What You Need to Know About the Aluminum and Steel Tariffs and their Impact on the Fenestration Industry

In a recent announcement, the Trump Administration revealed a 25% tariff on imported aluminum and steel products, effective March 12. This move is expected to impact a number of industries including construction, automotive, aerospace and energy, which rely heavily on steel and aluminum. For businesses like ours, which depend on imported aluminum and steel fenestration products, this tariff means it will cost more to import these products. Since many U.S. industries rely on imported aluminum and steel because domestic production isn’t always sufficient or competitively priced, prices for domestic product will increase as well. While tariffs are intended to protect domestic manufacturers, they have historically resulted in higher costs across the board for a number of industries and we expect the same to happen now.

Understanding the Tariffs
The new 25% tariff targets imported aluminum and steel products, aiming to boost domestic production by making foreign materials more expensive. While the goal is to support U.S. manufacturers, it creates challenges for businesses that rely on these imports, like those in the fenestration industry. The result? Higher prices for aluminum and steel windows, doors, and accessories.

Impact on the Fenestration Industry
In 2018, the U.S. imposed a 25% tariff on steel and a 10% tariff on aluminum, which caused a significant increase in material costs. Steel prices rose by 20-30%, and aluminum prices went up by 10-15%. These higher costs were passed on to industries that rely heavily on these materials, and then passed on to the consumers. The new tariffs will similarly impact the pricing of windows, doors, and related accessories made with aluminum and steel. As we’ve seen in the past, the increase in the cost of imported materials is likely to force manufacturers to raise their prices, potentially affecting your residential and commercial projects. Businesses relying on imported materials also face increased uncertainty, as tariffs disrupt supply chains and will lead to higher prices for consumers.

What Can You Do?
To navigate the impact of rising costs, staying informed is key. As prices for aluminum and steel products increase, consider exploring alternatives like fiberglass or uPVC for your next window or door purchase, whether it's for a commercial or residential project. These materials are not only unaffected by the tariffs but also offer exceptional energy efficiency, low maintenance, and long-term savings. By choosing alu-clad wood, fiberglass or uPVC, you can take control of your budget, ensuring quality and value for your home or business improvement projects without the added burden of rising material costs.

At Eurostar, we understand the financial impact these changes can have, and we’ll do our best to help you navigate these shifts, offering quality options that fit your budget and requirements in this changing market.

Please contact your Eurostar Representative for questions or email: Tariffquestions@ESFWindows.com

Sources:
Supply Chain Today | The Impact of Tariffs on Steel and Aluminum
U.S. International Trade Commission. The Effects of Tariffs on U.S. Industry and Trade. USITC, 2018