Trump’s tariffs drive up auto steel and aluminum costs

The 25% steel and aluminum tariffs mark a turning point for the US auto industry, driving up costs and reshaping supply chains. Adapting to these changes is crucial for manufacturers.

New steel and aluminum tariffs, scheduled to take effect March 12, represent a significant shift in US trade policy. The tariffs were announced by President Trump on Feb. 10, and they expand the 2018 measures imposed under Section 232 aiming to protect domestic industries. However, the tariffs are expected to increase costs for the automotive sector, which would ultimately lead to higher consumer prices. Additionally, the potential for retaliatory trade actions introduces further uncertainty and poses challenges to global supply chains. As industries adjust, strategic sourcing and production shifts will be essential for mitigating the impact.