several months but the Trump administration’s proposed tariffs have further driven these prices, “reaching heights not seen in many years.
“The longer-term impact of the trade action is uncertain, but the inflationary impact on steel prices and related components is already increasing our product cost,” Garrison said.
While the company is “committed to protecting our customers from the adverse impacts of rising costs”, Garrison said the impact of the rising cost of steel “is too large and too sudden for us to absorb”.
“Given the uncertain nature of these market dynamics, we are not increasing our base prices,” Garrison said.
“Instead, we will be adding a steel cost surcharge on our equipment. The surcharge will cover a portion of our cost increases – and will remain separate and transparent from our base prices. As the price of steel normalises, we will adjust or remove the surcharge. Our aim is to minimise the impact on your business. We are still finalising the details of the surcharge – your Terex representative will communicate with you very soon.”