US factory struggles with Trump steel tariffs impact
BELCAMP: The sweltering summer heat at Independent Can's Maryland factory contrasts sharply with the snowman-decorated metal containers taking shape on the production line. But the real tension stems from President Donald Trump's steep steel tariffs, now doubled to 50%, which CEO Rick Huether says are wreaking havoc on his business.
Huether, 73, who began working at his family's company at age 14, is determined to keep the nearly century-old firm afloat. However, Trump's tariffs on imported steel and aluminum have complicated operations, forcing Huether to consider price hikes of over 20%.
'We're living in chaos right now,' Huether told AFP. The factory, which employs nearly 400 workers across four sites, relies heavily on imported tinplate—a steel variant coated with tin to prevent rust. Yet, US production meets only 25% of the demand, leaving manufacturers like Independent Can dependent on foreign suppliers.
While Huether supports strengthening US manufacturing, he criticizes Trump's unpredictable tariff policies. 'Those all require us to buy in the neighborhood of 70 percent of our steel outside of the United States,' he said. The tariffs have already led to a 20-25% drop in orders as customers brace for economic uncertainty.
The company's Iowa plant shut down last year partly due to earlier tariff hikes. Now, with costs soaring, Huether fears history may repeat itself. Some buyers are shifting to American-made products, but Huether remains skeptical. 'During the pandemic, we took everybody in... our business went up 50 percent,' he said. Yet, post-pandemic, clients returned to cheaper Chinese alternatives.
Huether insists on long-term contracts to mitigate risks. 'We need to have a two-year contract,' he said. Despite the challenges, he remains hopeful. 'I think that our business will survive,' he added, though navigating the next six months remains uncertain.
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