U.S. Tariffs on Steel Imports Seen Raising Equipment Costs

President Bush’s decision to impose tariffs ranging from 8% to 30% on certain steel imports for a period of at least three years is likely to raise the cost of manufacturing truck equipment, but it remains to be seen how much of the cost increase will be passed along to buyers.

ArvinMeritor Inc., which buys $500 million worth of steel annually for its axles, door systems and ride control products, said while only $2 million to $3 million of its purchases are directly affected by tariffs, the company expects to see an increase in prices when current domestic steel supply contracts expire.

“We’re watching to see what happens,” said D. Mike Pennington, senior director of corporate communications for the Troy, Mich.-based company. “We do expect domestic producers to raise prices.”

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