Two Industries Which Would Be Better-off if Modernized

Trump administration’s tariffs on U.S. imports are passing through the supply chains and ending up impacting the consumers wallet in the form of increasing prices. There is no way to avoid these increases in the US. These are two industries which are disproportionately worse-off, I am familiar with due to my experience in manufacturing. They are both heavily dependent on imports.

If the costs have not hit prices yet they soon will. It would also not surprise if the industry alreaduy increased prices (prematurely) in preparation of the cost increases on imports.

Automakers / Autoparts

The automotive industry has sourced much of its components overseas as they avoid costs which are prevalent in the United States. Much of it involves the cost of overhead and not so much direct labor. Things like Heathcare is often provided by other countries rather than private industry. That being one example.

Motor vehicle prices are expected to rise 12.4% in the short-run, the equivalent of an additional $6,000 to the price of an average 2024 new car, according to TBL.

Reuters’ tracker identified 18 companies in the “Automotive & Transportation” sector that withdrew or cut their guidance in the first quarter, and 14 that took a financial hit. The U.S. companies in this sector that took the most tariff-related actions (such as making supply chain changes or issuing profit margin warnings) were Tesla and General Motors. 

The auto industry has been hit hard ever since President Donald Trump issued a 25% tariff on imports of vehicles and auto parts back in March (although some countries have also been able to strike deals to reduce those levies). This is only part of the story. The industry is also affected by a 50% tariff on steel and aluminum, which affects various auto parts, like exhaust systems, the electrical steel needed for electric vehicles, and components for buses. The Commerce Department also said on September 16 that it will consider requests from industry to impose additional tariffs on imported auto parts in the coming weeks based on “national security grounds.”

Steel & Aluminum Using Industries

Much of the process of steel and aluminum is done using less modern methods and machinery. In comparison to foreign made steel and aluminum, the costs are greater in the US even when transportation is included. The nation would be better served if the government would finance new techniques and machinery to manufacture steel and aluminum. Today’s manufacturing sources in the US ate likely obsolete with the process being more costly.

The White House doubled steel and aluminum import tariffs to 50% on June 4, 2025. Metal prices are expected to soar 41% in the short-run, according to TBL. This means a large range of items become more expensive to produce . . . from cars and air conditioning units to beverage cans and drilling pipes. But some of the most metal-intensive industries include aerospace (aircraft and spacecraft makers), oilfield drilling, and commercial kitchen equipment.

The administration has introduced a number of measures to amplify the shock of this 50% tariff. For instance, it has prevented importers from seeking any new product-specific exclusions. It has also tightened “melted and poured” rules, so that for a steel product to be considered a product of the U.S., Mexico, or Canada, and thus avoid the tariff, it must have been originally melted and then poured into a solid form (such as a slab or billet) within one of these three countries. Lastly, in August, the Commerce Department also expanded the coverage of the tariff to more downstream parts (like bulldozer blades and vehicle components) when it announced the addition of 407 product categories to the list of “derivative” products subject to the levy.

Fix the main issue rather than install short term solutions which will not last long. Industry will still be left with the same issues after the tariffs are gone. Wriong approach . . .

The 4 industries worst hit by tariffs so far, Quartz