RICHMOND, Va. — New tariffs on steel and aluminum are impacting small businesses and nonprofits that rely on these materials, forcing them to pay more for supplies and maintenance.
Build RVA, a nonprofit maker space in Richmond, is feeling the pinch as prices rise for the raw materials their members use for creative projects.
"We try to make making as accessible as possible," said Josh Stolberg, Build RVA co-president of strategy.
Stolberg, who creates drink coasters from recycled aluminum cans, says the nonprofit is already seeing costs increase.
"We have asked local suppliers for scraps because we are a nonprofit and it's been more difficult to get drops or scraps for free and now we're paying scrap rate and even scrap rate has gone up," Stolberg said.
The situation is expected to worsen with the latest round of tariffs from the Trump administration, which adds an additional 25% on steel and aluminum imports.
Build RVA works with various materials including scrap wood, metal pieces, and acrylic for laser cutting and woodworking projects. But the impact goes beyond just raw materials.
"It hits us most in our maintenance replacing parts that are worn out and maintenance obviously is crucial to keeping our facility running so we have to look at other places or we can be more stingy," Stolberg said.
Repairs for both specialized and simple machines like table saws are cutting into the nonprofit's limited budget.
Jeff Smith, a supply chain expert with Virginia Commonwealth University, understands the concept behind the tariffs but questions the approach.
"It's a multitiered impact. Just by putting blanket tariffs on something might not be the best solution," Smith said.
Smith says American consumers should expect prices to increase across multiple industries.
"Automotive, housing, it goes into construction and goes into food processing. It goes so far and any increase in that base material permeates outward," Smith said.
His assessment points to a broader concern about the tariffs' wide-ranging effects.
"Instead of being very surgical about this and taking a tailored approach we're sort of applying this across the board and it's hurting multiple industries," Smith said.
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