Living in uncertainty, local steel businesses prepare for worst case scenario

Local steel and aluminum companies are waiting for the impacts of U.S. President Donald Trump’s 25 per cent tariffs on products with some already seeing price increases and supply chain slowdowns.

The Manager for Metal Supermarkets Kitchener, Lexi Lorentz, said if they see suppliers raising their prices over the coming weeks or months, they will have to as well, which will ultimately affect their customers.

“The main concern is just the unknown; nobody knows what’s actually going to happen. We are hoping for the best but preparing for the worst,” Lorentz told CityNews Kitchener in an interview.

“With the tariffs going, Stelco in Hamilton already saw a slowdown in production so it could potentially mean there are delays in the supply chain.”

Hunter Steel has several locations including one in Guelph. A spokesperson in an email said it will feel the effect of tariffs and has seen price increases already from domestic tube mills.

“We have a lot of local customers that ship their products to the U.S., what remains to be seen is to what level finished goods will be taxed.”

They added they have no plans for layoffs but are waiting to see what happens.

During the last tariff increase by Trump in his first term, Metal Supermarkets Kitchener didn’t lay anyone off and is hoping not to this time around as well.

Lorentz mentioned the business likes to hold price quotes for customers for seven days or longer, but won’t be able to do that anymore “because of the unknown of what material could be tomorrow or the next day.”

It’s having to explain to customers that quotes given are time-sensitive due to the tariffs and the inability to predict what the supply chain will be like going forward.

Lorentz mentioned that some suppliers have simply increased prices, “just because they can,” during this time.  

“Whatever happens or not, not knowing is always the scariest part.”

Metal Supermarkets Kitchener likes to work with customers with small to large orders so Lorentz said they plan to look at other suppliers and ways to keep the bottom line as low as possible.

Lorentz noted that they want their customers to know any price increases they see aren’t necessarily the fault of staff.

“There may be slowdowns and we’ll be keeping lower inventory stocked.”

They were preparing for the previous Trump tariff threat before a 30-day pause was extended but now feel like they have no breathing room and no time to prepare.

The incoming tariffs on steel and aluminum won’t affect local companies like Kitchener Steel Service Centre, unless the federal government decides to retaliate again with counter tariffs.