Latest news with #EconomicProsperityDeal
Yahoo
a day ago
- Business
- Yahoo
New steel, aluminum tariffs will push construction costs higher
This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. New tariffs on foreign steel and aluminum will raise construction costs further, adding to price spikes triggered by an initial 25% tariff on the materials earlier this year, according to a June 3 industry webinar hosted by Skanska USA. President Donald Trump increased steel and aluminum tariffs from 25% to 50% on Wednesday, doubling down on a strategy that has reshaped construction supply chains since his administration took over. Only the United Kingdom is exempt from the hike until July 9, per the U.S.-U.K. Economic Prosperity Deal. The move will inflate material costs across a range of commercial building materials, at a time when many projects stand on shaky financial ground, according to panelists. 'We're still digesting the most recent announcement of the steel and aluminum tariffs doubling,' said Rob Cantando, national director of strategic supply chain at Sweden-based developer and builder Skanska. 'We're going to be working with our supply chain partners to assess that impact over the coming weeks.' In one case study shared by Skanska, the new tariffs could add around $22 million to a $375 million healthcare development. Nearly half of that jump is tied to derivative components that embed steel or aluminum in their assemblies, according to Skanska. Panelists added these cost increases could even jump as high as 8%. But other categories are showing resistance to price swings, said Cantando. Several manufacturers that announced price hikes earlier in the year, particularly of drywall, lumber and steel studs, have since scaled back further increases. 'Many of those markets that shot up early when the first round of tariffs were announced are giving back some of those gains as these new tariff policy changes are accounted for. In addition, manufacturers and suppliers are taking action to remain competitive,' said Cantando. 'Many of them are shifting sourcing and materials to minimize the impact of tariffs. In some cases, tariffs are being partially absorbed by the supply chain.' The result is an unpredictable pricing climate. For now, structural steel escalation is hovering around 5% to 8%, but that could rise quickly, said Cantando. Coil-based steel products, including hollow structural sections and bar grating, have already surged by as much as 50% since January. Midwest aluminum premiums jumped 54% following Trump's announcement last week of the new tariffs, he added. To stay ahead of volatility, suppliers have been reworking logistics. Kawneer, a Norcross, Georgia-based manufacturer of commercial construction products, has begun rerouting cross-border contracts and adjusting production footprints across North America to avoid tariff exposure, said Sarah Andreasen, director of North American sales at Kawneer. Kawneer's architectural aluminum product range includes windows, doors, framing systems, curtain wall systems and railings. The firm's products are used on nonresidential buildings such as stadiums, offices, schools, retail and healthcare construction, according to the company. 'For us, it's been all about rediverting our supply chain,' said Andreasen. 'We have had to do a lot of work, set up production capability in different plants so that we can mitigate those types of transactions from tariffs.' On the steel side, firms such as SteelFab, a Charlotte, North Carolina-based structural steel fabricator, are working directly with owners and general contractors to create bundled purchasing agreements, said Chris Gregory, executive vice president at SteelFab. Gregory recommended locking in pricing across multiple upcoming projects by combining expected orders into a single package. 'Package projects together. Say 'It's not just 1,000 tons we're buying, we'd like 15,000 tons. What kind of deal can you structure for us to lock in price and help us with the schedule?'' said Gregory. 'That has saved a tremendous amount of money this first quarter that goes directly to the owners.' However, risks still remain, said panelists. In certain cases, tariff impacts won't appear on an invoice at all, said Cantando. For instance, if the cost of a component rises due to reshuffled sourcing or overseas market constraints, there's rarely a clean paper trail. 'A component costs $100 but because of tariffs, it now costs $150. My supply chain team quickly gets to work to try to find an alternate source. Let's say they find a source that's $125,' said Cantando. 'You can argue that the $25 increase was a result of tariffs. But you're not going to have a document that shows that because there's no tariff that's applied to it.' Tariffs' impacts are further complicated by shifting domestic capacity. While U.S. steel mills are currently running below peak capability, at around 75%, certain segments have already seen stretched lead times, said Gregory. Aluminum smelting capacity, idled in recent years, will also be harder to ramp back up, said Andreasen. 'I do think it's something that we're going to have to watch pretty carefully,' said Andreasen. 'I think that's a challenge that we'll continue to watch on the horizon.' In the meantime, executives should continue to develop contingency planning and contract strategies. Panelists during the session advised clients to revisit contracts to help mitigate risk. 'You might want to consider establishing unit pricing, or index-based pricing, for products where the supply chain is suggesting that firm fixed pricing won't reflect future tariff policies,' said Sarah Vakili, senior director of business planning and strategy at Skanska. 'Of course, stay informed and be willing to adapt.' Recommended Reading Construction costs dip, but tariffs hike some materials' prices
