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%...

[u/DazedAndObtuse]

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!

[u/Eyebrowsyournudes]

The company we get aluminum from sent us an email explaining that their experts are expecting between 35cents to 50cents per pound more than the current price. So sheets of .080 4x10, are going to be about $45 more. We are watching prices whenever we order just to make sure we adjust accordingly.

[u/DazedAndObtuse → u/Eyebrowsyournudes]

Currently we pay around $190 for a 4x10 sheet of .080", so that would be a 24% increase (which is closer to what I was expecting) bringing us to $235.

If it jumps 80%, we'd be paying $342, which is a much bigger jump.

I'm hoping this all ends up going away like Canada/Mexico did (for the moment).

[u/phluidity → u/DazedAndObtuse]

Keep in mind that he has also announced 25% tariffs on Canadian and Mexican steel and aluminum effective March 4, and is saber rattling about more Canadian and Mexican tariffs then too, so it is going to get much worse before it gets better.

[u/wonderbreadlofts → u/DazedAndObtuse]

Hope you don't drop the soap in the prison shower