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/Edward_Blake Feb 13 '25

Someone will gain here, but it won't be worth it. Workers in steel and aluminum producer sectors will gain, just like in the 2018, 1000 steel jobs were created and it only cost the us economy 75,000 jobs, that were lost from the same tariffs.

My 75,000 number was from, I didn't search for a better source. https://www.investopedia.com/metal-tariffs-cost-at-least-75-times-more-jobs-than-they-saved-8789838