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Import tariffs and war-linked fuel costs squeeze US manufacturing business
A mobile food-truck maker said its delivery prices rose by about US$1,000 due to higher fuel costs, while import taxes on steel and aluminium were about 50 percent.
South China Morning Post Economy reports on Zion Foodtrucks in Colorado, where American-made steel and aluminium are combined with globally sourced components to convert vehicles into mobile restaurants.
The outlet says the company has struggled as US import taxes on steel and aluminium are about 50 percent, and it also points to higher fuel prices linked to the Iran war launched in February. The business owner, Appu Jacob Varghese, said the tariff and war situation has reduced the company’s activity, with competitors closing their doors.
SCMP Economy adds that the company faces stiffer competition from Mexican manufacturers with lower labour costs and cheaper Chinese steel, which it says is taking market share.
The piece frames the broader picture as mixed evidence for former President Donald Trump’s manufacturing push, citing policy churn, market instability, and structural weaknesses that it says can discourage investment and complicate supply-chain reform.