Car repairs may become more costly for consumers as businesses throughout the auto-parts industry plan to raise prices because of U.S. tariffs on imported steel and aluminum.
Springfield-based O’Reilly Automotive Inc., among others companies around the country, said it plans to raise prices to offset costs from the tariffs.
The company has seen a couple of its suppliers add “fractional” costs from the tariffs onto their charges, and a few more will do so early in the fourth quarter, according to Chief Executive Officer Greg Johnson. So far, O’Reilly has been able to pass that cost along to customers.
Businesses ranging from local mechanic shops to components manufacturers are contemplating their next steps, considering that more duties could affect hundreds of other items, such as tires, rear-view mirrors, windshields and windshield wipers.
General Motors Co., which has a plant in Kansas City, is also among dozens of businesses that have said they already see or anticipate higher prices driving up manufacturing costs or reducing earnings.
Emporia, Kansas-based Hopkins Manufacturing Corp. imports many goods from China, and prices have been driven up on about 350 items made with steel and aluminum, according to Chief Executive Officer Brad Kraft.
Increased prices may cause vehicle owners to delay repairs, leading to decreased safety, says Brian Cohn, president of Jupiter, Florida-based Multi Parts.
Read more: Bloomberg