Trump’s New Steel Tariffs: Is Your Business Prepared?
For business owners still curious as to how Trump’s tariffs are affecting their businesses (despite Wilbur Ross’ enlightening soup can analogy), the financing advisors at National Business Capital broke down the highlights of the plan, and provide insight as to how each affected business can prepare for changes unique to each industry.
What Exactly are They?
President Trump’s new aluminum and steel tariffs place a 25% tariff on foreign steel, and a 10% tariff on foreign aluminum.
The foreign steel tariffs went into effect towards the end of the second week in March.
As of now, only Mexico and Canada stand as exceptions to Trump’s steel tariffs, essentially raising the price of all other foreign steel and aluminum imported by the US, including China, who controls 55% of the global steel market, and about 50% of the aluminum market.
Trump has expressed his interest in boosting the aluminum and steel industries in the US since his 2016 presidential campaign, and even tweeted recently:
The tariffs are intended as a follow up on the president’s vow to revive the US metal industry, which was once a world leader in the aluminum and steel markets back in 2000, according to the US Department of Energy.
The financial collapse of 2008 left the US domestic metal industry to suffer in the shadow of overseas manufacturing giants such as China, who has since taken control of the global steel and aluminum markets.
By raising the prices on offshore steel and aluminum, consumers will be encouraged to buy lower-priced American made products.
Trump designed these aluminum and steel tariffs after listening to advice and suggestions from executives in the steel and aluminum industries last week, all of whom endorsed the president’s plan.
Increased demand for American steel and aluminum provides new opportunities for the growth and expansion of US manufacturers.
Manufacturing plants are expected to multiply across the country as a result of this dramatic change, and provide thousands upon thousands of employment opportunities in steel and aluminum factories.
Of course, running a new or reopened smelting factories and manufacturing plants doesn’t come cheap. Capital for labor costs, equipment, and the building itself will be needed before taking advantage of this opportunity.
The phones at NBC have been ringing off the hook from manufacturers preparing to make the most out of this boom in business.
Financing advisors are helping them get the extra capital they need to get new machinery, offer competitive wages, and purchase or remortgage buildings of operation, with a faster and easier access to funding process than any other lender.
Automotive Businesses: Get Ready for Some Changes
Owners of automotive shops and dealerships are singing a different tune—especially those who work regularly with parts and vehicles made exclusively overseas.
With no choice but to purchase foreign made materials, as they are only available from overseas steel markets, auto businesses will need to adjust to raised prices of steel and aluminum by changing the way they finance their business.
NBC is currently helping auto shops across the US prepare in advance of Trump’s steel tariffs by financing the raised costs of materials as they adjust to new steel market prices—in as little as 24 hours.
Many auto dealers that sell vehicles made with foreign materials have also been securing flexible finance options from NBC, including business lines of credit, which serve as an excellent financial backup when adjusting to the raised prices of foreign steel.
Contact the financing advisors at NBC for guidance in finding best finance strategies to utilize in advance of Trump’s steel tariffs, and get your auto business ahead of the competition.
Construction Businesses: Build New Relationships
Those in the construction industry will need to build new relationships with US steel manufacturers in order to save countless time and money.
For many years, construction businesses have been buying their materials primarily from overseas manufacturers, where steel market prices have been generally much lower than those offered by American made material providers.
With the new tariffs in place, construction companies will have to form new relationships with American manufacturers in order to get the high quality materials they need at an affordable price.
However, building a trusted relationship with a quality provider can take time, and as every construction business owner knows, time is money. Having the capital to purchase materials as needed is essential to getting projects done on time, and keep operations running smoothly.
Many construction businesses are turning to NBC for help, which can cover the costs of these materials while seeking new material providers in 24 hours or less.
With financing options that offer flexible payments and both long and short term solutions, NBC is helping construction companies nationwide get the materials they need, when they need them, with fast processing speeds that simplify paperwork, and expedite access to funds.
How NBC Can Help Prepare for Trump’s Steel Tariffs
Get started on NBC’s 1-page, 1-minute application online to get started on your 24 hour process to funding, or call (877) 482-3008 to speak to one of NBC’s expert financing advisors, on call 24/7 to answer any questions you might have, and help your business find the perfect finance options to prepare for Trump’s aluminum and steel tariffs, help your business thrive in the rapidly changing global economy.