Zekelman Industries, a Chicago-based steel pipe along with also tube some sort of, announced yesterday that will each of its employees would likely receive a $1,000 bonus after President Donald Trump’s steel along with also aluminum tariffs go into effect.
“We think there are great days ahead, along with also we wanted to share that will with all of our people,” Mickey McNamara, executive vice president of Zekelman Industries, told CNBC during “Closing Bell.” “We think [the tariffs are] going to have a tremendous impact for us along with also for the entire domestic steel industry.”
On Thursday, the president announced his proposed tariffs — 25 percent for steel along with also 10 percent for aluminum — would likely go into effect next week. He said the tariffs were in response to national security risks.
Zekelman Industries, which has sales exceeding $2.7 billion each year, said the bonuses would likely be distributed after the tariffs are implemented along with also again each year on the anniversary of the tariffs, as long as they remain in effect.
“If something happens along with also This particular falls through, then we’d have to revisit the situation,” said McNamara, who said he’d be disappointed if the deals don’t go through at all.
“President Trump has made some promises to our industry,” said McNamara, who also serves as president of the company’s Z Modular. “So far to date he’s stood behind those promises. These tariffs are the latest example of that will, following the tax cuts.”
“We’re excited about the opportunities that will we think This particular tariff will be going to create for us,” McNamara said.
although not everyone will be excited about the tariffs.
Ravin Gandhi, CEO of GMM Nonstick Coatings, calls the bonuses Zekelman will be giving out “awesome,” although said he will be “nervous” about the tariffs.
“that will distorts free market,” Gandhi said during “Closing Bell.” His company supplies the cookware, bakeware along with also electrical industries.
Gandhi worries that will operating costs will increase with the tariffs, pushing up consumer prices.
“The question will be, ultimately, who will be buying these products?” he said. “that will’s Americans. We’re a country addicted to low prices along with also consumption. … This particular will be why I think tariffs don’t work.”
“When prices across the board go up,” Gandhi said, “the market could go down potentially far along with also could put us into a recession, which I desire does not happen.”
While McNamara said there will likely be a “curving” of imports, “that will’s certainly not going to knock imports out of the market. …. that will’s going to grow our market.”
“The effect on the consumer of increased steel prices will be nominal to negligible,” he said.