NASHVILLE, Tenn. (WTVF) — The 50% tariff on steel and aluminum products, including derivatives, placed on most countries is hitting some smaller items with big impacts like screws, nails and bolts.
Unless you're an avid DIY-er or in the construction industry, you probably don't give fasteners a lot of thought. Distributors like Robert Lehmann, who specializes in marine fasteners, said it's been a rocky 6 months.
“My costs have probably increased between 30 and 50% depending on the item. And that is the vast majority of the margin already,” said Lehmann.
The Rhode Island based company ships it's specialized fasteners all over the U.S. He hasn't had to increase prices for his customers yet, but Lehmann is seeing the impact.
"It has slowed down parts of the economy that you wouldn't even think it would touch. You know a lot of companies are pushing back large projects."
The large projects Lehmann sees being postponed are in construction and electrical. In the consumer world, higher prices on metal fasteners are one of the small details making up the larger picture.
"Steel and aluminum, of course, are used as inputs,” said William Hauk. “And a lot of things like auto manufacturing, aircraft manufacturing, construction, all of those industries will see their input costs go up.”
Fasteners represent a significant part of total material costs for cars, household appliances and many home improvement goods.
America’s main source for imported fasteners is Taiwan at 33%. Taiwan has built a specialized industry to create high quality fasteners, which is one of the reasons Lehmann sources some products from there.
"A lot of companies have done this, and a lot of importers have done this because ultimately they see foreign producers as being cheaper or higher quality or some combination of the two,” said Hauk.
Before the tariffs implemented this year, Lehmann tried to source more materials from the U.S.
"Unfortunately, the manufacturers in the United States don't always have the equipment,” Lehmann explained. “They don't have the expertise. And even when they do, the raw materials are tariffed as well."
The tariffs are significant, but for distributors the price isn't the biggest problem.
Do you have more information about this story? You can email me at tony.sloan@newschannel5.com.
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