When the Trump Administration imposed tariffs of 25% on steel and 10% on aluminum in March, it kicked off one of the nation’s most heated and far-reaching trade wars since the Smoot-Hawley Tariff Act of 1930. That legislation, which was expanded by President Hoover to include more than 20,000 products across the agriculture and industrial sectors, is viewed historically as an abject failure and a prime reason for the sustained economic depression through the 1930s.
Seven months into Trump’s trade war, the jury is still out. The circumstances today are markedly different than 88 years ago, of course. The economy is strong. But America is no longer the global manufacturing powerhouse it once was, and the nation has operated a global trade deficit of $100 billion or more annually since the late 1990s (last year: $795 billion).
Opponents of Trump’s actions on trade argue that the policies are outmoded, shortsighted measures that undermine a free trade economy. Pundits in Trump’s camp believe that any short-term hit to U.S. businesses is worth the potential long-term impact to the economy, particularly the manufacturing sector.
“For the last 25 years, China has been waging a trade war against the United States,” said Dan DiMicco, a senior trade adviser to President Trump’s campaign, during a talk at Metalcon last month. “A lot of us have been fighting that war, but without the resources to win it, until now.”
DiMicco should know. As the former CEO of Nucor Corp., the nation’s largest steel producer, he’s seen firsthand the power a government-controlled economy like China’s can wield. The nation is home to half of the world’s 10 largest steel production operations, and has been known to “dump cheap steel” on the world market to artificially deflate material prices, said DiMicco. More alarming, he said, is the potential threat to national security: “Our defense department says we can no longer supply parts we need for our military. You cannot be a leader of the world if you don’t have a strong manufacturing base and a strong steel industry.”
Meanwhile, the U.S. construction industry keeps humming along. Prices for aluminum- and steel-based materials have soared, but the construction sector seems to be taking it in stride. Nonresidential construction spending reached a record-high $762.7 billion in August, bolstered by a healthy backlog of work. And even when the impacts from the tariffs are factored in, construction industry economists remain largely upbeat with their forecasts for 2019 (tinyurl.com/y9qwcwln).
For now, Building Teams are finding a way to get their projects completed under increasingly onerous circumstances. Is there a tipping point when escalating costs will force developers to shelve projects? Or will prices stabilize to a “new normal” that keeps the work flowing? The answers, unfortunately, are anyone’s guess.
Related Stories
| Apr 17, 2012
Princeton Review releases “Guide to 322 Green Colleges”
The guide profiles 322 institutions of higher education in the U.S. and Canada that demonstrate notable commitments to sustainability in their academic offerings, campus infrastructure, activities and career preparation.
| Apr 17, 2012
FMI report examines federal construction trends
Given the rapid transformations occurring in the federal construction sector, FMI examines the key forces accelerating these changes, as well as their effect on the industry.
| Apr 17, 2012
Alberici receives 2012 ASA General Contractor of the Year award
Alberici has been honored by the ASA eight times in the award’s nineteen-year history--more than any other general contractor in its class.
| Apr 16, 2012
Freeland promoted to vice president at Heery International
Recently named to Building Design+Construction’s 40 Under 40 Class of 2012.
| Apr 16, 2012
University of Michigan study seeks to create efficient building design
The result, the researchers say, could be technologies capable of cutting the carbon footprint created by the huge power demands buildings place on the nation’s electrical grid.
| Apr 16, 2012
UNT lab designed to study green energy technologies completed
Lab to test energy technologies and systems in order to achieve a net-zero consumption of energy.
| Apr 16, 2012
$80 million in export financing for solar project in India
The project, “Rajasthan Sun Technique Energy Private Limited,” is a subsidiary of Reliance Power and is being co-financed by the Asian Development Bank and FMO, the Dutch development bank.
| Apr 13, 2012
Goettsch Partners designs new music building for Northwestern
The showcase facility is the recital hall, an intimate, two-level space with undulating walls of wood that provide optimal acoustics and lead to the stage, as well as a 50-foot-high wall of cable-supported, double-skin glass
| Apr 12, 2012
Solar PV carport, electrical charging stations unveiled in California
Project contractor Oltman Construction noted that the carport provides shaded area for 940 car stalls and generates 2 MW DC of electric power.
| Apr 10, 2012
JE Dunn completes two medical office buildings at St. Anthony’s Lakewood, Colo. campus
Designed by Davis Partnership Architects, P.C., Medical Plaza 1 and 2 are four-story structures totaling 96,804-sf and 101,581-sf respectively.
