MILWAUKEE — Local warehouses and manufacturers are reacting to President Donald Trump’s announcement to increase tariffs on Canadian steel and aluminum by an additional 25%, bringing the total to 50%.
He announced the change would take effect Wednesday.
This move comes in response to Ontario Premier Doug Ford’s announcement of a 25% tariff on electricity supplied to certain U.S. states. However, following a conversation with U.S. Commerce Secretary Gina Raimondo, Ontario has decided to suspend that surcharge.
These tariffs come on top of existing 25% tariffs on imports from Mexico and Canada and a 20% levy on goods from China. The ripple effects of these tariffs are likely to reshape the landscape for the steel and aluminum industry across the U.S.
Nate Lenhof, senior project manager at Arker Warehouse in Milwaukee, told TMJ4 News that local businesses are preparing for the impacts.
“Our manufacturers are saying things are crazy. They’re having a hard time even getting quotes back to us,” Lenhof said.
Arker Warehouse, which has been in business for more than a decade, specializes in the sale and installation of warehouse goods, much of which involves steel equipment. Lenhof noted that rising supply costs will ultimately affect both the company and consumers.
“Either way, we’re going to have to be paying more for the materials that we’re sourcing, the new manufactured goods, and ultimately it’s the customer that has to pay that,” he explained.
Watch: Milwaukee warehouses brace for impact of increased U.S. tariffs
Lenhof expressed his frustration with the uncertainty surrounding these tariffs.
“They say brace yourselves, it’s going to start, and then the next day they say, ‘Oh no, 30 more days of negotiation.’ That’s really frustrating for us. All we can say is ‘watch the news,’” he said.
The inability to provide accurate pricing forecasts presents a significant challenge, particularly for smaller warehouses like Arker.
“It’s going to be hard for us to compete with companies that have just unlimited revenue and capital to deal with,” Lenhof said.
Despite these changes, Lenhof is determined to continue providing the best service possible to customers.
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