Special Alert: Trump Signs an Order
to Authorize Tariffs on Steel and Aluminum
Focused on You. Dedicated to Your Success.
March 16, 2018

President Trump signed an order on Thursday, March 8 authorizing a 25% tariff on steel and 10% tariff on aluminum. As of this writing, the only two countries that are exempt are Canada and Mexico. Canada is the top supplier of both steel and aluminum to the U.S. Forty-one percent of our aluminum is imported from Canada and 16% of our steel.

According to an article in Construction Dive these tariffs will substantially increase the cost of construction and undermine the President’s proposed $1.5 trillion infrastructure bill . Furthermore, The Trade Partnership claims that 28,000 construction jobs could be at risk. 

Although the construction trades are not happy about these tariffs, the U.S. steel workers are. Stock prices in U.S. steel and manufacturing companies jumped up when the news was announced. Even so, companies that use steel and aluminum to manufacture products such as cars and airplanes experienced the opposite – lower stock prices.

Time will tell how countries around the world will react to these tariffs. It is possible that other countries could be added to the exempt list. 

As always, we are here to answer your questions. Feel free to contact any member of our team at 610.828.1900 or me at Marty.McCarthy@MCC-CPAs.com
Martin C. McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company, PC

Disclaimer This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).