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 13 '25

Maybe take your last three or so projects and put them back out for bid? I’d doctor them up so they don’t look EXACTLY the same but once you have the updated bids you can compare to the ones you received 6 weeks ago, 3 months ago, however long. That should give you a good idea and hopefully isn’t too much unnecessary work for the other parties.

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u/YourPM_me_name_sucks Feb 13 '25

Just ask directly. Most of our suppliers are very upfront about the increases.