THIS BRINGING IT TOGETHER WHAT
IS IT GOING TO MEAN FOR U.S.
BUSINESSES BOTH BIG AND
SMALL?
WELL, BEFORE TODAY'S
ANNOUNCEMENT THAT THE TARIFFS
WILL KICK IN TONIGHT, THE FULL
WEIGHT OF STEEL TARIFFS WAS
ALREADY BEGINNING TO SQUEEZE
SOME AMERICAN BUSINESSES LEFT
AND RIGHT INCLUDING OUR NEXT
GUEST, STEEL EQUIPMENT COMPANY.
THE LAST TIME WE HEARD FROM
JAMES HOWARD WAS I THINK BACK IN
APRIL.
HIS CHARLOTTE-BASED COMPANY,
WHICH MANUFACTURES AMONG OTHER
THINGS, STEEL EQUIPMENT FOR JOB
SITES INCLUDING, THAT'S HIS
SCAFFOLDING THAT HE PROVIDED FOR
THE STATUE OF LIBERTY'S MASSIVE
RENOVATION SO RIGHT BEFORE MARCH
RENOVATION SO RIGHT BEFORE MARC1
RENOVATION SO RIGHT BEFORE MARCT
RENOVATION SO RIGHT BEFORE MARCE
RENOVATION SO RIGHT BEFORE MARCD
RENOVATION SO RIGHT BEFORE MARCY
RENOVATION SO RIGHT BEFORE MARCP
RENOVATION SO RIGHT BEFORE MARCE
RENOVATION SO RIGHT BEFORE MARCI
RENOVATION SO RIGHT BEFORE MARCE
RENOVATION SO RIGHT BEFORE MARCT
RENOVATION SO RIGHT BEFORE MARCU
RENOVATION SO RIGHT BEFORE MARCP
ANNOUNCED THE TARIFFS ON FOREIGN
STEEL, HOWARD WAS PAYING $0.38
PER POUND FOR HIS RAW MATERIAL.
NOW THE PRICE IS JACKED UP 50%
TO $0.68 A POUND.
SO WE THOUGHT LET'S BRING HIM
BACK AND BRING BACK THE OWNER OF
HOWARD STEEL, JAMES HOWARD.
SIR WHAT WAS YOUR GET REACTION
WHEN YOU HEARD TODAY THAT EVEN
AFTER WEEKS OF NEGOTIATION WITH
OUR ALLIES THE TARIFFS WILL HIT
CANADA, MEXICO AND EUROPE
BETWEEN THE EYES STARTING AT
MIDNIGHT TONIGHT.
>> WELL I'M SITTING HERE TRYING
TO FIGURE OUT, I DON'T
UNDERSTAND THE PURPOSE OF THE
TARIFF CAUSING THE AMERICAN
COMPANIES MAKING ANY MONEY AND
THEY WERE DUMPING BUT IF YOU'VE
GAINED THIS MASS TARIFFS TO
EVERYBODY IT KIND OF LOSES ITS
PURPOSE, IF EVERYBODY IS GOING
TO HAVE RETALIATION IN THEIR
MIND, AND THE CONSUMER OR THE
END-USER GETS LOST IN A BATTLE
THAT MAKES NO SENSE.
I UNDERSTAND IF SOMEBODY'S
DUMPING AND YOU'RE GOING TO PUT
TARIFFS ON EVERYTHING ON A
LEVELED PLAYING GROUND BUT NOW
IT'S NOT BASED OFF A LEVEL
PLAYING GROUND.
IT'S BASED OFF I CAN'T USE THE
WORD BUT YOU KNOW WHAT I'M GOING
TO SAY, OF CONTEST OF WHOSE
GOING TO DO WHAT, AND THERE'S
NOTHING THAT SHOWS ME THAT IT
COSTS ANY MORE TO MANUFACTURE
STEEL TODAY THAN IT DID THREE
MONTHS AGO.
LIZ: EXACTLY.
AND I BRING THAT, I'M GLAD YOU
JUST BROUGHT THAT UP.
NOT MUCH HAS CHANGED EXCEPT THE
ANNOUNCEMENT BACK ON MARCH 1
WHEN PRESIDENT TRUMP IN FRONT OF
A NEWS CONFERENCE BLURTED OUT, I
MEAN I DON'T THINK HIS TEAM WAS
EVEN READY FOR THIS, WHERE HE
SUDDENLY BLURTED OUT OKAY YEAH
IT'S GOING TO BE 25% ON STEEL
AND 10% ON ALUMINUM.
