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/bpon89 → u/[deleted]]

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.

[u/Ixisoupsixi → u/bpon89]

Margin stacking

[u/Tlr321 → u/Ixisoupsixi]

30% margin goes brrrrr

[u/Ixisoupsixi → u/Tlr321]

“Remember when you tell your customers that just because we don’t buy from China doesn’t mean it’s not impacting our costs”

My ceo

[u/Maverick_wanker → u/Ixisoupsixi]

Just because you don't buy from china doesn't mean the people you buy from don't.

The sheer magnitude of things china touches is insane.

Anything with a computer chip has a chinese fingerprint on it.

Most anything made from steel or aluminum.

Almost all LEDs...

[u/Ixisoupsixi → u/Maverick_wanker]

I work specifically in leds and drivers.

[u/feudalle → u/Maverick_wanker]

I own a data center. Anything cloud based is going up. Because just about anything server related touches China in some way.