Recent tariffs on steel, aluminum imports keep local businesses, experts in wait
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ScrapPrices
Published on March 26,2018 09:55 AM Scrap Metals
The Oneida/Herkimer Solid Waste Authority presses scrap aluminum and scrap metal into flaky blocks that reach to the metal ceiling of its facility.
Recent tariffs on steel, aluminum imports keep local businesses, experts in wait

UTICA — The Oneida/Herkimer Solid Waste Authority presses scrap aluminum and scrap metal into flaky blocks that reach to the metal ceiling of its facility.

It also sells these large piles of material, the value of which is determined, in part, by the global trade market. However, it remains uncertain how the Trump Administration’s recent decision to implement tariffs on imported steel and aluminum will change these resources’ value.

“We’re not sure how it’s going to affect us at this point,” said William Rabbia, Executive Director at Oneida-Herkimer Solid Waste Authority. “It could help with some commodities and drive up the value, but it could hurt with others.”

Rabbia’s sentiment echoes the majority of local businesses affected by tariffs of 25 percent on imported steel and 10 percent on imported aluminum. Though the tariffs exclude exports from some countries — like Canada and Mexico — most economists and industry experts are wary of how the decision will affect global trade.

So is state Assemblyman Anthony Brindisi, D-Utica. He said supporting the American work force was important, but if countries imposed tariffs on U.S. exports in response, he worries other local industries might also be adversely affected.

“My worry is that it could trigger retaliation from other nations as they look to put tariffs in place on American goods, and the area we have to keep an eye on is agricultural products,” he said. “Farmers could be negatively impacted by any new tariffs by foreign countries on their products.”

A spokeswoman for Congresswoman Claudia Tenney said Tenney was unavailable for comment.

But for those involved in the production and sale of steel, the tariffs are long overdue.

Richard Evans, executive vice president of Pacemaker Steel and Piping Company, said the tariffs help steel producer employees and companies alike.

“When steel prices are significantly depressed because of imports, it hurts anybody in the business,” Evans said. “If these tariffs stay in place, you’ll see an expansion with many of the U.S. steel manufacturers to enhance equipment and build new mills in the U.S.”

He also said it was likely the decision will negatively impact “any small to medium manufacturer” in the short term. The issue is pricing, Evans added, and even if those companies are paying more for their materials, it remains difficult to change the price of their products.

The construction industry is one of those industries. David Klep, president of C2C Construction Solutions in Utica, said his company — which erects Butler pre-engineered steel buildings — already has seen increases in steel prices before Friday.

And prices could rise even higher.

“We have to tell owners we just had an 8 percent price increase,” Klep said, “and now we’re looking at as much as (a 20 to 25 percent increase). It is very scary.”

It is unlikely, Klep said, that the decision will negatively impact revitalization efforts around Utica. But he added that it may impact the amount of steel available for buildings, potentially slowing down new building constructions.

These effects remain to be seen, but Klep remains optimistic.

“I think we’ve got a solid economy, there’s a lot of opportunity out there, and I won’t say it won’t have an effect,” Klep said. “But I’m still positive ... we’re in a good construction economy. I’m cautiously optimistic that we’ll get through this.”

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