Metals industry’s reaction to tariffs mixed
Producers of steel and aluminum in Greater Williamsport offered different perspectives on the new 25% tariffs and their impact on manufacturing and costs.
Radiant Steel Products along with Chance Aluminum, two key manufacturing companies in Williamsport, could see benefits from the tariffs imposed on by President Donald J. Trump and the administration. High Steel Structures does not use imported steel, and the tariffs won’t impact the company.
“We work primarily with domestic steel,” said Krista Merkel, corporate marketing manager for High Company LLC.
The tariffs signed by Trump are for foreign countries’ imports of steel and aluminum.
Foreign nations have been flooding the U.S. market with cheap steel and aluminum, often subsidized by their governments.
Previously, the countries of Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the European Union, Ukraine and the United Kingdom have received past exemptions, which prevented tariffs from being effective.
These loopholes were exploited by China and others with excess steel and aluminum capacity, undermining the purposes of the exemptions, according to Trump’s Office of Communications.
The new expanded tariffs cover certain derivative products including for steel, nails and car body and bumper stampings, and for aluminum wires and parts.
City-based steel, aluminum impacts
With 97 years in the steel industry, Radiant Steel Products has witnessed how tariffs and trade policies shape manufacturing, said Rick and Kathy Fenstamaker, owners of Radiant Steel Products, 205 Locust St.
The latest round of international steel tariffs is intended to bolster domestic production, but their true impact will depend on how they are enforced and how both foreign and domestic markets respond, the owners said.
The Fenstamakers acknowledged the nation and world at large saw a similar situation during the tariffs imposed in Trump’s first term, when domestic steel mills capitalized on the reduced competition by raising their prices — often just under what Russian and Chinese suppliers had previously charged.
“Rather than creating a fairer market, this put manufacturers like Radiant Steel Products in a difficult position, facing higher costs with no real alternative. If history repeats itself, these new tariffs could once again burden manufacturers without delivering the intended benefits,” they said.
In the short term, businesses that rely on imported steel, including those in construction, automotive, and infrastructure, will likely see increased material costs. Radiant Steel Products understands how challenging this can be, especially for small and mid-sized manufacturers that lack the buying power to absorb these price hikes, the couple stated.
“However, if tariffs genuinely encourage reinvestment in U.S. steel production — leading to more competition, job growth and supply chain stability — companies like ours could benefit in the long run,” they noted.
The key will be ensuring that domestic mills don’t take advantage of the situation again, and that policies are structured to truly strengthen American manufacturing rather than simply shifting the financial strain, the owners said.
This city-based company will be ready for whatever transpires.
“For nearly a century, Radiant Steel Products has navigated market shifts by prioritizing quality, efficiency and adaptability. As these new policies unfold, we remain committed to advocating for fair and sustainable steel pricing that allows American manufacturers to compete and thrive,” the Fenstamakers said.
Dr. Jack Cheng, owner of Chance Aluminum, 2475 Trenton Ave. in the Industrial Park, said he sees promise with the new “232 tariffs on aluminum and steel,” the official name of this round of tariffs.
“I think these tariffs are necessary to protect and expand domestic manufacturing, and grow jobs. Chance Aluminum will certainly benefit from these tariffs,” he said of the aluminum tariff increasing from 10% to 25%.
To Cheng, the major change is that “all the exemptions, quotas, and exclusions are canceled.”
“That is a good thing,” he told the Sun-Gazette.
“So 25% will apply to all countries,” he said, adding, “this is the correct way to fix the loophole and ensure the tariffs will be effective as planned and the mission of tariffs accomplished.”
Without the lifting of the loopholes, the proposal to strengthen the American economy would not be as effective.
“Otherwise, the countries with quotas or exemptions will simply sell their capacity to US, and import their needs from countries subject to tariffs,” Cheng said.
“In addition, the exclusion process is really cumbersome and importers with exclusions can still import a lot of products without the tariffs. Both of these greatly undermine the effectiveness of the tariffs,” he said.
A representative with Jersey Shore Steel declined to comment, as the company waits to see what the impact of the 25% tariffs on steel from foreign countries will have on the country.