Texas businesses worried about potential impact of steel tariffs

AUSTIN – KVUE reports After President Donald Trump reinstated a 25% tariff on steel imports and increased tariffs on aluminum imports, residents and commercial builders are worried about the impact. President Trump said the move will strengthen the steel and aluminum industries in the U.S. While the tariffs have not gone into effect, the president of Transformations Custom Build, Lakshmi Jackman, said she’s starting to see the impact. “There’s a lot of steel studs, metal is in conduit. My electrician is concerned about that,” Jackman said. “He’s ordering conduit ahead of time, so yeah, that can have a real impact.” Jackman’s company builds new homes and does remodels. She said she knows people are raising their prices in anticipation of the tariffs.

Meanwhile, Matt Williams, the owner of Republic Building Company, which offers commercial and residential contracting services, said he’s already seen steel prices rise nearly 10% in anticipation of the tariffs. “We’re dealing with an inflation problem. We’re dealing with a cost of living problem in Austin. And now, you know, these tariffs could potentially make things more expensive, make developments more expensive, housing,” Williams said. “As a contractor, our margins are so tight on construction as it is, we can’t afford just to absorb these costs … The cost gets passed down to the client.” In the Longview News-Journal, East Texas businesses could face price hikes as tariffs on some imports loom, but understanding their purpose can help explain the bigger picture, experts say “As a strategy it will be good, because you add some pressure, you know that you lose, but you know that they lose more,” said Manuel Reyes, University of Texas at Tyler Hibbs Institute for Business and Economic Research director. “In terms of economics, strictly speaking, it is bad for all.” Bryan companies like Blackwater Brewing Co., which are dependent on aluminum production, may face the new 25% tariffs. The president established the tariffs to suppress the amount of imported metal from China to global markets because he argued it’s putting United States producers out of business. On KBTX, Bryan companies like Blackwater Brewing Co., which are dependent on aluminum production, may face the new 25% tariffs.