Braidy Industries claims US firms covering up management failures with aluminium tariffs

Braidy Industries founder Craig Bouchard is of the view that smaller US firms, who are laying off stuff and curtailing production are trying to cover up their own management and operating faults with aluminium tariffs.

Bouchard is one of the strong supporters of Trump administration’s 10 per cent tariff on aluminium imports. Many steel sector executives also reported profits rise as a result of a 25 per cent tariff on steel imports and praised Trump’s effort to support the metals industry.

The top executive of a number of businesses, Bouchard disagrees with the Republican lawmakers, economists and others who argue the new duties will undermine a growing economy.

He argues that the U.S. has been at a competitive disadvantage for years because of global tariffs on American goods and it’s high time the country protects its domestic producers.

"To a significant degree, the vast majority in the business community realize that this is a fight that has to be fought," Russell Price, chief economist with Ameriprise Financial, said in a recent interview. "This isn’t going away until it's resolved."

According to him, tariffs on Chinese imports were required to stop the country from flooding the U.S. market with subsidized aluminium. He believes the tariffs on trade partners like the European Union, Canada and Mexico are part of a larger negotiation process intended to make international trade scenario fair to the US.

“If there’s a trade war, generally, we are going to win it,” Bouchard said in an interview with the Washington Examiner. “It will end up with more fair trade practices around the world.”

Braidy Industries, which would open a $1.6 billion aluminium rolling mill in Kentucky in 2020, isn't yet affected by the tariffs as the facility hasn't yet begun production. Many industry players including Caterpillar, General Motors and Ford Motor Co. disagree with him and warn that the duties may lead to higher prices and lower profits in the second half of this year.

He however urged the administration to exempt some car manufacturers from a possible 25 per cent levy on auto imports. The new Braidy Industries plant is designed specifically for supplying to the auto industry and it received a $10 million tax break from Kentucky for the facility.