On March 8, 2018 President Trump expanded Section 232 of the Trade Expansion Act of 1962 by imposing a 25% tariff on imported steel and a 10% tariff of imported aluminum products. In the subsequent days he announced exemptions for Canadian and Mexican products. A full understanding of the tariffs remains to be seen, pending trade negotiations, but contractors and subcontractors will likely be impacted.
During similar periods of price escalation, in most recent memory the copper and steel spikes of the 2000’s, contractors who were not protected with price escalation clauses in their contracts will likely have difficulty recovering increased cost. The Mechanical Contractors Association of America (MCAA) has developed tools designed to aid contractors in recovering cost lost in “market-driven escalation.” There are avenues available to recover cost because of the unique nature of a tariff.
The MCAA’s management Methods Manual Recovery of Material Escalation Cost Arising From Steel and Aluminum Tariffs provides a detailed picture of what to expect and how to prepare for the changes ahead. Click on the links below to access the Manual Recovery of Material Escalation Cost Arising From Steel and Aluminum Tariffs.