So...we use this post to keep our customers informed on wheel, tire and wheel accessory news and product updates but sometimes it is to inform the public of issues in the industry.
As you know the tariffs on steel and aluminum are going into effect tonight at midnight. Our wheel spacers are made domestically with domestically sourced American made aluminum. All Canadian and other foreign manufacturers will be taxed 10% for exporting aluminum to the USA. I'm no economic guru but I thought the purpose was to make domestic aluminum more price attractive for end users who will then purchase domestically produced aluminum to help the domestic aluminum business and employ American workers. WRONG!
Our domestically produced aluminum suppliers are raising prices 10% to meet the foreign prices. Why? Because they can? Now they will not employ more Americans or produce any more product but will put 10% additional profits in their pocket. Was this the desired effect? I'm not 100% sure but I don't think so.
If you have a Canadian supplier that now costs 10% more you might want to change to domestic suppliers to avoid the tariff and support domestic product and workers but if the price of the domestic suppliers is the same why would you change suppliers? Ever go through the process of changing large suppliers? It is a PITA!
So now, we (Otis Inc LA) will continue to use our domestic suppliers and continue to support American companies BUT our customers will pay 10% more because of the trade policies of the current administration.
Not a political statement but just a thought and observation.
www.OtisIncLA.com
Toll Free 855.Otis.Inc (684.7462)
info@OtisIncLA.com
#tariff #wheel #spacer #wheelspacer #aluminum #trump #madeintheusa #nochineseproduct #usa
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