New tariffs on steel and aluminum enacted by the Trump Administration on March 12 leave automotive manufacturers and parts suppliers facing increased costs.
President Trump has expanded the 25% tariff on steel to apply without exceptions and increased aluminum tariffs from 10% to 25%.
The Coalition of American Metal Manufacturers and Users expressed concern, stating, "The expanded tariffs on steel and aluminum place U.S. manufacturers at a tremendous disadvantage—including those who do not import these raw materials. The reality is that the U.S. does not produce enough steel or aluminum to meet domestic demand, and new production facilities cannot be built instantly."
Even companies sourcing metals domestically will feel the impact. Ford CEO Jim Farley noted, "Our suppliers have international sources for aluminum and steel. So that price will come through. We'll have to deal with it."
Attorney Ann-Marie Uetz, who represents auto suppliers, explained that automakers often have no choice but to absorb some of these costs, saying, "The (automakers) can't afford for all their suppliers to go out of business."
The industry is also contending with recently imposed tariffs on Canada and Mexico, which have been temporarily suspended until early April for most vehicles and parts.
"The suppliers I am talking to right now are so hyper-focused on tariffs and trade," said Uetz. "They're absolutely hyper-focused on these costs right now, until they get some certainty."
