TAG Industrial Watch: June 7, 2025
The entire purpose of President Trump’s trade war is to bring manufacturing back to the U.S. However, the doubling of steel and aluminum tariffs to 50% this past week may not only do little to reshore manufacturing but further hamper domestic production. Since recovering from the pandemic lockdowns in the spring of 2022, manufacturing has widely been considered in recession, and the tariffs stand to compound the industry’s problems. While the president’s steel and aluminum tariffs may benefit large corporations like Cleveland-Cliffs and Alcoa, they will significantly increase the cost of production for the countless manufacturers and construction companies in the U.S. that depend on these metals. All things being equal, higher steel and aluminum prices result in less demand and, consequently, less production. Even if these tariffs remain in place through Trump’s final tenure in office, there is little guarantee that they will continue under the next administration. In other words, steel and aluminum producers have little incentive to make the intensive capital and timely investments to expand capacity.
Despite the uncertainty of Trump’s trade policies, the one thing that is becoming clear to manufacturers is that the industry will continue to face obstacles for the foreseeable future. For industrial owner-users that depend on steel and aluminum products for production, the tariffs present a good opportunity to take advantage of historically high property values while they last. By conducting a sale-leaseback with a right of first refusal, owner-users can create a rainy-day savings fund that can be used to float or even expand their business, while positioning themselves to buy back their property in the future.
I N D U S T R I A L N E W S
Trump’s 50% Tariffs On Imported
Steel, Aluminum Go Into Effect
FreightWaves – June 4, 2025
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Bonded Warehouse Conversions Surge
Amid Unpredictable Trade Policies
GlobeSt.com – May 22, 2025
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Private Sector Hiring Rose By Just 37,000 In May,
The Lowest In More Than Two Years, ADP Says
CNBC – June 4, 2025
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Trump Says He Plans To Double
Steel, Aluminum Tariffs To 50%
Reuters.com – May 31, 2025
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Trump Tariffs Live Updates: Trump, Xi Jinping Speak At Last
As US And China Lean On Key Exports In Trade Fight
Yahoo!Finance – June 4, 2025
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R E G I O N A L N E W S
TradeLane Properties Buys Alsip
Manufacturing Facilities
Connect CRE – May 28, 2025
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Constellation Real Estate Partners Building 286,700-
Square-Foot Industrial Building In Grand Prairie
REjournals – June 4, 2025
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TCC Breaks Ground On 2.7 MSF Industrial
Project At DFW International Airport
REBusiness – May 13, 2025
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The DFW Deal Sheet: 287K SF Spec Industrial
Building Breaks Ground In Grand Prairie
Bisnow – June 2, 2025
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Darwin Investment Lands $100M
Refi For Industrial Portfolio
Commercial Property Executive – May 29, 2025
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