New tariffs on steel and aluminum might have unintended effects - KTTC Rochester, Austin, Mason City News, Weather and Sports

New tariffs on steel and aluminum might have unintended effects

Posted:
(KTTC) -

After a lot of back and forth, and plenty of negotiation, President Donald Trump signed orders Thursday imposing tariffs, a tax on imported goods, on steel and aluminum coming into this country.

"The American steel and aluminum industry has been ravaged by aggressive foreign trade practices," Trump said. "It's really an assault on our country.  Its been an assault. They know better than anybody."

The move isn't sitting well with people in all fields even those in his party.

Senator Joni Ernst of Iowa put out a statement on Thursday saying in part:

"These tariffs could also set off a brushfire of retaliation measures against American exports. History shows that retaliatory tariffs are often targeted at agriculture."

The President was able to make this change because he states it was to better national security, but others suggest it might have the opposite effect.

"I think you'll have a lot of unintended consequences," Representative Paul Ryan said."You'll have a lot of collateral damage, not just consumers but businesses."

One of the victims could be in Rochester.

KTTC spoke with an official at Briese Iron Works and they said it's too soon to say exactly the effect these tariffs will have.

They did say steel is a global market and this move is likely to increase the prices of their materials, meaning they would lose money.

As for the construction industry, the Associated General Contractors of America put out a statement today saying quote:

"The likely trade war these new tariffs prompt will diminish demand for private investment in infrastructure as well as construction demand for manufacturing, shipping and distribution facilities."

The president's order goes into effect on Friday the 23rd.

After that, businesses in the area will begin to have a clearer understanding of the actual effects of these tariffs.

Powered by Frankly