Steel and Aluminum Tariffs

The North American aluminum market continues to impact the billet supply chain supporting extrusion orders. Recently, several billet suppliers encountered shipping delays for metal originally scheduled for delivery in May and now June. As a result, these shipments arrived later than expected and after the relevant customs deadline, making them subject to an additional 25% tariff.
Given the already limited U.S. billet inventory, suppliers are prioritizing transactions with buyers willing to absorb the tariff-related premium. The Mid West Premium increased to $0.68/lb. between June 6 and June 9 before declining to $0.57/lb. as of June 23. Should current market conditions persist through month-end, the average for June is likely to settle around $0.57/lb. To put this into perspective, at $0.57/lb., there remains an approximate $0.14/lb. (calculated as 57¢ × 25% ≈ 14¢) that suppliers need to recover to offset the incremental 25% tariff on delayed imports.

What does this mean for your business? It is advisable to begin preparing for increased Aluminum costs. In contrast to tent tops, Aluminum components typically have a higher material cost, resulting in a greater impact from fluctuations in raw material prices. Tent pipe pricing reflects the cost of raw materials, anodization processes, and secondary operations. While tariffs are rising by 25%, the overall effect on costs is estimated to be between 10-12%. We continue to utilize dynamic pricing strategies and remain committed to minimizing the impact on our customers.