Automotive Industry Braces Itself as White House Proposes Tariffs on Aluminum, Steel

President Donald Trump announced plans this week for tariffs on steel and aluminum imports, stirring more concern from an already anxious automotive supply industry, according to Kelley Blue Book.

The announcement was made this past Sunday that a 25% tariff would be enforced on all steel and aluminum entering the U.S. A White House official has said these tariffs will take effect March 12, reported CBS News.

This, in addition to potential tariffs being placed on Mexico and Canada, is causing automakers and the automotive parts industry to become concerned, with the recently announced tariffs expected to bring additional costs to manufacturers.

In a statement this week from the Auto Care Association, President and CEO Bill Hanvey reiterated the dangers surrounding the increasing number of tariffs being proposed.

“The expansion of these tariffs will have far-reaching consequences beyond the steel and aluminum industries. Vehicle parts, along with countless other downstream industries, depend on a stable supply of raw material to create and provide the countless vehicles parts that keep our families, businesses and economy running,” said Hanvey. “These industries are a critical part of not only the American transportation industry, but also U.S. manufacturing as a whole. Many specialty steel products used in our industry are not readily available from domestic sources, making access to global supply chains essential. U.S. manufacturers are at a competitive disadvantage, making it more difficult to compete in both domestic and international markets.”