A new round of tariffs was announced by President Donald Trump this week, calling for 25 percent tariffs on steel and aluminum imports.
The White House said the tariffs will boost the domestic steel and aluminum industry, which it claims has seen a dip in production in the past two years.
The move was applauded by the Steel Manufacturers Association and the Aluminum Association.
“The Steel Manufacturers Association applauds President Trump for putting the American steel industry and its workers first by imposing a 25 percent tariff on all steel imports. President Trump understands that America’s steel industry is the backbone of our economy. A thriving domestic steel industry is critical to U.S. national, energy and economic security,” said SMA President Philip K. Bell.
Charles Johnson, President and CEO of the Aluminum Association, said, “We appreciate President Trump’s continued focus on strong trade actions to support the aluminum industry in the United States.”
There is expected to be an impact on the used vehicle industry, with increased prices on parts.
“The implications of these tariffs are far-reaching. They are expected to increase the cost of imported steel and aluminum, which could lead to higher production costs for manufacturers and potentially result in increased prices for consumers,” said Ed Salamy, Executive Director of the Automotive Body Parts Association. “This price impact would not only affect aftermarket collision repair parts but also OEM parts, both of which rely heavily on these materials sourced from outside of the U.S. As a result, vehicle repair costs are likely to rise, contributing to an increase in total losses declared by insurers — ultimately burdening consumers with higher premiums and replacement costs.”
The tariffs on steel and aluminum imports follows the 10 percent tariff placed on imports from China. The Trump administration paused plans implement tariffs up to 25 percent on goods from Canada and Mexico until March.
NIADA continues to monitor developments and speak with its lobby firm in Washington, D.C., about the potential impact on dealers.
