US grain equipment manufacturers brace for impact as steel and aluminum tariffs take effect

USA – The recent steel and aluminum tariff adjustments introduced by the Trump administration has emerged as a major topic of concern for US manufacturers of products serving the grain handling and storage industry.

Industry players discussed the potential ramifications as they showcased their latest innovations during the Grain Elevator and Processing Society (GEAPS) Exchange in Kansas City, Missouri, many expressing worries about rising costs and supply chain uncertainties.

On February 10, President Donald Trump signed two proclamations modifying previous directives on steel, aluminum, and their derivative products.

The new tariffs, which take effect on March 12, reinstate a 25% tariff on all steel imports and introduce additional steel derivative duties.

Meanwhile, aluminum tariffs will rise from 10% to 25%. Exemptions granted to Argentina, Australia, Brazil, Canada, the European Union, Japan, Mexico, South Korea, Ukraine, and the United Kingdom since 2018 have been removed.

The United States relies on imports for nearly half of its aluminum supply, with Canada providing over half of US aluminum imports. Though US steel mills produce approximately 75% of domestic steel demand, certain industries, such as construction, continue to depend on imported specialty steel products.

Manufacturers at the GEAPS Exchange expressed concern over how these tariffs could drive up material costs and impact their production and pricing strategies.

Manufacturers respond to market uncertainty

Sioux Steel, headquartered in Sioux Falls, South Dakota, was among the exhibitors at GEAPS Exchange, presenting its latest grain storage and handling solutions.

Max Rysdon, a sales engineer at Sioux Steel, noted that while immediate impacts may be minimal due to pre-negotiated steel contracts, future projects extending beyond an eight-month timeframe could feel the effects of the tariffs.

“In the immediate future, I don’t see a tremendous impact, as most suppliers have their contract pricing locked in for steel. Sioux Steel has up to 85% of our capacity locked in for the next year at prices that were pre-2025. However, as we look further ahead, the tariffs could start influencing costs,” Rysdon explained.

Bulk handling equipment producer Essmueller, based in Laurel, Mississippi, also expressed concerns about price volatility. Executive Vice President Jamison Anding noted that while the company has yet to experience significant cost changes, price increases are expected as the tariffs take full effect in March.

“There will be a price increase. We know it’s coming. We’ve been ensuring our customers are informed as soon as we receive pricing updates,” Anding said.

According to Mike Hand, vice president of Americas commercial for Winnipeg-based AGI, a global manufacturing footprint may help mitigate supply chain disruptions. With facilities in Canada, the US, Brazil, India, France, and Italy, the company is exploring alternative strategies to balance market challenges.

“That diversification gives us options to serve markets even if we need to pivot operations. While supply isn’t a concern, pricing remains a key discussion point with our dealers and customers,” Hand said.

Superior Grain Equipment, based in Kindred, North Dakota, expects pricing adjustments across all grain storage manufacturers by March, according to Vice President of Sales and Marketing Randy Coffee.

Coffee noted that every bin manufacturing company will have some level of price adjustment.  “We monitor the market closely and aim to make aggressive purchasing decisions ahead of increases,” Coffee said.

Similarly, Chief Agri President and General Manager Mark Kjar highlighted how price fluctuations are already affecting the Kearney, Nebraska-based grain storage and handling equipment maker.

Despite price volatility, manufacturers remain optimistic about grain handling and storage demand. Kjar noted that strong grain prices could bolster the industry, helping offset higher costs.

“The industry as a whole has been strong. Grain prices are recovering, which should positively impact business,” he said.

Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.