Press Release: Tariff Turmoil Hits North Carolina Steel Industry Amid Trade Agreements
Recent fluctuations in tariffs, despite new trade agreements between the U.S., the U.K., and China, are significantly impacting North Carolina’s steel industry. Howard Woltz III, CEO of Insteel Industries Inc., based in Mount Airy, highlighted China’s predominant role in the global steel market during a recent panel discussion on tariffs. Woltz argues that China’s aggressive steel exports—often priced below profitability—are destabilizing the industry globally.
Insteel, which operates ten plants across the U.S., manufactures essential infrastructure products. Woltz emphasized the crucial role of their products in concrete construction, mentioning that the complexities of the current tariff environment pose severe challenges. Most of Insteel’s machinery is sourced from abroad, leading to uncertainty regarding costs as tariffs are imposed and fluctuated unexpectedly.
Woltz expressed frustration at the unpredictable nature of the tariffs, noting that it complicates business planning and investment. He stated, "That’s just not the way to run a business," citing commitments made prior to the tariff reinstatements on steel from Mexico and Canada, which forced Insteel to seek suppliers from Algeria instead.
Rodney Pitts, chairman of the John Locke Foundation, echoed Woltz’s concerns, stating that uncertainty deters businesses from making investments. Woltz agreed, highlighting that while some operational commitments can’t be retracted, new ventures are stalled due to the turbulent landscape.
Woltz stressed that China’s influence over global steel production complicates matters, asserting, "Solving a problem within China’s borders isn’t really solving the problem." He concluded that the comprehensive strategy involving China’s extensive market reach requires serious attention and solutions at a global scale, noting that the "genie is out of the bottle" regarding China’s mercantilist approach to trade.
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