Based on Episode 166 of the Business by the Numbers Podcast, Click here to listen!
If your parts prices feel like they’ve jumped overnight, you’re not imagining it. The U.S. recently rolled out steep new tariffs, especially on goods from China. That means every rotor, filter, or belt you order that’s made overseas could now cost double. And the ripple effects won’t stop there.
Here’s what you need to know:
1. Parts prices are going up—fast.
If a part you used to get for $100 now costs $200, and you’re still marking it up by 50%, you’re charging your customer $400 instead of $200. That’s more profit on paper, but can your market handle it? Expect customer pushback, lower close rates, and more pricing pressure.
2. Tariffs aren’t new—but this scale is.
Tariffs used to be the only way the U.S. funded itself—before income taxes even existed. We’re talking pre-1913. But lately, they’ve become a political and economic power play to push other countries into fairer trade deals.
3. This could crush small towns.
If repair shops leave towns because of costs, it doesn’t stop there. Local welders, plumbers, electricians—all of it follows. Then the money spent in-town disappears too. And once those jobs are gone, it’s nearly impossible to bring them back.
4. You can’t count on “Made in America.”
Even “domestic” parts often use foreign components. So if you’re assuming you’ll dodge the price hikes—don’t. Globalized supply chains mean everyone feels the squeeze.
5. It could mean a recession—or a reckoning.
Raising prices when inflation is already high? It’s risky. If this drags out, we could see even tighter margins, layoffs, and shop closures. If it works, we might see more U.S. manufacturing—but that’ll take years.
Bottom line:
Tariffs might feel abstract, but the impact on your shop is very real. This isn’t the time to ignore your pricing strategy—or your sourcing process. Stay alert. Educate your team. And don’t assume your customers will just “get it.”
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