If you are in the market for a new steel building, you might have some concern about the recent steel tariff news. Steel prices spiked and then settled upon the announcement of US tariffs on steel and aluminum. These steel tariffs aim to protect the US steel industry. Taxes on foreign imports may ultimately invigorate our domestic steel industry. In the meantime, however, it has created an environment of some uncertainty.
Given that we are a steel building leader in the Rocky Mountain region, we are here to elaborate on what we do know.
Tariffs on Raw Steel
Much of America’s steel gets recycled overseas. Then it is brought back to the United States, where it is prepared to be used in construction.
The tariff placed on imports of raw steel on March 23 made some nervous. However, this only applies to raw steel coming in from certain countries, primarily China. This specific tariff does not apply to raw steel from Mexico or Canada. It looks like tariffs for imports from European countries will be reduced or eliminated as well.
Small Part of a Bigger Project
Moreover, only a portion of your building’s overall price for materials and construction is raw steel. Only a portion of that might be steel that is imported from a country with the applicable tariff. Then it is combined with other steel and processed in the US into a pre-fabricated steel building.
Prices Typically Go Up Year Over Year
What you want to keep in mind when planning your steel building, is that steel typically goes up in cost year over year. This is why it is always better to build earlier rather than later when you have the option. However, this new tariff had some companies immediately raise prices. They acted in anticipation of how this news might impact the overall pricing of steel. We’ve now seen those prices settle down.
In the near term, we can speculate that these tariffs may deter US manufacturers from importing the recycled steel from overseas. This will result in a more limited supply and that itself may cause costs to increase. If they continue to import at the same rate as before then any price the increase could be a direct result of the tariff. Either way, it’s likely, the consumer might be paying more a bit more.
Since these tariffs are so new, these price increases have yet to affect the industry as a whole just yet. Therefore, you still have time to shop around and get the best price. We are fortunate that we know we can still offer some of the most competitive pricing. You can also count on us for quality products and a commitment to customer service.
Actively Compare Pricing
You don’t have to take our word for it. Ask us for a quote and feel free to compare prices. Whatever you do, don’t fall into the common sales traps that force you to make a fast decision without knowing all of your options. We can help you understand how to compare bids. We want to make sure one bid over another offers you the same value.
This situation will continue to evolve. Our conclusion is that you don’t need to be too concerned, but nobody really knows.