As you are aware, on March 8, 2018, the federal government announced that it is imposing a 25 percent tariff on steel and a 10 percent tariff on aluminum imports from all countries, except Canada and Mexico. Sko-Die understands there is a lot of confusion about how this will affect our company’s, and the broader industry’s supply chain. The new tariffs take effect at 12:01 a.m. EDT on March 23. They apply to goods that enter into the customs territory of the U.S. (any location where U.S. customs laws apply) or are withdrawn from a warehouse for consumption on or after that date.

This action by the federal government places a 25 percent tariff on flat, long, semi-finished, pipe and tube, and stainless steel; and a 10 percent tariff on articles of aluminum, including: plate; sheet, strip and foil (flat-rolled products); wire; bars, rods and profiles; tubes and pipes; tube and pipe fittings; castings and forgings.

Due to many objections from all segments of manufacturing, steel and aluminum produced in Canada and Mexico is exempt for now. The tariffs are broad and cover virtually all of the raw materials on which the metal forming industry relies. It is our understanding, through our industry trade association and its contacts in Washington, that several countries also are seeking similar exemptions, which the administration may consider, based on national-security grounds. The Department of Commerce may also exclude any steel or aluminum product “determined not to be produced in the United States in a sufficient and reasonably available amount or of a satisfactory quality”, to meet “specific national security considerations.” Many companies, individually or through their trade association, are working with their Congressional offices and others in Washington, D.C., to put together a petition to exclude certain products not manufactured in the quantity and quality needed to support the U.S. manufacturing supply chain.

Please know that here at Sko-Die we are very closely monitoring these developments and have a direct line to the latest news from Washington. We are committed to continuing to meet our customers’ requirements while also delivering a top-quality, globally priced product. However, as you know, a significant tax on any steel or aluminum input will cause a ripple effect throughout the supply chain, regardless of the product manufactured. Our industry is working with government officials and other industry segments to educate policymakers about the impact that these tariffs have on manufacturing in America.

The most important commitment Sko-Die has to you, our customer, is to continue manufacturing the same quality product that you have come to expect, while remaining competitive, despite the new tariffs imposed by the U.S. government.

We look forward to continuing our valued relationship with you and working together and with our elected officials to produce high-quality manufactured products in the U.S., at competitive prices. Please reach out to us directly if we can answer any questions or to discuss in more detail the impact on the pricing and availability of your specific components, assemblies or products.