ROMULUS, Mich. (WXYZ) — Tariffs on imports are set to go into effect this week. While on one hand, economists say it'll hurt a lot of Americans’ bottom line, some American steel suppliers say it’s good for business.
“Oh, two thumbs up. Two thumbs up,” said Brian Nelson, co-owner of Spartan Sheet and Coil in Romulus.
To say Nelson supports the looming tariffs would be an understatement.
The second-generation steel man who focuses on materials for HVAC and roofing companies says domestic mills, suppliers, and processors are seeing a spike in business upwards of 15 percent, thanks to the proposed tariffs. Steel and aluminum orders often have long lead times.
“It’s had a serious impact on domestic suppliers being able to compete a little better; domestic mills are competing better,” said Nelson. “The people that have been buying international or importing steel have had some of their better cards taken away, I would say, because the playing field has been leveled.”
Extended interview: Steelman Brian Nelson talks positive impacts as tariffs set to take effect
The 25 percent tariffs on Canada and Mexico that were delayed for a month are set to go into effect Tuesday, along with an additional 10 percent tariff on imports from China. Next week, the Trump White House will impose an added 25 percent tariff on steel and aluminum imports.
“So, if you buy or bring in steel or aluminum from Canada or Mexico, it’s going to be hit with 50 percent,” Nelson said,
“Are there examples of some specific industries that might benefit in the long run from this protectionism? That is possible, and one example of that could be, if possible, the steel industry. But overall trade is a positive thing,” said Michael Greiner, an associate professor of business and trade expert from Oakland University.
“We import an extraordinary amount of our goods, both from China as well as from Canada and Mexico. So, as a result of that, it goes directly against the bottom line of American consumers who are going to be paying more for these goods,” Greiner said.
Extended interview: Oakland University Economics Professor Michael Greiner weighs in on potential impact of tariffs
Maisha Cook, manager of One Hour Heating and Cooling, says the tariffs will impact the cost of materials for air conditioners, condensers, and furnaces. That, coupled with inflation and increased costs for EPA regulations, means she will have no choice but to raise prices for customers.
“I would say 10 to 15% isn’t out of the norm. Unfortunately, we predict it will negatively affect our bottom line,” Cook said. “We have consumer financing, and that’s the upside: we have the ability to prevent a situation where a family is not going to be warm and healthy or cool and healthy.
Meanwhile, back in Romulus, Nelson believes Americans will be better off with policies that support American industry and manufacturing.
“I’m wearing Michigan-made, USA-made shoes. I only sell USA-made steel. I pride myself on that because I believe it takes a whole community. If we’re all buying the cheapest thing because we can save a buck, that’s sending the dollars out of here,” Nelson said.
Glenn Stevens Jr., Executive director of Mich Auto, released a statement saying:
Not only will the enactment of 25% tariffs on Canada and Mexico threaten Michigan’s business climate and its signature automotive and mobility industry, but it also represents bad-faith trade policy. Unilaterally imposing tariffs before United States-Mexico-Canada Agreement (USMCA) renegotiations even begin will undermine diplomatic processes and risk damaging Michigan’s relationships with its closest trading partners.
As MichAuto has continued to advise, the tariffs’ harmful effects will extend beyond trade relationships and will cause businesses to purchase and produce fewer products, hire fewer employees, and increase prices to the detriment of consumers. Michigan’s economic viability and business attractiveness will be reduced to collateral damage.
MichAuto urges the administration and policymakers to prioritize constructive engagement over punitive measures that ultimately hurt state and nationwide businesses and consumers.
