6 events in Passaic County with a date

Stress Test

How Trump's 25% tariffs on aluminum and steel will affect New Jersey economy

By: Daniel Munoz
NorthJersey.com
USA Today Network - New Jersey

..... President Donald Trump impose 25% tariffs Monday [02/10/2025] on steel and aluminum imports into the United States, a move that experts say will have far-reaching impact on business owners and average consumers in New Jersey.
..... "It's time for the United States to return to the system that made us richer and more powerful than ever before," Trump said over the weekend. [02/08-09/2025]
..... Economists warn that tariffs, which are taxes on foreign imports, can lead to higher prices for consumers. trump promised during his campaign to bring down inflation. But weeks into his second term, he has shown he plans to sue tariffs - a hallmark of his first term - as a tool to achieve both his foreign policy aims and his domestic agenda.
..... In New Jersey, the new tariffs on metals would affect everything from construction projects to grocery shopping, manufacturing and pharmaceuticals, experts say.
..... "There is no upside: in the state, said Thomas Pruse, an economist at Rutgers University in New Brunswick [NJ] who studies international trade.
..... Earlier this month, [02/2025] Trump promised blanked 25% tariffs on imports from Canada and Mexico, a move he said would clamp down on the flow of migrants and fentanyl over the U.S. borders
..... Trump later agreed to put those tariffs on hold for a month, but went ahead with 10% tariffs on Chinese imports.
..... "Once you put on tariffs, business slows down, investment slows down, decisions slow down,: Tom Clark, the Canadian consul general in New York told NorthJersey.com . "They would anticipate that there would be a slowdown of economic traffic.
..... In 2024, 23% of all steel used in the U.S. was imported, with Canada, Brazil, Mexico, South Korea and Vietnam as the largest suppliers, said the American Iron and Steel Institute. The U.S. gets most of its aluminum imports from Canada, Reuters reported.
..... Even with domestically sourced steel and aluminum, the fear is that those producers would "feel they're emboldened to raise prices<" said Eddie Russnow, president of Kearny-based [NJ] Mac Products, which makes electrical distribution and transmission products.
..... Russnow's firm was "ordering forward" with its Chinese supplier for the steel and copper used for many of Mac's components.
..... And even if the tariffs do boost U.S. production of steel and aluminum, that could take years, said Prusa, the Rutgers tied economist.

Higher costs on construction

..... He said steel is used primary in commercial construction: Warehouses, garages and office space.
..... It's used to a lesser extent in residential construction for heating, ventilation and air condition, as well as pipes, Prusa said.
..... In building constructions, steel is used in :beams, roofing, brackets and reinforcing, "he said, as well as in key infrastructure, such as bridges, railings, railways, lighting and safety barriers. think of the huge Gateway project underway to build a new train tunnel beneath the Hudson River between North Jersey and Manhattan to improve service NJ Transit and and Amtrak riders.

Potential for costlier pharmaceuticals

..... Aluminum is used in packaging for medication, Prusa said.
..... It's also used in certain consumer products, calculating antacids, astringents, aspirin, food additives, antiperspirants and cosmetics, said the federal Center for Disease Control and Prevention.
..... New Jersey-based drug-maker Johnson & Johnson produces some antacids, such as Pepcid Complete, and Bayer, which has mane facilities in Morris County, is the largest producer of aspirin.
..... Johnson & Johnson is also one of the world' largest producers of cosmetics, including beauty products for skin care and hair care.

What about Trump's previous steel and aluminum tariffs?

..... Trump imposed tariffs on steel and aluminum in 2017.
..... But he reached a deal in 2019 to lift those tariffs on Mexico and Canada. There were also exemptions for South Korea and Australia.
..... The tariffs reduced the import of steel to the U.S. by 24% while increasing domestic steel production by 1.9%, said a 2023 report by the U.S. International trade Commission.
..... And, the report added, tariffs pushed the price of steel up by 2.4%.
..... Prices of aluminum foil peaked in June 2018 amid the tariffs, according to data form the St Louis Federal Reserve Bank.

..... This article contains material from USA Today.
..... Email: munozd@northjersy.com' X; 2danielmunoz100 and Facebook.

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