SCDOT prepares for changes in steel supply chain following Trump Tariff decision

SAVANNAH, Ga. (WTOC) - State leaders across the country are now keeping a watchful eye on funds following President Donald Trump’s decision to increase tariffs.

The South Carolina Department of Transportation is looking further into how the tax on steel imported to the United States could impact bridge and interstate projects.

President Trump increased tariffs to 25% on all steel and aluminum imports on Wednesday, believing the move would create domestic factory jobs. The move has gained support from domestic makers of those goods, but some financial experts predict consumers will feel the impacts in the next 60-90 days.

Trump said, “The tariffs are going to be throwing off a lot of money to this country and we’ve been ripped off for years by other countries.”

SCDOT Transportation Secretary Justin Powell said at last week’s Senate Transportation Committee meeting that they’ve already seen significant price increases that have started to level out.

“We’ve already seen some significant price increases and they’ve started leveling out and so we will monitor that,” said Powell. “Every month I get the report on our major inputs and we’ll continue to look at how it goes forward.”

READ MORE: Savannah businesses prepare for tariff impacts as White House grants delay for U.S. automakers.

Powell told committee members that there are already regulations in place for SCDOT to buy steel domestically but is watching how it affects the overall supply chain.

“It’s something we’ll have to keep an eye on as to whether those tariffs increase the price of steel even those that we couldn’t use that we’re required to use domestic sources, but I think it’s early to say how it’s going to play out,” he said.

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One of the projects that could be affected, even more now, is the 278 Corridor Project. It’s been years in the making to get to this next step, as a joint resolution for a new bridge plan approved by both the Town of Hilton Head and Beaufort County Council could soon be reviewed by SCDOT in the coming days.

There is a March 31 deadline in place with the state’s bank, proving they are collaborating to get a deal done and construction to begin.

There is $260 million in the budget to make that happen (if SCDOT agrees with their amendments and plans) but that was all before this tariff adjustment.

“We feel confident today that $260 is an adequate number, however, we really don’t have a defined number until we have a bid, and the longer it takes to get the bid, the longer you have more risk on numbers increasing,” said Assistant County Administrator for Infrastructure Jared Fralix at the county council meeting on March 10.