>> We've had massive tax cuts, and I mean massive. We've had tremendous success from the company standpoint.>> President Trump boasting about what he sees as the impact of his $1.5 trillion tax cut. But talk to small business leaders and you'll hear something different. There's no hiring or investment boom going on, says Reuters manufacturing reporter, Ragesh Singh.
>> I've spoke to more than a dozen manufacturers and they're all about it. And the unanimous view is that whatever the euphoria that was generated by the tax reforms, that has been evaporated by these tariffs.>> These CEOs told Reuters the 25% tariff on steel, and 10% on aluminum have resulted in a significant spike in metal prices, regardless of whether the raw material is imported or not.
And that's not all, American steel and aluminum producers can't keep up with the surging demands for domestic materials as companies try to avoid the penalty on imports. But that shortage means manufacturers can't get what they need to complete orders, deliver to customers and ultimately get paid. Throw in confusion after tariffs were postponed against Canada, the European Union, and Mexico until June 1st, and manufacturers are forced to control the only thing they can, labor costs.
Those CEOs who spoke to Reuters saying, they won't be hiring any time soon.