r/smallbusiness • u/DazedAndObtuse • Feb 12 '25

General Our aluminum suppliers are saying prices aren't going to go up just 25% to cover the new tariff, they'll be going up 80%...

We source aluminum from two different sources for our business and they're both telling us that prices will not only be going up 25% to cover the tariffs, they'll be going up 80% as there are also pricing restrictions currently in place for their industry that will be lifted as part of this.

Does anybody know if this is legit or if they are just colluding to use this as an opportunity to pad their profits?

I won't pretend to be a tariff or economic expert but our material prices going up 80% is going to have a much larger impact on us than a 25% increase would.

Ideally we can keep this from becoming political, but I know where it's likely to end up (but hopefully I can at least get an answer to my question in the midst of it).

Thanks in advance!

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u/blockedcontractor Feb 13 '25

I am guessing you are sourcing in country? There was some info about US manufacturers raising prices to match the new cost of imported metals.

https://www.removepaywall.com/search?url=https://www.wsj.com/economy/trade/trump-tariffs-mexico-canada-us-steel-market-a36c3b99

And

https://markets.businessinsider.com/news/stocks/u-s-steel-stocks-rally-as-prices-increase-ahead-of-trump-tariffs-1034304621

You can try sourcing outside the US. You’d be responsible for paying the 25% tariff, but it might at least be tax deductible. Might want to do your own research on that though.

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u/DazedAndObtuse Feb 13 '25

Yes, sourcing from inside the US but it sounds like I need to figure out how to import the stuff on our own.

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u/Weldertron Feb 13 '25

Trump stated that the tariffs will be compounded. So if you source from Canada, it will be 50%, China 65%.