Tariffs on aluminum are affecting at least one local manufacturer.
Wisconsin Aluminum Foundry (WAF) CEO Sachin Shivaram was on CNN’s The Lead with Jake Tapper last Thursday (August 7th) to discuss how aluminum tariffs are affecting the parts the company makes.
According to the White House, President Trump raised tariffs on steel and aluminum imports from 25% to 50%.
Shivaram explained that while the tariffs could help, WAF has to buy aluminum because electrical costs make it hard to make on site.
Shivaram explained that it’s made in areas with low-cost energy, such as “Trinidad and Tobago, Canada, Iceland, the Middle East, where, frankly, they don’t have any better…manufacturing uses for it, and they direct that electricity to the highly energy-intensive production of primary aluminum.”
Shivaram says that means the tariffs are costing more money because they have to buy aluminum before creating the metal castings they make.
“We lost an order to a Canadian competitor who is now starting out with aluminum costs that is more than 50% cheaper than what we’ve started out with,” he explained. “So, the tariffs have created a competitive disadvantage for us.”
The WAF CEO states that manufacturing demand has declined rapidly since the tariffs were announced.
Shivaram says, while Trump’s tariff idea can be good for business, “The rollout has been chaotic and not actually incorporating our voices. So, I’d urge him to sit down with trade associations, the National Association of Manufacturers, and other groups. And then think of a strategy that has permanency. So maybe supported by some legislative outcomes.”
Wisconsin Aluminum Foundry manufactures aluminum and copper alloy castings for the automotive, agricultural, and medical industries.
You can find the full interview with Jake Tapper and Shivaram at CNN.com.
