Summary. With 25% tariffs reinstated on imported steel and aluminum in March 2025, U.S. fabricators like Mathison Manufacturing are feeling the strain. While intended to support domestic mills, the real-world outcome has been skyrocketing material costs, unstable supply chains, and shrinking margins. For high-mix, low-volume shops, sourcing flexibility is limited, and quoting projects has become a delicate balancing act. Specialty alloys, cosmetic metals, and even fasteners are harder to find, creating critical delays—especially in medical, defense, and water tech sectors. Buyers are adapting by involving manufacturers early in design, exploring recycled or domestic materials, and emphasizing collaboration. At Mathison, we see these challenges as a call to innovate: streamlining operations, strengthening supplier networks, and supporting our customers through honest communication. Tariffs may be out of our control, but resilience, trust, and problem-solving are always within reach.

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When the Metal Market Shakes, We All Feel It

In March 2025, the U.S. government reinstated 25% tariffs on imported steel and aluminum, aiming to boost domestic production and curb global overcapacity. But for those of us in the trenches—fabricators, buyers and the industries that rely on us—the impact has been immediate and far-reaching.

At Mathison Manufacturing, where precision sheet metal fabrication is what we do best, we’ve been navigating this new reality in real time. Protectionist policies might help U.S. mills in the short term, but they’ve also stirred up pricing chaos, complicated sourcing and introduced a level of volatility that makes it hard to plan—let alone thrive.

What These Tariffs Actually Mean

The Section 232 tariffs—renewed in 2025 and subject to change—apply to steel and aluminum imports from every country, including longtime trade partners like Canada, Mexico and the European Union. And it’s not just raw material; derivative products like sheet coil, fasteners and extruded forms are also affected.

The idea is to eventually level the playing field against unfair global competition. The reality in the interim is that U.S. manufacturers are facing higher costs, unpredictable lead times and major disruptions to the way we’ve done business for years.

The Fabricator’s Reality

1. Spiking Material Costs

• Imported steel is up 23%, aluminum by 8%, and the numbers could change at any time.
• Domestic mills, shielded from foreign competition, have hiked their prices too.
• It’s not just sheet metal—fasteners, screws and wire are also getting more expensive.

For high-mix, low-volume fabricators like us, the impact hits harder. We’re less able to negotiate bulk pricing, and our custom parts make substitutions tough. Every quote, every project, every customer conversation has become more delicate.

2. Supply Chain Shake-Ups

• Domestic mills are overwhelmed.
• Specialty alloys and cosmetic finishes are harder to come by.
• Delays are stacking up, especially in critical sectors like defense, water and medical tech.

The fix? Communication. We’ve found that being upfront with our customers about timelines and constraints builds trust—and trust helps everyone move forward.

3. Margins Under Fire

Profit margins were already tight. Now, we’re forced to make tough choices—what work to take on, what to pass up and how to price responsibly without driving away customers. Smaller shops may struggle to stay afloat. Even we have had to get more strategic.

Buyers Aren’t Immune

Competitive Pressure

Higher material costs mean American-made products are more expensive globally. That puts export-focused industries at a disadvantage, forcing tough decisions on pricing and production volume.

Sourcing Scramble

Forward-thinking buyers are bringing fabricators into the design process earlier, evaluating alternative materials and considering domestic or recycled sources—even if the cost is higher. It’s all about managing risk.

Bigger Picture, Bigger Ripples

• Downstream strain: Construction, automotive and packaging industries are all under pressure.
• Inflation: Costs are already creeping into everyday consumer prices.
• Trade tensions: Allies are not thrilled. Retaliatory tariffs could make things even costlier.
• Capacity limits: U.S. production can’t keep up—steel is only up 1.9%, aluminum 3.6%. That means this volatility isn’t going away anytime soon.

Where Do We Go From Here?

We can’t control trade policy, but we can control how we respond.

• Diversify supply chains to include recycled and non-tariffed materials.
• Collaborate early in design and procurement to reduce waste and complexity.
• Streamline operations through lean manufacturing and smart sourcing.
• Speak up—advocate for policy adjustments that support real-world manufacturing.

Our Commitment

At Mathison, we see this as an opportunity to become more resilient, more connected and more committed to the partners we serve. We’re problem solvers by nature, and these challenges are just another problem to solve—together.

If your business is feeling the effects of these tariffs and you need a partner who understands the stakes, we’re here. Let’s get through it, stronger and smarter than before.