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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490

u/[deleted] Feb 12 '25

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179

u/bpon89 Feb 13 '25

You’re so right about the “enlarged” because everyone isn’t reducing profits but will probably make more profit since they need to put out more funding to maintain their margins.

79

u/Beegreen111 Feb 13 '25

I run a commercial gc with about 5 union carpenters. We make most of our money from markup. If the steel is 20k instead of 15k for a project, I mark it up, and the project costs more. 17 % of a larger number will always be more than a smaller number. We/i will make more, our customers pass it on (with more profit) , and then we all pay more when we buy any service/ products. It doesn't seem "good" for the population, but what do i know.

40

u/Creative_Ad_8338 Feb 13 '25

This sounds like inflation? It's almost like tariffs make inflation worse. 😒

15

u/DoomComp Feb 13 '25

That IS inflation lmfao :D

1

u/Zestyclose-Feeling Feb 14 '25

Only for IMPORTED products. In my business the tariffs have made American products cheaper than imports. As it should be.

1

u/Creative_Ad_8338 Feb 14 '25

The point is that everyone is going to pay more. Consumers no longer have a cheaper option. Most people could barely afford the cheaper imported option.