In an effort to revitalize the American steel industry, new tariffs on steel imported from other countries have been implemented. Not surprisingly, this move has been controversial, and there are some repercussions that could result from imposing these tariffs. Below, the commercial and home construction professionals at Walton Contracting in Superior, NE, discuss three possible consequences of the recently imposed steel tariffs.

3 Potential Consequences of Steel Tariffs

1. Rising Prices

When a government puts tariffs on specific products, someone has to cover the added cost. Manufacturers who utilize imported steel in their products will have to pay more for the same steel imports, and there are two options as to who will shoulder the burden. The manufacturer could take the hit themselves, or they can pass the cost onto the customer by increasing their prices.

2. More Jobs

It's not certain if the American steel industry has the resources and capacity to meet a rising demand for domestic steel. One way the industry could keep up with that need is to employ more steelworkers. In a best-case scenario, the tariffs would lead to a surge of about 43,000 new jobs in the American steel industry, though this increase would take years to achieve.

3. A Trade War

If another country does not agree with the tariffs imposed by the American government, they can choose to levy tariffs of their own on certain American-made products. This is known as a trade war, which can have a negative effect on the economy. Several countries have stated their intention to respond to Trump's steel tariffs with tariffs of their own. This tit-for-tat response could also potentially cause a worldwide trade war that will impact not just America's economy, but the entire world's.

The commercial and home construction professionals at Walton Contracting are committed to offering you the highest quality steel buildings and new constructions at affordable prices. Wherever you're at with your project planning, trust this experienced company to help make your design goals a reality. Call (402) 984-2466, visit them online, or message them on Facebook to arrange an estimate for your next commercial or home construction job.