Steel and aluminum tariffs add to uncertainty for consumers, Port of LA
As to the immediate impact that move will have on consumers, some experts believe it's too early to tell.
LOS ANGELES (KABC) -- Tariffs on steel and aluminum imports doubled on Wednesday after President Donald Trump signed an executive order, raising the tariff rate to 50%.
As to the immediate impact that move will have on you, some experts believe it's too early to tell.
"Trump has been threatening tariffs, imposing tariffs, backing off tariffs. Are these tariffs real? How long are they going to last? What's going to happen? There's a lot of uncertainty," said Gary Richardson, an economics professor at UC Irvine.
A lot of steel and aluminum comes from Canada, and the tariffs could drive up the price of things like home construction materials, cars, and canned goods.
But Richardson said people wouldn't feel it in their wallets right away.
"It takes six to nine months for raw materials to come into the supply chain and then to become finished goods, so this steel or aluminum tariffs that you're imposing today, they're going to show up six months from now," he said.
It could, however, negatively affect the cost of goods and holiday spending. In addition, Richardson predicts the steel and aluminum tariffs could create jobs in the future, but they wouldn't be in Southern California.
"Those jobs, if they come, they're going to be in Pittsburgh or somewhere out in the Appalachian area," said Richardson.
At the Port of Los Angeles, the busiest port in the country, the impact of Trump's tariffs is certainly being felt.
The port's executive director Gene Seroka said less ships are coming in, which means less jobs.
"We can see things a lot earlier in the supply chain based on orders and manufacturing overseas before it hits home here on the ground in the United States," he said. "As goes the Port of Los Angeles, so goes the American economy."
As the trade war continues Los Angeles Mayor Karen Bass promised to do what they can to address the problem.
"No matter what happens on the federal level, at the international level, we will stand with the industry and do all we can to keep moving, to keep our people employed and to keep goods on the shelf at fair prices," she said.
Richardson said right now, there's not much you can do but wait. However, if you plan to buy something with a lot of steel or aluminum, he recommends making the purchase now.
