Trump’s Tariff Policy, a Hostile Move on Steel Workforce

Advisor March 27, 2018

Bad Days to Come

Amidst Trump’s controversial hike in steel tariffs, several manufacturing companies have begun to relieve many of the staff members from their duties. However, a particular steel company is struggling to hold on in the heat of the moment, as it also sent home a handful of its employees.

The Pennsylvanian called ‘the American Keg‘, began operations in 2015. American Keg has stand tall as the one and only producer of alcoholic Kegs made from stain-free steel in America, and it has weathered the storm with only locally produced steel materials, notwithstanding the stiff rivalry with manufacturers from China and Germany.

Since its establishment, American Keg has been running its activities on the basis of restriction and flexibility. The kegs that are measured at 15.6 per gallon from this company is a favorite among people, bar owners and cycles of friends. An American keg goes for $116, while the ones from China and Germany go for $95.

Cap: American Keg Company is on the verge of collapse after Trump signed a hike in tariffs for steel and aluminum

This keg maker has been thriving by transacting with breweries that operate on technical adeptness on a low-commission formula. However, it’s life may never be the same again with the Trump’s proposal, although the country’s number one citizen has defended the move as a way to protect the country. On the other hand, economic and industrial observers see it otherwise since the consumers of steel will be now forced to buy the products at higher prices from metal-manufacturing companies who will increase their prices, at the same time, destabilizing aluminium and steel from international firms.

Keeping His Promises

During his electoral campaign, Trump had already pledged to work on tariffs and this sounded like good news to steel manufacturers who were quick to increase prices in readiness. A financial report published by S&P Global Platts, claimed that immediately after the president gained the victory, the heat-folded steel rose to $232 per ton, an increase of about 35%.

Trump also promised to erect bridges and roads, fortify locally-made materials tagged “Patronize America”, revamp the steel market, and safeguard factories from unjust imports. Ironically, none of these pledges have seen actualization even after 365 days of his administration. Worst still, the steel industry is biting its fingers due to how he’d reneged on his pledges.

On 8th of March, Trump approved the new regulatory law that will enforce taxes, and the steel prices shot up to 4% daily. As for the keg firm, it is now getting ready to face the worse inflation on locally-made steel. The chief executive, Paul Czachor, expressed pessimism over the market unfriendly status, which he said has started to take its toll on the company due to overboard prices. He’s worried that American Keg may be kicked out from the industry soon.

The Real Consequences

Millions of steel workers are afraid of what tomorrow holds as tariffs remain unfriendly

So far, the consequences of the presidency’s rule have been quite negative on workers. The US Department of Commerce signed into action the burdensome taxes, and a week later, Czachor was forced to summon 10 among the 30-men workforce in the company during an emergency meeting where he announced that they had been relieved of their services.

55-year-old Mark Foster was also enlisted for the layoff. He confessed that the news was a rude shock to him and his emotions ran wide. He said the company was his only source of income, his life, his freedom. Unfortunately, says Foster, that shelter has been removed from his head. In an emotion-laden voice, he said that before his layoff, he had enough money from his job at the keg firm, and he could provide food for his household. However, things have changed for the worse and now, he and his wife are struggling to obtain food tickets from the government. Foster just couldn’t understand why did Trump took this step, forcing the poor workers to rely on charity when working for their daily bread was their pride.

Normally, the tariff imposition should be safeguarding the steel workforce whose population is about 140,000. It doesn’t matter whether this action will be temporal, the damages are already been done. American Keg is bearing the loss and may later halt its purchase of steel.

From January 2017 to October 2017, the importation of steel increased by 19.5%, an advance from the statistics of 2016, reported the American Iron and Steel Institute, a company responsible for monitoring steel importation.