Pit & Quarry, May 2018

UPtoSPEED UPtoSPEE GOVERNMENT Confusion surrounds THE TRUMP TARIFFS resident Donald Trump began to impose tariffs on imported steel and aluminum in recent months in an effort to protect domestic trade The tariffs of course have been a point of contention on both sides of the political aisle putting a 25 percent tax on steel imports and a 10 percent tax on imported aluminum Certain allies were temporarily exempted from the tariffs including Canada and Mexico But a deadline of May 1 that coincides with the deadline to finalize a new NAFTA deal means imported steel coming from key sources could soon be taxed China is likely to be one of the countries most affected by the U S imposed tariffs Additionally China is now subject to tariffs on about 60 billion of its goods coming into the United States Regardless a number of U S industries including manufacturing will undoubtedly be affected if the steel and aluminum tariffs become a mainstay The mere threat of tariffs or quotas has already contributed to higher steel prices disrupted business operations for equipment manufacturers and caused uncertainty in the business climate says Dennis Slater president of the Association of Equipment Manufacturers AEM POTENTIAL EFFECTS ON AGGREGATE PRODUCERS The aggregate industry which is dependent on steel resources and imports would also feel the effects of the steel tariff The final impact of the 25 percent tax however is still to be determined Were concerned because what we do is steel says Mark Krause general manager of McLanahan Corp which makes aggregate processing equipment Because were a global company how does that affect our global business We dont understand all of that yet either Were cautiously optimistic that cooler heads will prevail at the end of the day and that its more of a negotiation tactic than anything Well see and react but it will definitely affect this industry An increase in the price of steel would likely lead to product price increases as costs would be passed down to customers and potentially generate some uncertainty in an aggregate industry thats built positive momentum of late I dont think its a good idea says John Bennington washing product manager at Superior Industries of the tariffs That obviously is going to impact the customer The price of steel is going to go up and theyre going to have to pay more for the equipment The double whammy is theres a fairly large amount of steel used in road construction so any amount of money were spending on roads part of it is going to get eaten up just in paying the tariff for steel that was already there Bennington adds Equipment manufacturers arent the only ones scratching their heads over these tariffs A variety of trade associations are pushing back against the tariffs as well Were always concerned whenever tariffs are used as a penalty against imports says John Gould vice president of supply and chain customs policy at the National Retail Federation Tariffs are passed along and are essentially taxes paid by the U S consumer 8 PIT QUARRY May 2018 pitandquarry com PHOTO BY KEVIN YANIK These Trump Tariffs will put U S equipment manufacturers at a competitive disadvantage risk undoing the strides our economy has made due to tax reform and ultimately pose a threat to American workers jobs AEMs Dennis Slater says A tax on imported steel has representatives from equipment manufacturers and trade associations scratching their heads BY ZACH MENTZ P