Lansing, Mich. — Businesses across Mid-Michigan are preparing for significant changes as steel and aluminum tariffs are set to double from 25% to 50%, a move expected to ripple through the region’s manufacturing and consumer markets.
David Flack, President of Sales at Salco Manufacturing in Jackson, expressed concern over how the increased tariffs will impact profit margins. “There’s a lot of unknowns from a manufacturer standpoint, as well as a consumer standpoint,” Flack said. “All those jobs and everything were quoted based on a set number, and now we’re looking at an extra 25% that was put on to that.”
Salco Manufacturing produces steel, wire, and automotive components, placing it at the heart of the industry affected by these tariff adjustments. Flack emphasized that the tariffs are one of several factors currently influencing the American auto industry’s trajectory. “There’s a lot of growth and innovation and outside factors that drive what the American auto industry is going to be,” he noted. “Obviously being right in the heart of it, we hope that it comes together, and, you know, we keep moving forward.”
While the tariffs may not directly affect steelworkers at the plant, Flack warned that consumers could see the impact in everyday goods. Aluminum and tin cans, commonly used for soda and canned vegetables, could become more expensive as manufacturers pass on costs. “I don’t really see it benefiting the steel worker that much,” Flack said.
At this point, it remains unclear how the increased tariffs will influence partnerships with steel mills located outside the United States. For now, manufacturers and consumers alike are bracing for the economic effects of the tariff hike.
