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When President Donald Trump implemented tariffs on imported steel and aluminum in March, things changed suddenly for Gretchen Mohen’s two companies.

For Lehigh Valley Plastics in Bethlehem Township, the tariffs presented an opportunity.

Mohen, the president of the company that makes plastic machine parts, began urging customers to use plastic instead of steel to make parts they need, such as a sheave — or grooved wheel — that you’d find in a pulley system for a crane.

But for S&W Metal Products, a sheet metal fabricator in Colebrookdale Township, Berks County, the price of materials has ratcheted up 10 to 20 percent.

Mohen, who is also president of S&W, said she buys domestic steel to make into firefighting tanks, shelving units for the military and truck parts, but even U.S. companies have jacked up their price.

“It started more as complete instability in pricing, then started manifesting in increasing,” she said. “I think because it’s still very confusing, it’s chaotic.”

Trump campaigned on a pledge to rewrite trade agreements and crack down on China, Mexico and other countries. He blames what he calls their abusive trade policies for America’s persistent trade deficits — $566 billion last year. By imposing tariffs, he is turning his campaign rhetoric into action.

As he brought his tough stance Friday to the seven-nation summit in Canada, businesses in the Lehigh Valley and region said they are already feeling the squeeze from his actions.

They’re passing along the cost of those tariffs to consumers or being forced to make tough decisions on how to move forward.

Martin Payton III, president of Precision Metal Services Inc. in Montgomery Township, estimated he’s already paid $4 million in tariffs since the measures went into effect March 23.

He said he does about $100 million a year in sales, which adds up to about $25 million in tariffs.

His company buys raw materials from China, Taiwan and Sweden to make stainless steel wire rod, which he sells to customers who make products such as screws, fasteners, hose clamps and muffler hangers.

So far he’s passed the increase on to his customers, but he doesn’t think the model is sustainable.

Not everyone views the tariffs as a negative. Tony Iannelli, the president and CEO of the Greater Lehigh Valley Chamber of Commerce, said he thinks the tariffs are just the first phase of negotiations, which will involve saber-rattling and ultimately a more level playing field that benefits everyone.

“It’s a short-term pain for some, but I do think it’ll be a long-term gain,” he said.

He acknowledged that other countries would likely impose retaliatory tariffs, but thinks that by the time negotiations conclude, everything will work out.

“In the end, everyone’s going to need to be flexible and that will help the global economy across the board,” Iannelli said. “Do I think we’re dug in and do I think the president should be dug in and not move on this? Absolutely not. Do I think this is the beginning stages of a global shake up to tariffs? I think so.

“Am I optimistic cooler heads will prevail? I am, and I think we’ll get maybe something that’s more fair, will create more jobs, and industry growth,” he said.

That’s not how John F. Malloy, chairman, president and CEO of Victaulic Inc., the Forks Township manufacturer of mechanical pipe-joining systems, sees the tariffs.

The negative consequences associated with these types of protective measures have been well demonstrated throughout history, he said. The former economics professor believes the Smoot-Hawley tariffs of the 1930s prolonged the Great Depression and repeatedly stymied economic progress in developing countries during the second half of the 20th century.

Malloy fears that using national security to justify these tariffs only opens the door for other countries to follow suit. Tariffs may benefit some domestic steel and aluminum producers in the short term, but they will ultimately disrupt the U.S. economy and lower the ability of companies like Victaulic to compete globally, he said.

“Victaulic exports to more than 120 countries around the world,” he said. “Initiating a trade war … could well be very detrimental to our business, our employees and the communities in which we work.”

Sussex Wire of Palmer Township uses cold-forming technology to design and manufacture miniature metal parts used in medical devices, specialty electronics applications and automobiles, among other things. The company sources some of its raw materials from international producers.

Timothy Kardish, president and CEO, said he understands the desire to create a level playing field. But he said applying tariffs to low-value-added raw materials is misguided because it hurts the bottom line.

“You’re potentially creating a disadvantage for companies here who utilize those raw materials to bring higher-skilled labor jobs to the U.S.,” Kardish said.

Ampal Inc. of Lower Towamensing Township, Carbon County, also is feeling the consequences of Trump’s tariffs.

Ampal is a subsidiary of U.S. Metal Powders Inc., the largest producer of aluminum powder in the country.

Aluminum powder is essential to additive manufacturing that relies on 3D printing, and it is also in high demand for lighter-weight automobile parts. The company, which employs 40, is about to expand its Carbon facility, President Louise Ramsey Thomas said.

Ampal buys alminum raw materials from Canada. The implementation of the tariffs has created price uncertainty, which has made strategic planning challenging, Thomas said.

“We have to charge our customers at least 10 percent more, and that makes our product less competitive against foreign competitors.” Thomas said.

Increases in steel and aluminum prices are also tapping taxpayers’ wallets.

The Allentown School District said the cost of its new elementary school at 12th and Gordon streets will go up $3.3 million to $42.5 million. Tariffs on steel and aluminum were cited as among the drivers.

Arif Fazil, the president of Bethlehem’s D’Huy Engineering, said steel and aluminum are used throughout school building projects.

Not only do building projects often rely on structural steel columns with girders, but walls can use steel studs, commercial windows and sometimes doors are made of aluminum, and even the ductwork in HVAC systems is made of steel.

Fazil said recently he was told to lock in a color for windows — and thus the price — for an Upper Perkiomen Middle School project or else face a potential $70,000 increase in material cost.

D’Huy is also working to build a new Cheston Elementary School in Easton. The company is trying to reduce the amount of steel used in the project by relying on load-bearing masonry to support the floors and roof instead of steel columns. The only downside to using the masonry walls is they take longer to build than the steel columns.

“Those are some of the strategies that we’ve been trying to incorporate when possible into our projects to try to offset any potential cost impact because we don’t know exactly what it is,” Fazil said.

He said he has to buy U.S.-made steel for public projects, and now more companies are trying to buy it too.

“We need the same amount,” he said. “Will we produce more of it, or will prices go up enough, people need less of it?”

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