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Tax Cuts & Steel Tariffs

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  • Tax Cuts & Steel Tariffs

    I would like some opinions about how the recent Tax Reform will balance with proposed steel tariffs and how it might affect new self-storage development this year. As a Site Planner I found that 2016 was better than 2017 and at least one building provider agrees. They say that when foreign steel goes up, American steel follows.

  • #2
    Isn't the two totally different scenarios? The tax reform puts more money in my pocket and others as well. The tariffs, IMO, was to stop countries from dumping cheap steel/aluminum in to the US and help save American jobs. There is no such thing as any one all encompassing Bill/Reform that addresses all problems and makes it all great for EVERYONE. "Trump isn't trying to start a trade war, he is trying to end one". I would rather the US be more self sufficient and stop depending on other countries for something "CHEAPER" all the time. Look at what our inventory of oil has done for us. When I look for something that I need to buy I don't just look for the cheapest. In the long run, IMO, it is what is best for the country.


    • #3
      The issue that I have with both China and Mexico is that their 'quality' in production for many things, really sucks. There are no legit QA that makes sure that the steel is any sort of quality that we produce here. That's what I've heard from a guy in the steel business anyway. It will be interesting to see how it shakes out.
      "The comeback is always stronger than the setback."
      Mom, Navy Vet, genealogist and voracious reader
      Always sunny in California


      • #4
        Here in the Bay Area we had/have a major issue with China made steel. They used it for the new Oakland Bay Bridge and it's not holding up. This is the same bridge that collapsed in the Loma Prieta quake of 1989. I never liked crossing it before with American made steel. You will never find me driving over it ever again, period. Stevedore I anticipate the costs associated with development will rise but our own Steve_hajewski will probably have the most informed response to this query.
        Gina 6k
        VM: Four-Oh-Eight- Seven-Eight-Oh-Eight-Oh-Seven-Nine
        [email protected]

        You only live once, but if you do it right, once is enough!
        I am not an attorney, just an experienced manager who is willing to share what I have learned. Your thoughts, practices or opinions may vary and neither of us may be right.


        • #5
          Tariffs on imported steel (actually, even TALKING about tariffs) drives up the prices of domestic steel. I believe most (maybe all) common suppliers of buildings are using domestic steel. Some suppliers have already announced increases, including the roof manufacturers. We'll see what next week brings. There is a bit of uncertainty about how this will all shake out so I'm not comfortable commenting further.

          Speaking as an owner, if interest rates go up that could also throw some cold water on new development.
          Last edited by Steve_hajewski; 9 March 2018, 11:42 AM.


          • #6
            Question: After we charge China a 25% tariff on steel, I guess that means that they will pass that cost along to the consumer. Can we produce our steel cheaper or at the same rate than what China will have to charge us the consumer here in USA? We might have to bite the bullet some where, but we can handle it.
            Last edited by Dave Scott; 9 March 2018, 12:43 PM.
            Dave (Woodee) Scott


            • #7
              This comparison can be made in our industry. Several facilities in a city. They all like to charge about the same rate as each other and compete with quality or specials. Then a new facility or existing facility starts to under cut all others and that leads to "poorer quality tenants" to their facility. No matter what the other facilities do they are losing tenants and still keeping the few that care more about "quality". Finally, the city, because of all the problems attached to the cheap facility-police calls, gobs of homeless problems, sleeping in the units, fires on the premises, general unclean facility and surrounding area, unsafe area for people to be in....etc., the city council gets together and states that all facilities have to meet a minimum level of competency and cleanliness and rates and safety. The playing field is closer to level for all facilities now. It can't be called price fixing because they all used to be at about the same pricing before. If price is not the only concern for steel then Gina would not have to worry so much about that bridge.


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