Nestor Garcia wakes up at day break every morning and wearing a pair of old blue jeans and worn boots he gets on his Prius to begin inspecting his various job sites. He is the manager of his family owned company, Paverite Pavers, a construction company which focuses on sewage, patio, sidewalks and driveways generally uses plenty of steel for their jobsites.
Though he no longer works on sites and rather focuses on paperwork he is able to analyse the cost of most of the supplies that are needed for each of his jobs so he is a bit anxious about the prices of steel going up.
“When the tariff went into effect, my father made the purchase for several bundles of rebar and by time we found out too late and the price went from $13,000 to 18,000 for what we normally buy” said Nestor. “that rebar will last us about a year now but I’m interested to see how this will affect those small construction businesses who focus on building smaller cheaper house, for them $5000 is a sharp increase”.
FABco LLc, a concrete supplier in Houston also reports feeling an increase on steel “we are selling a bundle of rebar at an increased cost due to the new tariffs that have been implemented” said a representative.
This Wednesday morning the Stock markets took another dive due to another escalation in the trade dispute between U.S. and China. This tit for tat battle has cause the market a couple of turbulent weeks and with tension risings between the two superpowers President trump’s claims that the tariffs are punishment to china unfair trade practices and theft of us technology.
Dow jones lost 500 points or 2 percent today amid China’s new trade tariffs on 106 US products such as soybeans, cars, aircrafts chemicals. This comes after President Trump’s decision to impose a 25 percent tariff yesterday on 1,300 goods that would hurt China’s machinery, aerospace and technology industry and cost them $50 billion.
Last week China decided to impose around $3 billion worth of tariffs on goods such as pork totaling, goods that would hurt rural areas which just happen to be Trump’s voter base.
Some are skeptical that the tariff will have any long term effect and are rather a ruse by trump to get what he wants. Sebastian Agudelo analyst for Merill Lynch said “its a lot of talk between the two countries, I’m not too worried, there shouldn’t be any long term pains”
“We will see what happens” said Nestor.