DE PERE (NBC 26) — Tariffs from both the U.S. and China took effect this week and local businesses the businesses say whether its their auto parts or raw materials, consumers may feel the sting.
- (Feb. 10) President Trump signed proclamations to restore a 25% tariff on steel and elevate the tariff to 25% on aluminum.
- That same day, China 15% tariff on U.S. imports took effect in response to a U.S. imposed 10% tariffs on Chinese goods.
- Recent tariff activity has local businesses such as Auto Aces, Green Bay Drop Forge preparing for its impact.
(The following is a transcription of the full broadcast story)
"If it goes up, then it goes up across the board for everybody," Bill Zirbel, service manager at Auto Aces De Pere, said.
Zirbel has been in the automotive industry for about 20 years. He's said he has seen prices fluctuate over the years.
"Even just a few years ago from COVID-19, prices went up on supply chain and things, so all we could do is just deal with it as it came, everything went up across the board then," Zirbel said.
On Monday, President Trump signed a proclamation to restore a 25% tariff on steel and aluminum.
That same day, China's 15% tariff on U.S. imports took effect. That came after President Trump imposed a 10% tariff on Chinese imports.
Zirbel said the back and forth between the U.S. and China could hurt them as Auto Aces does order tools and materials from China.
"Sometimes there's a China-made option that's a less expensive option, depending on what the customer wants," Zirbel said.
At Green Bay Drop Forge, COO Hector Ibarra said the forging company is finding ways to prosper amid uncertainty.
"What we're trying to do is, at the same time that some of these tariffs come in, we're trying to see how can become more efficient, to try not to pass some of those potential extra costs to our customers," Ibarra said.
Ibarra said staying competitive means having an innovative, collaborative approach and he said they're already making calls with customers on how to make that happen.
"What we need to do, in some cases, is work with them," Ibarra said. "Can we redesign this part where it's easier to manufacture, so we can offset some of the costs. Our goal is to not just sit down and not do anything. I think this is for all of us to get smarter, work hard and just remain competitive."
Local businesses tell me they're also aware of an additional potential hit, after President Trump's decision to place 25% tariffs on Mexico and Canada were paused until March.
