Trump Steel and Aluminum Tariffs at 50% — SC Plants Gain as Spartanburg Auto Suppliers Feel the Squeeze

Published April 17, 2026 at 7:00 AM | By Nadia Montgomery, Business & Economy Reporter

The White House’s strengthened steel and aluminum tariffs — now set at 50% on imports — are producing measurable results at South Carolina manufacturing facilities while adding cost pressure for industries that rely on both domestic and imported metal inputs. The diverging effects are being felt in the Spartanburg County supply chain, where automakers, tire manufacturers, and industrial suppliers interact daily with metal pricing.

Century Aluminum’s Mt. Holly smelter in South Carolina, which had been operating at 75% capacity for years, reached 100% production in early 2026 following the tariff increases. The company added approximately 150 high-paying jobs and its CEO publicly credited the Section 232 tariffs. The facility is one of the few remaining primary aluminum smelters operating in the United States.

What the Tariffs Mean for Spartanburg’s Manufacturing Base

Spartanburg County’s industrial base includes companies that both benefit from and pay for metal tariffs. BMW’s Greer plant uses large quantities of steel and aluminum in vehicle production, and tariffs on imported materials increase production costs — costs that can affect vehicle pricing and, ultimately, plant competitiveness for future model allocations.

On the supplier side, several Spartanburg County metalworking and fabrication firms that use domestic steel or aluminum see their input cost structure impacted by the tariff-driven domestic price premium. The White House’s April 2 fact sheet noted that derivative articles substantially made of steel, aluminum, or copper now pay a flat 25% on their full value.

South Carolina’s manufacturing sector exported $38.5 billion in goods in 2025. Trade between the state and Germany alone totaled $13 billion, according to the American-German Institute. Over 270 German companies employ more than 44,000 people in South Carolina, the largest concentration of German-owned manufacturing employment in the southeastern United States.

Workers Weighing the Tradeoffs

For Spartanburg-area workers, the tariff story has two sides. Workers at domestic steel and aluminum producers benefit directly from the protected market and production increases. Workers at downstream manufacturers — auto assembly, aerospace suppliers, appliance makers — face a more complicated picture as their employers absorb higher input costs.

The White House’s 2026 Economic Report framed the One Big Beautiful Bill Act’s tax provisions as benefiting “blue-collar workers and small enterprises,” including eliminating taxes on tips. However, the same report acknowledged that residential investment declined in 2025 and that oil price pressures from the Iran conflict are a wildcard for the broader growth outlook.

What’s Happening Q&A

Q: What are the current U.S. steel and aluminum tariff rates?
A: The White House strengthened tariffs in April 2026 to 50% on steel, aluminum, and copper imports, with derivative articles substantially made of those materials paying a flat 25%.

Q: How is South Carolina’s manufacturing sector responding?
A: Century Aluminum’s Mt. Holly smelter in SC reached 100% production and added 150 jobs. Downstream manufacturers including BMW suppliers face higher metal input costs as a tradeoff.

Q: Why does this matter for Spartanburg workers?
A: Spartanburg County is one of the most export-intensive manufacturing counties in the Southeast, with BMW, Michelin, and hundreds of suppliers dependent on global trade flows that the tariff regime directly affects.

Q: What happens next?
A: BMW and other Spartanburg manufacturers have not issued public guidance on tariff impact to current production volumes. Trade negotiations between the U.S. and the European Union remain ongoing, and the outcome will significantly affect the county’s German-owned manufacturing base.