US construction companies and automakers may be the most affected by tariffs. In 2017, the US construction industry accounted for about 40% of US metal consumption, while the automotive industry accounted for only 25%. However, US Secretary of Commerce Wilbur Ross said that the impact of tariffs is negligible, and pointed out that 1 ton of steel used to make ordinary vehicles will have a small impact on overall vehicle costs.1 inch square steel tubing
Sales or profit?
According to research conducted by consulting firm Ducker Worldwide, a typical American-made car weighs about 1.9 tons, or 3,835 pounds. This decomposes into 54% steel and 11% aluminum. However, producing parts can lead to waste, further increasing costs.
Overall, Ducker estimates that US automakers consume 2,925 pounds of steel and 526 pounds of aluminum to make ordinary cars. If these figures show up, automakers will need to raise prices to offset higher costs, which may have a negative impact on sales or accept lower margins. However, Joseph Amaturo, an analyst at Buckingham Research Group, said the Trump administration’s new tariff could increase by $300 per car, about one percent, quoted by Wine and Secretary Ross. The numbers are the same.
New tariffs may affect all products produced in the United States, including any steel or aluminum, or part of it. Many products contain metal alloys that contain a certain proportion of steel and/or aluminum. Due to the high cost of manufacturing the alloy first, tariffs can have a significant impact on all products from tractors to canned tuna.
JPMorgan analysts said the proposed tariff could reduce the sales of Caterpillar and John Deere tractors by 9%. Edward Jones analysts said the new import tax will also affect food prices. Aluminum prices may increase the cost of breweries by about 7%, especially for the largest market in the United States.steel square pipe
According to stock market analysts, tariffs are unlikely to have a significant impact on US companies. Keith Parker, an analyst at United Bank of Scotland, has offices throughout the United States, and he said the overall economy has an impact on the company’s total revenue. After the president announced, big companies failed to adjust their earnings forecasts, which confirms this. Scott Wren, equity strategist at Wells Fargo, said tariffs will be affected, but there will be no pessimism in the end of the world and some people’s predictions of bad luck.