An American steel manufacturer said Thursday that President Trump's sweeping new tariffs on imports will ultimately be a boon to the industry and workers in the U.S.
"I think it's a step in the right direction,” Stephen Capone, president of Massachusetts-based Capone Iron Corporation, said during an interview on NewsNation. "I think once all the dust settles, that people will realize that they're going to be buying steel from American mills."
Trump formally announced his long-discussed reciprocal tariff plan during a White House ceremony late Wednesday. The news sent the markets reeling Thursday and set off recession concerns, as world leaders responded to new heavy tariffs on nearly every nation exporting products to the U.S.
But Capone said he thinks that the tariffs will help American companies tackle foreign competitors, which has been one of the factors cited by Trump and his supporters for the hikes.
"I think the President had to do something," the executive said. "Nothing was being done. I think his hand was forced. Here in New England, our industry has been decimated by foreign competition."
"We're facing a lot of competition from the north and south borders, because they were importing cheap steel through China and India," he added.
Capone also noted that the American industry in his field has the capacity to handle increased demand and it will lead to more and better paying jobs.
"The steel industry has the capacity to meet the demand. the mills have the capacity, and the steel fabricators have the capacity," he said. "Right now, we're currently working at one third capacity, so obviously I could triple those numbers, work three shifts, work seven days a week, and wages would go up."
The White House has also argued that despite short-term pain, domestic manufacturing and jobs in the U.S. would benefit from the increased taxes.
The latest tariffs come just months after the president announced plans to increase tariffs on steel and aluminum imports. Industry CEOs have praised the move, and pressed Trump not to give exceptions or exclusions to the additional taxes.
