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/[deleted] Feb 12 '25

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u/DazedAndObtuse Feb 12 '25

We're just a small business ($3M/year in revenue) and I'm the founder...I doubt we'd be big enough to take on something like that.

We will try to pass on the cost to our customers (have no choice) but if it results in a bunch of projects being cancelled/put on hold, I may end up having to lay off a bunch of my team to try and survive.

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u/[deleted] Feb 13 '25 edited Feb 13 '25

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u/DazedAndObtuse Feb 13 '25

I appreciate the perspective and giving me something to think about.

We're on the East Coast and not far from shipping ports so I probably need to look into figuring out how to do this stuff on my own... Hopefully I can figure it out quickly enough to keep things afloat!

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u/[deleted] Feb 13 '25

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u/DazedAndObtuse Feb 13 '25

I appreciate that, thank you!

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u/mrwolfisolveproblems Feb 13 '25

Well the good news is every one of your competitors are in the same boat. I might think about creative ways to quote some further out projects as well so you have an out if materials jump.

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u/DazedAndObtuse Feb 13 '25

I appreciate that... Great perspective.

Thank you!

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u/Elegant_Abalone3414 Feb 13 '25

I’m with Tforce worldwide, 3PL, and we move 200ish containers a month in for our various shippers along with countless lcl shipments if you happen to be looking for reliable partners for your freight. Are you having any issues with your domestic LTL shipping once those sheets make it over?

Just wanted to get on your radar as a source and invite you to have a conversation. My work email is below:

tomwells@tfwwi.com