New tariffs on steel and aluminum raise business concerns

U.S. business leaders are worried about the impact of President Trump's new 25 percent tariffs on steel and aluminum. The tariffs went into effect last week and have raised concerns among various industries that rely on these metals. Some companies may benefit from the tariffs, as they could boost domestic production. However, many businesses fear higher costs. This includes industries like construction, automotive, and energy, which could face increased expenses due to the tariffs. Analysts predict that these added costs may be passed on to consumers, leading to higher prices for everyday goods. The U.S. imports a significant amount of steel and aluminum, mostly from Canada. Officials have stated that this reliance could harm national security. They believe the tariffs will encourage more investment in domestic manufacturing. However, immediate effects were seen on the stock market, with the S&P 500 dropping due to worries about the tariffs and other trade measures. Companies like craft brewers are particularly affected. For instance, aluminum costs make up a large portion of their production expenses. Trade groups from different industries have expressed that these tariffs could hurt food production and lead to inflation in grocery stores. Business owners have reported uncertainty regarding the tariffs, noting abrupt changes in policy. One entrepreneur shared that a company they worked with shut down due to the tariff situation, leaving them in the dark about future orders. While some in the steel industry support the tariffs as a means to protect jobs, others highlight the need for a reliable supply of affordable metals. Experts warn that while these tariffs aim to boost domestic production, they may not meet demand in the short term. Consequently, many manufacturers may face profit squeezes, affecting investment choices. Looking forward, while there have been calls for exemptions, President Trump has stated he will not allow any. As businesses brace for ongoing changes, the long-term effects of these tariffs remain uncertain.