As opposition to the 'tariff drive' of the Trump administration is growing within the United States, voices welcoming it are emerging from some industries. This is due to the expectation that if the prices of imported goods rise due to tariffs, they can regain market leadership lost to imports.
On the 10th (local time), The New York Times (NYT) reported that "many corporations are opposing President Trump's tariffs, worrying that tariffs will lead to increased costs and retaliation from other countries against domestic products," while noting that "despite this, voices of support are emerging among executives who claim that domestic industries have suffered from unfair trade."
The steel and aluminum industries are typical examples. Earlier, President Donald Trump announced that a tariff of 25% on steel and aluminum would be imposed starting at 12 a.m. (Eastern Time) on the 12th. During his first term in 2018, Trump also imposed a 25% tariff on steel and aluminum but allowed exceptions for some countries; however, this time he plans to impose tariffs on all imported products without exceptions.
According to NYT, steel and aluminum corporations have expressed dissatisfaction, claiming that foreign companies have been in a more advantageous position through government subsidies and other support relative to domestic companies. According to the American Iron and Steel Institute, imports account for 23% of the U.S. steel finished goods market. The proportion of aluminum imports is even higher, reaching 90% as of 2016.
Steven Capone, president of Iron Corporation, which manufactures steel stairs and railings in Lowell, Massachusetts, complained that Canadian competitors have long driven down prices, making it difficult for them to win business in the New England market. Capone stated, "No matter how low we bid, importers could offer a lower price," adding, "They are ruining our market."
U.S. corporations are expecting that the new tariffs from the Trump administration will raise the prices of imported goods, ultimately leading to an increase in the market share of domestic companies. Jerry Gery, CEO of Century Aluminum, an American aluminum producer, noted that the exception clause in the aluminum tariffs during Trump's first term diluted their effectiveness, saying, "The new tariffs will close that loophole and allow us to invest again."
However, there are also concerns about the negative effects of tariffs. Specifically, that U.S. corporations, having raised their market share, may maintain high product prices. Timna Tanners, managing director of The Metals Company, stated, "Steel mills seem unwilling to increase production due to fears of falling prices," adding, "They would rather maintain high prices."
Moreover, several U.S. steel and aluminum corporations have factories in Canada and thus cannot avoid receiving a direct blow from the Trump administration's tariffs. Charles Johnson, president of the Aluminum Association, while supporting the Trump administration's tariffs, remarked, "The United States needs a reliable source of metal," meaning that industries supplying metal from Canada assist in maintaining U.S. jobs.
NYT reported that "if tariffs raise the prices of steel and aluminum, companies using metal may pass on additional costs to consumers or seek alternatives," adding that "the industry unions also support Trump's tariffs, but sometimes oppose the way he imposes them."