>> Businesses and manufacturing are starting to feel the impact of steel and aluminum tariffs that took effect last week.

The Trump administration is putting a 50% tax on these medals when they're imported from other countries.

Backers say it's an effort to protect national security and promote more domestic manufacturing.

But critics say it could drive up costs.

Here with more on the local impact, our Julie Workman, a real estate lawyer and partner at Saul Ewing LLP raced out executive director of the Illinois Craft Brewers Guild and Robert Ladee a political science professor at the University of Chicago.

Thanks to all for joining us.

Raced out.

Let's start with you first.

Please describe how important steel and aluminum are in producing and distributing still numb are using every input, right?

So from Kansas to vessels to bring equipment.

>> Everything that's in a brewhouse are everything you drink out of in the craft beer industry and here in Illinois and across the country is made in steel and served in aluminum.

>> Okay.

So pretty important to workman how important are steel and aluminum, of course, in home building still in the movement our critical you need steel be used to provide support to buildings, even for ductwork and >> going to be on precious metals or use and things he would necessarily think about door knobs.

Straw polls, light fixtures, plumbing fixtures, there on present throughout new homes.

Yeah, this is something the backbones, the whole do, the that you do.

>> Robert, the Trump administration imposing tariffs on steel and aluminum during his first term as well.

What's the impact then?

>> Well, one thing to be aware of in the first administration as they pulled out the tariffs that only a few months after putting them in on Canada and Mexico part of the U.S. NAFTA renegotiations.

But during the history United States in recent history, number times of these tariffs put it, fact, and the Bush administration, for example, there were similar tariffs in 2002, what we saw was a reduction in jobs and tariff consume that steel consuming industries by about 200,000 workers.

That was more workers than in the entire steel industry combined.

So general effect has been very negative keep these things have been tried.

And as a result, they have been tried very long.

>> If you would, can 8 sort of like a brief sort of like walk through of how higher tariff means fewer jobs here because the Trump administration, their whole point is that their expectation is that this will increase jobs in manufacturing here at home.

>> So a tariff, but attacks on the importation of steel in this case or aluminum about 25% of us steel's imported from other countries.

And that means when you're trying to put something together like a car that's going increase the costs associate with it.

If you can't push those costs on to consumers, the only other option is to shut down and furlough workers.

The consequences can be dramatic, especially in communities that rely on the consumption of steel for products, which in many small towns across the United States and one of the challenges here is that those those job losses don't come back immediately.

You lose access to a small business in a community that might destroy the community itself.

And that's what we saw in the in the Bush administration ended the first Trump administration.

>> Julie, how does this uncertainty?

How does this impact construction and development?

It makes it very hard to get deals done.

And in our world, developers will do a financial analysis before they will even start working on a project look at her, which is going to cost what their profit margin will be.

At the end of the day.

And if you don't know what pricing looks like from one day to the next, it makes almost impossible to on those pro formas and figure out what your deal is going whether you're going to have a profit at the end of the day.

Andrea, what could this mean for price is so across the brewing industry right here in Illinois, we manufacture and use over and over a billion cans every year.

Right?

So even a slight price increase.

>> Would be drastically detrimental to our industry.

And, you know, you're exactly right.

either the organization could could could whether those costs are they could pass it on to the consumer.

And what we're seeing is that organization that was those costs to, in fact, end up having to make staffing decisions to to backfill those losses.

What are you?

What are you feeling right now?

What are you noticing?

We're seeing?

We're seeing K companies actually starting to close in the United States of America.

We started receiving first notice first notice of that.

We're starting to see aluminum manufacturers and can manufacture starting to raise costs are seeing that affects the smiles perrys more than the larger ones.

Right?

So if you're if you're buying anywhere between $0.10 to $0.25 per can multiply that by a billion right.

And so to the economies of scale, those large manufacturers obviously get the best price break.

So it's going to hurt the small businesses.

First small margins.

That's exactly right.

Julie, what about you?

What are you on noticing?

>> At this point, the effects have been limited, but we're anticipating that costs up.

Homes are going to start going up a lot on the National Association of Home Builders has pulled its members and and members are anticipating home price increases of up to $11,000 per home.

10,900.

Right now, the increases have been fairly small, but with the tariffs being implemented those prices are going to start going up and probably Q 3 of this year.

>> Robert Trump administration, like I said, they're arguing that this is going to promote domestic manufacturing.

Is that likely?

And when could that happen?

Or we're going to see the same thing that happened that has happened in previous administrations.

There will be an increase in the production of small sum products that are made from steel and aluminum from smelters already exist.

The minute states that are operating at half or low half capacity.

>> But that's only going mean a marginal increase in the domestic supply relative to the consequences for down stream industry.

So there will be some people that will be able to sell more steel and aluminum bit higher prices.

But there's a lot more people to consume the field and there are that produce it and what I say a lot more.

I mean, a lot lot more as we see industries across transportation.

It was we saw packaging or, you know, that the canning industry, it's across the board that's going to be affecting people will begin to see those effects pretty soon as window down the warehouses that are currently storing.

You know, as you show showed at the for opening shot wheels of aluminum.

>> Ray, is there much that small craft breweries can do to adapt?

You know, there's not a lot, you know, the small that's going to hurt the smallest businesses in this in this state and this country.

>> You know, our our our Brewers are looking at other other options for glass bottling, for example.

But >> you know, these these small breweries have set up canning lines and made huge investments on that infrastructure and they're not able to go out kind of reject or they're they're there for operation just switch it up.

Can't just fix it.

Yeah.

>> Julie City, as you know, we've already facing challenges with housing shortages, especially with regards to affordable housing.

You mentioned, you know, likely a home in pre home price increases in the future.

What's the impact you can this could have on housing in the city.

It's going to have a huge impact.

We all know that there is a major, affordable housing shortage in this country.

>> here in in Illinois and you have builders who are willing to build homes and they want to build homes, whether it's apartments, condos, townhomes, single-family homes, but pricing is going to be a major headwind and it's going to it's going to impact their willingness to Portugal's on the ground at the end of the day.

And and it's going to stop projects.

Unfortunately.

>> Robert, what do you say to the idea that the U.S. shouldn't be so reliant on other countries for steel and aluminum?

>> That's fair.

I mean, it is true that were basically down to a few smelters for aluminum steel industry has suffered over course of the past few decades.

And you could think that a small share that will be important for national security purposes.

But the defense industry consumes about 3% of us aluminum.

It's only about 5% of U.S. steel.

It's not obvious that this is the way that you would want to achieve that.

And if we cared about having a regular supply of aluminum just by aluminum using the defense, the defense contracts.

If there's other ways to achieve this.

And we've seen other administrations take those tax in the past, for example, there's a new aluminum plant the first in 40 years that was going to be opened up under the Inflation Reduction Act.

But that's just maybe going to be killed under this funding measure.

All right.

So a tough time right now that.

And that goes into effect.

So right, it's.

>> this new tariff goes into effect It's in Okay.

That's