Tariffs to Limit Sources for Auto Parts

Aug. 17, 2018
Businesses affected by the auto parts industry, including automotive repair shops, could scramble to cope with President Donald Trump’s tariffs on imported Chinese materials and goods, especially as those tariffs could limit where auto parts retailers can source their parts.

August 17, 2018—Businesses affected by the auto parts industry, including automotive repair shops, could scramble to cope with President Donald Trump’s tariffs on imported Chinese materials and goods, reported Transport Topics, especially as those tariffs could limit where auto parts retailers can source their parts.

Steep levies already have boosted costs of some products made with steel and aluminum, and more duties could affect hundreds of other items these companies develop, make and sell—including tires and rearview mirrors, windshields and windshield wipers.

Brian Cohn, president of Jupiter, Fla.-based Multi Parts, said the company’s typical flow of orders has slowed, and higher prices on materials have led him to stop hiring new workers.

Multi Parts’ facilities in Shanghai, Hong Kong and Belarus manufacture components including brake and wheel cylinders, wheel hubs and valve-timing solenoids. Customers include parts distributors and other manufacturers of auto-repair products.

While the tariff threat is broad, it actually may affect less than 15 percent of retailers’ inventory, according to Wedbush Securities Inc. analyst Seth Basham: Auto parts stores source 50-60 percent of their products from China, but only 20-25 percent of these are included in the latest round of tariffs, he said. These duties cover a wide variety of imports with a total value of more than $200 billion and won’t take effect until after a comment period ends Sept. 6.

Sponsored Recommendations

Valvoline Partner Solutions

We arm you with products that build trust, tools that unlock productivity, and training that drives business performance, so you feel confident in where your...

Grow the business you know

Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.

Solutions that drive results

Connect with Valvoline experts to increase operational efficiency and customer loyalty – from Valvoline-funded promotions to hands-on training, we’re here to...

Free Resources for Shops Like Yours

View insights, research and solutions curated specifically for shops like yours.