BBC News
a day ago
- Business
- BBC News
Germany's Merz to meet Trump with Ukraine war high on agenda
Update: Date: 15:58 BST Title: Merz's trip comes one day after 50% steel tariffs kick in Content: Tariffs are likely to be high on the German chancellor's agenda. Merz's trip to Washington DC comes just one day after a 50% tariff on steel and aluminium imports kicked in. The move hikes import taxes on the metals, which are used in everything from cars to canned food, for the second time since March. Trump says the measures are intended to secure the future of the American steel industry. Critics say the protections could wreak havoc on steel producers outside the US, spark retaliation from trade partners, and come at a punishing cost for American users of the metals. The UK has been temporarily spared from the tariff. Trump said in the order that the UK needed "different treatment" because of the US-UK Economic Prosperity Deal (EPD) signed on 8 May 2025. Trump later added that the US might increase the tariff on the UK "on or after 9July 2025" if it "determines that the United Kingdom has not complied with relevant aspects of the EPD". Update: Date: 15:51 BST Title: Merz says he is 'well prepared' for Trump talks Content: Bernd Debusmann JrReporting from the White House Merz is staying at Blair House, just across from the White House. Just a short while ago, Chancellor Merz held a short press briefing for traveling German journalists at Blair House, the location just across the street from the White House where he's staying. In his remarks, Merz said he was "looking forward" to the visit and is "well-prepared". "Nato will be a major topic," Merz told reporters. "As will trade and Ukraine." Merz also suggested he's ready for any potential ambush if Trump or his team bring up Germanys far-right AfD or freedom of speech issues in Germany. "When we talk about German domestic politics, I will use clear words," he said. Update: Date: 15:46 BST Title: The good, the bad and the ugly of President Trump's bilaterals Content: A meeting between two world leaders or representatives isn't always front page news. However, the way President Trump's bilateral meetings have gone in the past few months, the outcomes are harder to predict. Back in February, Indian Prime Minister Modi hailed a "mega partnership" with the US during a two-day visit, as he and Trump agreed on a deal for Delhi to import more American oil and gas. Later in the month, Trump told a joint news conference with UK Prime Minister Keir Starmer: "We like each other, frankly, and we like each other's country.' He seemed dazzled when Starmer presented him with a letter from King Charles in the Oval Office. The next day, Ukraine's President Volodymyr Zelensky faced an extraordinary dressing down in front of the world's media, after Trump and Vice-President JD Vance demanded that he show more gratitude for US support in its fight against Russia's invasion. And in May, Trump ambushed South African President Cyril Ramaphosa during a live news conference with widely discredited claims of a "white genocide" in South Africa. Update: Date: 15:45 BST Title: What's on the agenda for Trump and Merz? Content: Though there isn't an official list of topics that Trump and Merz plan to address at their first bilateral meeting, the German embassy in Washington has said that war and trade will be on the agenda. 'Key topics will include bilateral relations as well as international issues such as Russia's war of aggression against Ukraine, the situation in the Middle East, and trade policy,' the embassy said. Merz has been a hard-line supporter of Ukraine and its president Volodymyr Zelensky, someone with whom Trump has had his fair share of contention. Germany has also pushed back on Trump's tariffs, particularly those on steel and cars, which would heavily impact German manufacturers. As other world leaders have visited Washington for similar meetings over the last few months, that's been a major talking point. Update: Date: 15:40 BST Title: German chancellor to meet Trump in the Oval Office Content: Welcome to our live coverage of the bilateral meeting between US President Donald Trump and newly elected German Chancellor Friedrich Merz. Merz, a member of the Christian Democratic Party (CDU), was elected on 6 May, and this is the first official meeting between the two leaders. After initial greetings, Trump and Merz will head to the Oval Office where they will hold what's known as a "spray" - when reporters are invited to shout questions at the two. Stay with us as we bring you the latest.
