President Donald Trump announced last week that the administration would follow through with 25 percent tariffs on imported steel and 10 percent on imported aluminum. The tariffs went into effect on Friday.
Thor Industries said Thursday that tariffs had led to more expensive steel and aluminum prices — and dented the company’s profit margin.
This story by Nathaniel Meyersohn originally appeared in CNN Money.
“We are experiencing inflationary price increases … due in large part to the headwinds created by the announcement and implementation of the steel and aluminum tariffs,” said CEO Bob Martin.
Steel prices are up 28 percent since the beginning of 2018 and average aluminum prices are 19percenthigher than last year, according to Moody’s analyst Carol Cowan. Uncertainty about trade restrictions have contributed to the price swings.
The company did not say what steps it would take to respond to tariff pressures on Thursday.
RV companies have been dealing with higher steel and aluminum prices for months, so tariffs shouldn’t cause too much damage, said Gerrick Johnson, an analyst at BMO Capital Markets.
Johnson does not expect the tariffs to force layoffs, but he warned that the manufacturers may try to raise prices to offset the higher input costs.
That means drivers might pay a little more for a new RV.
