Trump Tariffs…How will Pallet Rack & Wire Deck prices be affected?
President Trump’s new 145% tariffs on China will have a dramatic and significant effect on the sale of NEW (and as a result) USED Pallet Rack as well as Wire Mesh Deck Panels, including all steel storage equipment, sold in the United States.
At the end of the day, Pallet Racking, like all steel fabricated products are commodity based. Pallet Rack and Wire Deck pricing fluctuates, based off the cost of raw materials, primarily the cost of unfabricated steel and steel wire. Since so many domestically manufactured steel products are fabricated out of imported steel, Pallet Rack will be on the rise. The bulk of steel used in US Pallet Rack and Wire Deck manufacturing originates from China.
A little history… During Trump’s first term, the US assessed a 25% tariff on all imported products from China. To avoid the tariffs, many China based Pallet Rack and Wire Deck Panel Manufacturers opened up factories in neighboring Vietnam. Then unexpectedly, COVID hit and presented new challenges to the international freight/shipping channels. Freight costs from Asia to the US skyrocketed. Since then, international shipping has returned to more moderate levels.
While it is uncertain WHEN these costs will rise, as a result of these new tariffs, it is a certainty they will. For the past several years, we, as a distributor get monthly price pages for “quick-ship” Pallet Rack/Wire Deck from one of the largest Pallet Rack Manufacturers in the US. Over the past several years, prices fluctuate slightly from month to month. One month it may be an increase in Pallet Rack Uprights and Beams and the next on Wire Decks (which are built primarily of steel wire). Prices will rise and then fall. We expect the increases to be significant and impact both products starting May 1.
Our hope is these changes are temporary and they will result in lasting positive changes for our industry. Hang in there, things will get better!
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