North Texas fabricator already feeling the effects of aluminum and steel tariffs
NTX fabricator feeling effects of new tariffs
The announcement of a 50% tax on Canadian aluminum and steel imports starting on Wednesday caused another big sell-off on Wall Street. And some local businesses say they are already feeling the impact.
DALLAS - President Donald Trump is doubling down on tariffs on Canadian aluminum and steel, announcing an additional 25% tariff on those metals imported from our neighbor to the north.
"I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD," Trump posted on Truth Social.
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Trump doubles planned Canada tariffs to 50%, markets slump amid recession fears
President Donald Trump announced he will double tariffs on Canadian steel and aluminum to 50%, citing Ontario’s electricity price hikes as a reason.
The 50% tariffs, which are set to take effect on Wednesday, caused another big sell-off on Wall Street.
And some local businesses say they are already feeling the impact.
Trump 50% Tariff
Local perspective:
Lance Thrailkill is the CEO of All Metals Fabricating in North Texas.
The company fabricates parts used by hundreds of companies across the country – from household product parts to parts for tech corporations like Ericsson and AT&T, and even parts for wind turbines that produce energy.
Thrailkill buys his metals from American distributors who source metals from all over the world. But a lot of it comes from Canada.
He said the president’s social media posts on Super Bowl Sunday about the looming tariffs on aluminum and steel immediately caused price hikes.
"It’s not good. It’s not good at all. You know, it all rolls downhill. So, you know, the United States only has four aluminum mills. And so we don’t have the capacity to even keep up with the Texas manufacturers' demands. And so, the majority of the rest of the aluminum comes from China. And so, you know, that’s the same situation over there," he said. "We pass on everything that we can, but the manufacturers end up getting squeezed because we’re the ones at the end of the food chain selling to another business or the consumer. And so, a lot of times we take lesser margins as a result of it."
Thrailkill said by the time the product gets to him, it has increased in price higher than the stated tariff because the supplier raises prices to cover the tariff plus profit margin, and the distributor does the same.
The other side:
Despite what may be happening now, Thrailkill is still hopeful.
He said he had some of his best years in recent history during President Trump’s first term.
Yes, the tariffs were painful then, and yes, they’ll be even more painful now. But he’s hoping that economic history will repeat itself.
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Trump could reconsider tariff on Canada
What we know:
On Tuesday afternoon, President Trump suggested he might revisit the 50% aluminum and steel tariff threat against Canada after Ontario agreed to drop a surcharge on electricity exports to the U.S.
But the president also insisted he’s sticking with his overall tariff strategy for the long term.
"I have to tell you, I’m very optimistic about the country, much more optimistic about it this way than if I did it the easy way. I could have done it the easy way. I could have coasted," he said.
The president made his remarks after announcing he was buying a Tesla from Elon Musk in a show of support for Musk’s campaign to cut government spending.
The Source: FOX 4 reporter Shaun Rabb talked to the CEO of a North Texas fabrication company to gather details for this story. The story also uses comments President Donald Trump made on Tuesday.