What President Trump Tariffs Mean For Car Part Prices

The Impact of New Tariffs on Car Enthusiasts: What You Need to Know

In recent weeks, the United States has introduced significant changes to its trade policies, specifically targeting imported aluminum and steel. These tariffs are already stirring up conversations, especially among car enthusiasts who rely on affordable aftermarket parts and materials for their builds. At MartiniWorks, we know how much this matters to you, so let’s break down what’s happening and what it could mean for your next mod.

What Are the New Tariffs?

On February 10, 2025, President Trump announced a 25% tariff on all imported steel and aluminum. This includes countries that previously had exemptions, such as the EU, UK, and Japan. Additionally, on February 4, 2025, the administration implemented an extra 10% tariff on raw aluminum from China, invoking the International Emergency Economic Powers Act (IEEPA). Combined, certain imports from China could now face a 35% tariff when they enter the U.S.

These measures are part of a broader effort to address national security concerns and reduce reliance on foreign materials, but they come with significant ripple effects—especially for industries like automotive and aftermarket parts.

What Does This Mean for Car Parts?

The impact depends on whether the part is classified as raw material or finished goods:

1. Raw Materials (e.g., aluminum ingots, sheets, or coils):
   • These are directly impacted by the tariffs, particularly under Chapter 76 of the Harmonized Tariff Schedule (HTS), which covers raw aluminum articles.
   • Any company sourcing these materials globally will see higher costs, especially if their supply chain relies on China.

1. Finished Goods (e.g., wheels, intake pipes, or exhaust systems):
   • Finished goods generally fall under Chapter 87 (vehicle parts), which means they’re currently exempt from the raw material tariffs.
   • However, the new tariffs leave room for “derivative products” to be added later. If finished goods like wheels or intake pipes are reclassified, they could face a 25% tariff too.

Winners and Losers in the Aftermarket Industry

Trade wars aren’t new. In 2018, a smaller 10% aluminum tariff disrupted industries in similar ways, and many of the lessons from then apply now. Here’s what we’ve seen:

Brands That Could Thrive

• Domestic Manufacturers: Companies like Forgeline and American Racing that produce wheels entirely in the U.S. will avoid tariff-related cost increases as long as the raw material was also purchased in the United States.
• Taiwan-Based Brands: Brands like Konig and Stage Wheels, which manufacture in Taiwan, are better positioned since Taiwan isn’t directly affected by these tariffs.

Brands That Will Struggle

• Chinese Manufacturers: Companies like XXR and other budget-friendly wheel brands will likely face price increases due to the combined effect of existing Section 301 tariffs (25%), anti-dumping duties (up to 300% for some products), and now the additional aluminum tariffs.
• Unprepared Small Brands: Smaller companies without diversified supply chains or domestic production may struggle to absorb rising costs.

Key Concerns for Car Enthusiasts

1. Wheels and Aluminum-Based Parts
   • Currently Safe: Wheels and other aftermarket parts made in Taiwan or the U.S. are currently classified as finished goods and exempt from these tariffs.
   • Potential Risk: If the U.S. government reclassifies wheels as derivative aluminum products, they could face a 25% tariff. This would impact not only Chinese brands but potentially Taiwanese and U.S. manufacturers that rely on imported blanks or raw materials.

1. Knock-On Effects on Pricing
   • Global aluminum prices are expected to rise due to the tariff’s effect on supply chains. According to economists cited in Forbes, these tariffs could increase consumer prices for aluminum-based goods by 5-7% within the first year, affecting everything from automotive parts to packaging materials. This means car enthusiasts might see price hikes even for products not directly impacted by tariffs due to increased raw material costs.. Even if your part isn’t directly tariffed, the rising cost of raw materials could lead to incremental price hikes.

 

1. Exploitation of the Situation
   • Some companies may use the tariffs as a blanket excuse to raise prices disproportionately. If a product isn’t aluminum-heavy or isn’t made in a tariff-affected country, any significant price increase may not be justified.

How to Spot Legitimate Price Changes

Here’s how you can tell if a price increase is warranted or just opportunistic:

1. Check the Country of Origin:
   • If the product is made in the U.S. or Taiwan, any price increase should be minimal. Significant hikes (e.g., 25%+) could be a sign of opportunistic pricing.
2. Look for Industry Patterns:
   • If similar brands in the same tier (e.g., Konig, Enkei, Work Wheels) all raise prices by 10-15%, that’s likely a legitimate adjustment. But if one brand jumps 40% while others stay steady, it’s worth questioning why.
3. Pay Attention to Timing:
   • Legitimate price increases take time to trickle down. Manufacturers typically absorb higher costs before adjusting their pricing. If prices spike immediately after March 12, it could be an opportunistic move tied to the news cycle rather than actual cost changes.

How to Prepare

If you’re planning a build or thinking about upgrading your car, here’s what you can do to stay ahead:

• Buy Now: If you’re eyeing wheels, intakes, or other aluminum-based parts, it might make sense to buy sooner rather than later to avoid potential price hikes.
• Research Your Brands: Look into where your parts are manufactured and how transparent the company is about their supply chain. Brands like Konig and Stage Wheels have already indicated they’re prepared for these changes.
• Stay Informed: The tariff landscape is still evolving. Keeping up with updates will help you make smarter purchasing decisions.

What’s Next?

The full impact of these tariffs will take months to play out, but one thing is clear: car enthusiasts will feel it. Whether it’s higher prices for aftermarket wheels or delays in part availability, these trade policies ripple down to our community in real ways.

At MartiniWorks, we’re here to help you navigate this. If you’re unsure about pricing or availability, reach out to us—we’re committed to transparency and helping you build your car the right way. Let’s weather this storm together.

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