Automakers brace for higher costs as steel and aluminum tariffs kick in

Automotive and Transportation Automotive and Transportation

Thu, March 13, 2025

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Automakers brace for higher costs as steel and aluminum tariffs kick in

^{Published on 2025-03-12 17:21:31 - KJZZ}

Tariffs on steel and aluminum are increasing to 25%
not the 50% that President Trump had recently threatened, but high enough to be a headache for automakers.

The article from NPR, published on March 12, 2025, discusses the impact of new tariffs on steel and aluminum imports on the U.S. automotive industry. These tariffs, which were recently implemented, are expected to increase production costs for automakers. The article highlights that while the tariffs aim to protect domestic steel and aluminum producers, they could lead to higher prices for vehicles, potentially affecting consumer demand. Automakers are now facing the challenge of either absorbing these costs, which would reduce their profit margins, or passing them onto consumers, which might dampen sales. Additionally, there are concerns about potential retaliatory tariffs from other countries, which could further complicate global supply chains and trade relations. The piece also notes that some car manufacturers are exploring alternative materials or redesigning vehicles to mitigate the cost increases, while others are lobbying for exemptions or relief from these tariffs.

Read the Full KJZZ Article at:
[ https://www.kjzz.org/npr-top-stories/2025-03-12/automakers-brace-for-higher-costs-as-steel-and-aluminum-tariffs-kick-in ]

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