- 50% tariff on aluminum and steel are in effect
- American Fabrication in Bakersfield is expecting price increases
- The general consumer may pay the price
A significant shift is underway as a 50% tariff on steel and aluminum products has officially taken effect. We're diving deep to understand how this will impact local businesses — and, ultimately, you, the consumer.
“50 is just a lot, I don’t think our prices will go 50, I don’t know how our tariff works, I would think probably 25 percent and that’s, man that’s big,” said Kevin Russell, owner of American Fabrication.
Russell says he’s expecting a phone call from his suppliers within the next few weeks, informing him of a price increase. He explains that even a 15-cent hike per pound on aluminum or steel would be major.
“And steel is heavy, things are heavy in steel, so that 15 cents doesn't sound like much, it’s a lot, especially when you’re dealing with half a million pounds.”
As a fabricator, Russell’s business creates and repairs equipment for Bakersfield Public Works, local schools, farmers and the Kern County Water Agency.
“They don’t have a good taste in their mouth and neither do we, and we have to tell them but we can’t eat it.”
He says that in order to stay in business, they’ll have to pass on the added cost of materials to their customers — and ultimately, he believes that could lead to price increases on water, produce and more.
“The water agency is a big customer, so they have to pass it on. You keep growing so the farmer keeps planting, well all his costs are going up. And the future is going to be tough and I think he is going to stick to it this time.”
Russell mentioned this isn't the first time his business has been impacted by tariffs. President Trump increased tariffs on steel by 25% and on aluminum by 10% during his first term.
“I hope I’m being overly cautious, I hope it doesn't come about, but I saw it last time and it wasn't very pretty.”
Russell says he does not expect the tariffs on steel and aluminum to go down anytime soon.
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