5 days ago
Manufacturing CEO sounds alarm on Trump's steel and aluminum tariffs
A major U.S. manufacturing CEO is sounding the alarm about President Trump's new steel and aluminum tariffs, warning they're actually hurting American companies while foreign competitors gain an unfair advantage. U.S Metal Powders, Inc. CEO Eric Degenfelder told the Daily Mail that the 50 percent tariffs on those elements have backfired spectacularly, driving aluminum prices from about $1.25 to $1.80 'in a matter of a few months' and leaving domestic manufacturers at a severe disadvantage.
Degenfelder said the tariffs are boosting foreign competitors because customers are 'buying cheap aluminum in another region and then making aluminum powder and importing it to the U.S.' The White House has imposed steel and aluminum tariffs at 50 percent for most nations. But for the U.K. they are only 25 percent per May's bilateral trade deal.
David N. Taylor, President and CEO of the Pennsylvania Manufacturers' Association, told the Daily Mail that he does see the tariffs as a necessary move by the administration to level the playing field in a global market. Taylor noted that historically, Chinese bids on global manufacturing contracts would come in at prices lower than what it costs just to buy the raw materials in the US - even before factoring in manufacturing and shipping costs.
He added that those numbers are 'not mathematically possible unless someone ( China ) is cheating.' With the increase in raw material costs, domestic policymakers have sought to give business leaders relief in other areas. Hence, the reason for Thursday's visit to U.S. Metal Powders facility in Palmerton, Pennsylvania by House GOP Conference Chairwoman Lisa McClain, who toured the aluminum powder factory alongside freshman Republican Rep. Ryan Mackenzie.
House Republicans were in town to sell the GOP's 'Big, Beautiful Bill,' a package of domestic policy changes, including provisions being pitched to make the lives of manufacturers better. During the facility tour, Degenfelder highlighted a key tax provision that allows businesses to immediately write off the full cost of new equipment purchases, which has enabled companies like his to rapidly expand.
McClain acknowledged the short-term pain of shifting to more domestic steel and aluminum facilities, but still thinks it's worth the long-term gain of additional domestic control over supply chains. 'If it was just easy to flip the switch, we would do... We can't flip that switch, but this is the first step in that transition process to begin to have more steel and aluminum right here in the USA,' McClain told the Daily Mail Thursday.
The U.S. Metal Powders facility in Palmerton has just built its fourth production line, which will be 'going online' later this month. Degenfelder also plans to hire 15 additional employees from the local community, which will bring his total employee count up to 65. The starting salary at his facility is $22.50 per hour for an entry-level position, which provides ample on-the-job training and only requires a GED.