HE WAS AT A COMPLETELY UNRELATED
EVENT AND REPORTERS WERE ASKING
ABOUT THAT, MARCH 8, AND AS HE
BEGAN TO TALK, THAT'S WHEN THAT
CAME IN AND YOU'RE TELLING US
THAT SINCE THEN, STEEL HAS MOVED
HIGHER.
WHAT NOW DO YOU THINK HAPPENS,
NOW THAT WE'VE GOT RETALIATION
FROM CANADA STARTING TONIGHT AT
MIDNIGHT, AND THE UNITED STATES
IS SLAPPING TARIFFS THAT GO INTO
EFFECT SAME EXACT TIME.
WHAT WILL HAPPEN WITH THE PRICE?
CAN YOU FORESEE THAT?
>> WELL, FIRST OFF THAT LAST
INTERVIEW THAT I DID WITH YOU, I
THINK IT WAS ON A FRIDAY, BUT
THAT MONDAY I HAD GOTTEN AN
ANNOUNCEMENT THEY WENT UP
ANOTHER $0.02, I MEAN JUST AFTER
WE HAD TALKED THREE DAYS LATER
AND I'M STUCK.
I HAVE NO CHOICE I HAVE TO BUY
THE STEEL.
YOU CAN'T SELL FROM A EMPTY
WAGON SO TO SPEAK SO ALL I CAN
DO IS GO OUT TO MY CUSTOMERS OR
MY CUSTOMER BASE AND SEE IF THEY
CAN FORECAST WHAT THEY THINK
THEY'RE GOING TO USE BUT YOU
CREATE SO MUCH ANXIETY THEY
DON'T KNOW BECAUSE THEY DON'T
WANT TO FORECAST AND ITS GONE UP
PROBABLY 45-50% RIGHT NOW IN
DISCRETE PLAY OR EVEN SHEETS, SO
I'M JUST KIND OF STUCK AND I'M
NOT DOING A JOB OF WHAT I WANT
TO DO.
I'M JUST SITTING HERE TRYING TO
KEEP UP WITH WHAT DO I NEED TO
STOP AND ONE PLACE I'M IN A GOOD
POSITION, LIZ, I HAVE ENOUGH
CAPITAL TO PUT THE INVENTORY IN
THERE BUT THAT DOESN'T MEAN THAT
EVERYBODY DOES.
LIZ: OKAY.
>> WHICH MY END-USER AND STUFF
THEY DON'T HAVE ENOUGH CAPITAL
TO BUY STUFF TO SIT ON JUST TO
BEAT THE PRICE INCREASE, BUT
SOMEWHERE, THE WHOLE POINT OF
THE THING IS GETTING LOST.
THE POINT WAS SUPPOSEDLY THE
AMERICAN --
LIZ: STOP DUMPING, EXACTLY AND
NOW WHAT YOU'RE SAYING IS IT'S A
COMPLETE STANDOFF.
HAVE YOU LAID OFF ANYBODY, JAMES
HAVE YOU LAID OFF ANY EMPLOYEES
AND WILL YOU BE FORCED TO AT
SOME POINT?
>> NO I HAVEN'T LAID ANY
EMPLOYEES OFF, BUT I CAN TELL
YOU THIS MONTH, SPECIFICALLY
THIS MONTH, IT'S STARTING TO
SLOW DOWN, BUT THAT WAS BECAUSE
WHERE WE'RE GOING NUTS IN MARCH
AND APRIL BECAUSE EVERYBODY WAS
BUYING MORE THAN WHAT THEY
NEEDED JUST TO STOCK UP BUT NOW
THEY'VE GOT AMPLE SUPPLY, SO
WE'RE STARTING TO SLOW BACK DOWN
A LITTLE BIT.
AND YOU CREATE THIS ANXIETY
THROUGH THE MARKET AND IT HAS A
WAY OF GRABBING ROOTS.
IT GOES EVERYWHERE, AND I MEAN
EVERYBODY STARTS GETTING ANXIET
IES AND I HOPE IT DOESN'T
GET THAT BAD AGAIN AND I HOPE
SOMEBODY WILL COOLER MINDS COME
TO PREVAIL AND THINK THIS THING
OUT.
IF YOU'RE NOT MAKING MONEY FINE
BUT YOU CAN'T TELL ME THAT THAT
WASN'T MAKING MONEY BECAUSE
NOTHINGS CHANGED FOR THE COST TO
PRODUCE IT.
LIZ: LISTEN EXACTLY I'M GLAD YOU
MAKE THIS POINT AND WE BRING YOU
ON BECAUSE AS A COMPANY THAT'S
BEEN IN BUSINESS FOR 30 YEARS
THAT YOU'VE WORKED SO HARD FOR,
THINGS ARE VERY VERY NERVE