Daily Mirror
2 days ago
- Business
- Daily Mirror
Keir Starmer promises Trump trade deal will be in force in 'very short time'
The PM insisted the government is "working on it" to bring steel tariffs down to zero - as he promised when the deal was announced last month Britain's trade deal with Donald Trump will be in force "within a very short time", Keir Starmer promised today - after the US President hiked global steel tariffs to 50%. The PM had promised UK producers would be spared the tariffs - originally set at 25% - under the deal agreed on May 8. But the Economic Prosperity Deal (EPD) has yet to be finalised. On Tuesday night, Trump announced UK steel imports would continue to be subject to 25% tariffs until an agreement was reached. But if the deal isn't implemented to his satisfaction by July 9, the US President warned the UK could be stung with the higher 50% rate. "We are working on it to bring it down to zero, that is going to happen," Mr Starmer said at Prime Minister's Questions yesterday - after challenges from both Tory leader Kemi Badenoch and Lib Dem leader Ed Davey. He told MPs: "We have a deal and we are implementing it and within a very short time I am confident we will get those tariffs down in accordance with the deal." Adding that he expected MPs would be "very pleased at the outcome of that", he said: "Let's come back in just a couple of weeks when we have implemented it." After Prime Minister's Questions, Downing Street said Mr Starmer's confidence in finalising the deal was due to "constant dialogue" with the US. But the Prime Minister's official spokesman would not guarantee that the deal would be in place by the July 9 deadline set by Trump, saying: "Obviously our aim is to implement this deal as quickly as possible and you have just heard from the PM in the House that we are hoping to provide an update on that in weeks." But the Lib Dems urged Sir Keir to stand up to Mr Trump, saying the president had changed the terms of a deal he had already signed. Get Donald Trump updates straight to your WhatsApp! As tension between the White House and Europe heats up, the Mirror has launched its very own US Politics WhatsApp community where you'll get all the latest news from across the pond. We'll send you the latest breaking updates and exclusives all directly to your phone. Users must download or already have WhatsApp on their phones to join in. All you have to do to join is click on this link, select 'Join Chat' and you're in! We may also send you stories from other titles across the Reach group. We will also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose Exit group. If you're curious, you can read our Privacy Notice. Following Prime Minister's Questions, Sir Ed called on the Government to support his party's "Buy British" campaign, saying: " Donald Trump has taken our lunch money and is now coming back for more. "Any deal he signs is already through the Oval Office shredder. "It is time for the Government to admit that Trump's White House is not a reliable ally and get tough on ending this trade war by backing British businesses." Meanwhile, both the steel industry and trade unions have urged the Government to finalise the agreement with Washington. Gareth Stace, head of the industry body UK Steel, said Mr Trump's decision to keep tariffs on British steel at 25% was a "welcome pause" but warned that continuing uncertainty was making US customers "dubious over whether they should even risk making UK orders". Alasdair McDiarmid, assistant general secretary of the Community union, also welcomed the "reprieve" from the 50% rate, and added it was "vital that the UK locks down the US trade deal to avoid punitive steel tariffs going forward."
