As the manufacturing industry begins to get “its mojo back,” Miles Free thinks danger might lie ahead for the sector, especially if the federal government imposes tariffs on key raw materials.
On Thursday, President Donald Trump signaled that he planned to impose a 25-percent tariff on imported steel and a 10-percent tariff on imported aluminum, according to national reports as this story went to press. The move — which exposed deep rifts in the administration — fulfills a Trump campaign promise and came after the U.S. Department of Commerce recommended even higher tariffs on the raw materials last month.
In Michigan, 325 shops and 11,165 employees may be affected by the tariffs, said Free, the director of industry research and technology at the Brecksville, Ohio-based Precision Machined Products Association (PMPA).
Free described imposing the tariffs as the federal government taking a step “too far” in affecting American industries.
“We don’t know how we can adjust,” Free told MiBiz. “You can’t make a product without steel, you can’t make a product without aluminum.”
Trump had scheduled an announcement on the tariffs for March 1, but delayed issuing the order because a legal review had not been completed, the Washington Post reported. The move was described as a delay in announcing the tariffs, not a cancellation of the plans, despite cries from industry and warnings from other GOP lawmakers for Trump to tread carefully so as to not start a trade war.