As fast as news headlines change these days, there's a good chance this message is outdated soon after it's sent. That's because announcements about tariffs are fluctuating daily, and sometimes hourly. Despite this unpredictability, we can confirm that both actual and threatened tariffs have started to impact the prices we pay for some goods.
Unlike fluctuating tariffs declared on other imported goods, steel tariffs have been consistently set to take effect on March 12. Starting today, a 25% tariff has been applied to all steel imports from suppliers outside the United States, including Canada and Mexico.
This announcement has prompted many American manufacturers to rapidly shift to domestic suppliers. For that reason, there has been a sharp increase in demand at U.S. mills – where a majority of Superior's steel is historically sourced – leading to a 25-30% increase in domestic prices.
Additionally, we're starting to receive price increases from some of our suppliers of items like bearings, hydraulics-related and power transmission components.
We're monitoring the effect on our costs daily and if the trend continues, we'll need to enact price adjustments soon.
How long will the steel tariffs last?
If the past teaches us anything, some suggest shorter-term adjustments are possible if economic fallout mounts quickly. In 2018, steel tariffs led to a brief price jump and then eased as markets adjusted and exemptions were granted.
Without an official timeline, the best insight is they’ll last as long as the president deems them effective, balanced against political or economic blowback. That could means months if pressure builds fast, or longer if he doubles down.
We plan to respond to this challenge like we do others and promise transparency and integrity as we move forward together. If you have any questions, please reach out!
What's the impact on Canadian dealers?
Up north, we remain in a "wait and see" mode; however, we've had plenty of discussions and a contingency plan is ready should additional tariffs move forward.
Our plan is to serve the Canadian market directly from within the country, leveraging our well-established facility in Eastern Canada. We're planning to build a wider variety of products than we currently produce in New Brunswick. By doing so, we aim to maintain stability in supply and pricing, ensuring dealers can continue to provide our products without interruption or significant price fluctuations.
For now, the delays are manageable and give us time to refine our strategies and ensure that we can respond effectively to any changes. We remain optimistic and ready to adapt to ensure the continued success of our dealers in Canada.