Yahoo
2 days ago
- Business
- Yahoo
50% U.S. tariffs on foreign steel, aluminum imports take effect
June 4 (UPI) -- The United States' 50% tariffs on metals imported from nearly all nations took effect on Wednesday. President Donald Trump signed an executive order on Tuesday, doubling the tariffs on all aluminum and steel imported into the United States from 25% to 50% with only Britain receiving a reprieve as part of a trade deal between the two nations in May. "In my judgement, the increased tariffs will more effectively counter foreign countries that continue to offload low-priced excess steel and aluminum in the United States Market and thereby undercut the competitiveness of the United States steel and aluminum industries," Trump said in the order. Roughly 25% of all steel used in the United States is imported from abroad, with neighbors Mexico and Canada serving as the largest exporters of steel into the country. Mexican Economy Minister Marcelo Ebrard said Mexico would seek an exemption from the tariff increase while criticizing the move by the United States. "It makes no sense for the United States to levy a tariff on a product in which you have a surplus," he said. Canadian Prime Minister Mark Carney's office also said Canada was "engaged in intensive and live negotiations to have these and other tariffs removed. European Union Trade Commissioner Maros Sefcovic met with U.S. Trade Representative Jamieson Greer on Wednesday in an effort to work out an exemption on the 50% duty. Sefcovic posted to X Wednesday that the two had "a productive and constructive discussion." "We're advancing in the right direction at pace -- and staying in clsoe contact to maintain the momentum," he said. Britain was spared from the tariffs after signing the U.S.-U.K. Economic Prosperity Deal on May 8 that granted the United States the ability to fast-track exports including agricultural products, through British customs and market access for industrial products. Tuesday's executive order stipulated, however, that Britain could be subject to the 50% tariffs as soon as July 9 if it is determined that it has not "complied with relevant aspects of the deal." Gareth Stace, director general of U.K. Steel, said Tuesday that while the trade association for the British steel industry welcomes the 25% tariff break, "uncertainty remains over timings and final tariff rates, and now [United States] customers will be dubious over whether they should even risk making U.K. orders." "The [United States] and U.K. must urgently turn the May deal into reality to remove the tariffs completely," he said.
UPI
2 days ago
- Business
- UPI
50% U.S. tariffs on foreign steel, aluminum imports take effect
The United States on Wednesday put into effect 50% tariffs on steel and aluminum imported into the United States from all nations except Britain. File Photo by A.J. Sisco/UPI | License Photo June 4 (UPI) -- The United States' 50% tariffs on metals imported from nearly all nations took effect on Wednesday. President Donald Trump signed an executive order on Tuesday, doubling the tariffs on all aluminum and steel imported into the United States from 25% to 50% with only Britain receiving a reprieve as part of a trade deal between the two nations in May. "In my judgement, the increased tariffs will more effectively counter foreign countries that continue to offload low-priced excess steel and aluminum in the United States Market and thereby undercut the competitiveness of the United States steel and aluminum industries," Trump said in the order. Roughly 25% of all steel used in the United States is imported from abroad, with neighbors Mexico and Canada serving as the largest exporters of steel into the country. Mexican Economy Minister Marcelo Ebrard said Mexico would seek an exemption from the tariff increase while criticizing the move by the United States. "It makes no sense for the United States to levy a tariff on a product in which you have a surplus," he said. Canadian Prime Minister Mark Carney's office also said Canada was "engaged in intensive and live negotiations to have these and other tariffs removed. European Union Trade Commissioner Maros Sefcovic met with U.S. Trade Representative Jamieson Greer on Wednesday in an effort to work out an exemption on the 50% duty. Sefcovic posted to X Wednesday that the two had "a productive and constructive discussion." "We're advancing in the right direction at pace -- and staying in clsoe contact to maintain the momentum," he said. Britain was spared from the tariffs after signing the U.S.-U.K. Economic Prosperity Deal on May 8 that granted the United States the ability to fast-track exports including agricultural products, through British customs and market access for industrial products. Tuesday's executive order stipulated, however, that Britain could be subject to the 50% tariffs as soon as July 9 if it is determined that it has not "complied with relevant aspects of the deal." Gareth Stace, director general of U.K. Steel, said Tuesday that while the trade association for the British steel industry welcomes the 25% tariff break, "uncertainty remains over timings and final tariff rates, and now [United States] customers will be dubious over whether they should even risk making U.K. orders." "The [United States] and U.K. must urgently turn the May deal into reality to remove the tariffs completely," he said.
