COLORADO SPRINGS, Colo. — President Donald Trump signed an executive order on Tuesday, doubling the current tariffs on steel and aluminum imports from 25% to 50%. The new tax took effect Wednesday.
In the order, President Trump states that the increased tariffs will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum into the U.S. market. He said raising the tariffs to 50% would effectively end steel imports.
While some experts say the new tariff could raise prices for products from cars to appliances, as well as construction materials and electrical equipment, a Colorado Springs steel company welcomed this announcement.
"Hedge buying or even panic buying," Vice President of Western Steel Inc Micah Olesky said.
He said that's what many customers did before the first tariff took effect in March.
"They (customers) were buying to take advantage of low prices," Olesky said.
Steel prices did increase for a while due to the supply and demand situation, according to Olesky. However, he said those prices eventually came down.
"We now have companies with too much inventory. Now, they are trying to sell off their stock," Olesky said.
Olesky is not too concerned about Trump's order to double the tariff to 50% because he believes any price increases will be temporary.
"We really saw no effect. The only effect we did see was the supply and demand," Olesky said. "Same as the last time. We are going to have to see how this plays out."
