Steel Products Manufacturers NAICS 3312

Apr 21, 2025 - Tariffs Boosting Business

• While many businesses are struggling to respond to President Trump’s tariff turmoil, higher trade barriers are creating opportunities for some small US manufacturers, The Wall Street Journal reports. Ellwood Group, a maker of forged steel, nickel and aluminum products, is one company that's getting a boost from the tariffs, according to WSJ. The Pennsylvania-based business saw its sales jump 35% from the fourth quarter to the first, driven in part by 25% tariffs on steel and aluminum that only came into effect in mid-March. One reason: Large construction projects that use finished steel are diversifying away from Asian suppliers to US companies that buy its raw materials. “Customers want to get ahead of the tariffs,” said Ellwood’s Chairman David Barensfeld, adding “They are diversifying, reshoring because they want to de-risk foreign supply chains.” The company is adding staff amid increasing new orders.
• President Trump’s aggressive trade policy is undermining his efforts to get US energy producers to drill for more oil and gas by raising drilling costs and driving down the price of oil, NBC News reports. In March, the administration raised the tariff on steel imports to the US 25%, driving up the cost of raw steel used to make the steel pipe used by energy companies. Tariffs are reducing the supply of foreign steel in the US market leading to higher costs for manufacturers. Moreover, US steel makers began hiking prices in February in anticipation of the tariffs. Producer prices for iron and steel pipe and tube manufacturing from purchased steel, which had been falling, rose 5.6% in March versus February, according to the Labor Department. In April, US oil prices sank to their lowest level since 2021 on concerns that the tariffs will hurt economic growth.

• To avoid stiff tariffs on imported steel and take advantage of the reliability and timeliness that shorter supply chains can offer, more companies are considering sourcing from US-based mills, according to metals service center Mead Metals. Manufacturers of steel products that reshore their supply chains can benefit from relationships with local mills and service centers that offer just-in-time shipping and proximity advantages that reduce inventory, logistics costs, and lead times. But with demand for local suppliers rising, purchasing managers could see tight availability for certain metals, underscoring the need for proactive sourcing and flexible inventory strategies, according to Mead Metals. As for tariffs, a 2019 Federal Reserve study found that while tariffs imposed by the first Trump administration increased US steel production, higher input costs from tariffs reduced manufacturing jobs, relative to what it would have been without tariffs, and raised production costs for metal-based goods.
• The Steel Manufacturers Association supports tariffs on imports from Mexico and China, as proposed by the incoming Trump administration, but would like to see Trump go further and reimpose tariffs on steel from the UK, the EU, and Japan, The Wall Street Journal reports. Those countries faced duties under the first Trump administration, but President Biden allowed some steel to enter the US without duties. Trump has said he would impose 25% duties on all imports from Canada and Mexico unless they stepped up efforts to curb the flow of narcotics and migrants to the US and has also called for higher tariffs on imports from China. Additional tariffs on imports would give US steel makers more leverage to increase prices by effectively raising prices for foreign products, according to WSJ. Critics note tariffs would raise prices for their customers, including makers of steel products, and US consumers.