The revised Section 232 proclamation now applies tariffs to the full customs value of steel, aluminum, and copper — not just the metal content. For any metal fab acquisition with import exposure, the cost model in your CIM is already outdated. And with the ISM Prices Index at 84.6%, your margin assumption is under water before you close.
The ISM Manufacturing PMI came in at 52.7 for April. Fourth consecutive month of expansion. The headlines will celebrate this. I'd like you to sit with a different number: manufacturing employment has been contracting for 31 consecutive months.
The sector is expanding. It's just doing it with fewer people, higher prices, and more geopolitical anxiety than anyone priced into a deal in January. The Prices Index hit 84.6% — highest since April 2022. Steel, aluminum, resins, diesel. All up. And the Section 232 expansion that took effect April 6th...
Valuation Range: 4.0x–6.5x EBITDA for $1M–$10M EBITDA businesses. Anything above 6x needs a real story — not just "strong customer relationships."
Section 232 Impact: Full customs value now taxed on steel and aluminum imports as of April 6. If the shop buys imported cut-to-length or structural components, remodel the inputs before LOI...
"The CIM was written before April 2nd. The tariff assumption inside it is already wrong."
Before April 6th, Section 232 tariffs on derivative products applied only to the metal content value. After April 6th, it's the full customs value. If your acquisition target imports steel assemblies or cut components, the duty exposure just changed...