Dear valued customer,
As you are most likely aware, President Trump has signed legislation that will impose a 25% tariff on steel and a 10% tariff on aluminum. As the new law is written, it will take effect on March 23, 2018. While two countries, Mexico and Canada have been exempted from this action, we are hopeful that the commerce department will conduct further investigation into the various grades of steel that are not immediately available in the United States.
Today there are no domestic mills producing rolled tool steel rounds and while some have the capability, the likelihood of a domestic source for tool steel rounds is slim at this point. While we do have some domestic mills that quote forged tool steel rounds, the pricing has always been significantly higher than the imports.
SB Specialty Metals is raising all steel prices effective with orders placed after March 16, 2018. This increase is to try and recover some of the increases in our insurance costs, wages, trucking and raw materials.
If after March 23, 2018 we find that we are paying the 25% tariff on our incoming tool steel and high speed steel we will be forced to consider additional increases to help absorb this new additional cost for the material.
We will keep you informed as more information is available.
Thank you for your understanding.
President and CEO SB Specialty Metals