A tariff is a tax or duty to be paid on a particular class of imports and exports. This tariff is proposed to increase the production of steel in the U.S. Two of the biggest industries that would be affected by this nationally would be the defense industry and the automotive industry. The appointed tax will have pros and cons for the national steel industry.
A pro for these tariffs is that it will give an increased opportunity to American steelmakers. The price of steel could hold at its current elevated level as long as there is a strong demand for steel domestically. The scrap metal industry could face a possible drop off if demand slows and scrap starts to pile up around the country. High domestic pricing could also push the production of automobiles to neighboring countries like Mexico and Canada. It depends on how long the automotive companies stick it out for until the cost is too much. The new tariff will try and stimulate an industry and bring jobs back to a sector looking for a resurgence, but how long will other industry’s hold out before leaving the country because of this.