Automotive Fleet
MenuMENU
SearchSEARCH

How the Trump Tariffs Will Affect Fleets

President Donald Trump's executive order imposing tariffs on foreign steel and aluminum may translate to higher prices to commercial fleets for vehicles and truck or van equipment, fleet management company experts said.

Paul Clinton
Paul ClintonFormer Senior Web Editor
March 12, 2018
How the Trump Tariffs Will Affect Fleets

Photo of Donald Trump via Gage Skidmore/Wikimedia.

4 min to read


Photo of Donald Trump via Gage Skidmore/Wikimedia.

President Donald Trump's executive order imposing tariffs on foreign steel and aluminum may translate to higher prices to commercial fleets for vehicles and truck or van equipment, fleet management company experts said.

Following Trump's March 8 executive order, tariffs of 25% on steel and 10% on aluminum imported into the U.S. go into effect 15 days later. Canada and Mexico will initially be exempted from the tariff, and other countries could be added later, according to reports.

Ad Loading...

Wall Street and automotive analysts have said the tariffs are likely to increase vehicle prices because manufacturers would pass along higher costs to customers.

"A likely result from these new steel and aluminum tariffs is that costs will increase throughout the supply chain, driven by higher raw material prices," said Charlie Chesbrough, senior economist for Cox Automotive. "With demand at high levels already, it’s likely suppliers will pass their higher costs up the chain, and eventually to car buyers. Alternatively, suppliers may have to absorb the higher input prices by cutting their own costs — generally, neither outcome is good for the industry."

JPMorgan analyst Ryan Brinkman released a report saying the tariff would likely impact the earnings of Ford and General Motors, but he added that any rise in the prices of these materials would likely be absorbed by the manufacturers, reports CNN Money.

Equipment manufacturers such as Adrian Steel, Knapheide, Ranger Design, and others have begun using lighter-weight materials but still primarily offer steel-based shelving, ladder racks, and other equipment.

Whether fleets will pay more for their vehicles and auxiliary equipment remains to be seen, said Partha Ghosh, ARI's director of vehicle supply chain and remarketing.

Ad Loading...

"Depending on where OEMs and upfit vendors source their steel and aluminum, and how much of these materials they source from foreign producers, they may be impacted by costs increases to varying degrees," Ghosh said. "Ultimately, we anticipate that how and when they choose to react to these possible input costs will likely depend on market landscape, competitive pressures, degree of the cost impact and the expected length of the impact."

Vehicle manufacturers have been reducing the amount of steel in their vehicles in recent years as a strategy to lighten weight to achieve higher fuel economy, a strategy that could help reduce the impact of the tariffs, said Dan Frank, chief executive of Wheels, Inc.

"The average vehicle is 54% steel and has about 1 ton of steel in it," Frank said. "Steel costs about $700 a ton, which is up about $100 per ton since tariff talks began, so some of the cost is already baked in. In any case, a 25% tariff, even if not offset, competed away [and] absorbed by the OEMs wouldn’t add that much to the cost of a vehicle."

Vehicles that contain steel and aluminum from foreign sources could see a higher cost increase, said Jeffrey Perkins, vice president of operations for Motorlease Corp.

"Making the underlying assumption that all of the steel and aluminum used to build a single average U.S. vehicle, is sourced from one of the locations subject to the tariffs, I approximate the cost to be in the range of $250 to $300 per vehicle," Perkins said. "This value however is arrived at solely based on the assumption of a straight pass through of the tariffs and does not take into account any of the additional costs that a manufacturer or supplier may bare such as new contract negotiations and additional carrying costs. While the additional $250 to $300 may seem strong as a percentage on a less expensive vehicle, vehicles priced in the mid-$20,000 to mid-$30,000 where we see most of the current small and mid-size SUV/crossovers priced today equates to about a minimal 1% increase."

Ad Loading...

Other fleet management experts said the tariffs could lead domestic steel producers to create more jobs.

"While it’s likely there will be short term employment gains in the protected industries, for those manufacturers that have depended on imports for some of their supply chain raw materials there is the strong possibility they will pass through to consumers and businesses their increase cost of goods," said Tom Coffey, vice president of sales and marketing for Merchants Fleet Management. "Overall, it is very possible we will see an impact in vehicles prices."

More Operations

Commercial Fleet
SponsoredJuly 23, 2026

The Top 300 Commercial Fleets

The Top 300 Commercial Fleets: See the List

Read More →
Cover of the "Top 50 Green Fleets" report presented by Automotive Fleet and Inspiration Fleet, featuring an aerial nighttime photo of a lit highway interchange with looping ramps.
SponsoredJuly 16, 2026

The Top 50 Green Fleets

The List Is in: The Top 50 Green Fleets

Read More →
A car dealership with added inscription "Every fleet vehicle eventually becomes local."
Operationsby Chris BrownJuly 15, 2026

Your Local Dealer Knows More Than You Think

Your local dealer can provide an information advantage that extends well beyond courtesy deliveries.

Read More →
Ad Loading...
Portrait of Austin Schutte, founder and CEO of Anew Solutions, featured in Automotive Fleet's Fleet Meets series highlighting his career, leadership philosophy, and fleet industry insights.
Operationsby Faith HowellJuly 14, 2026

Fleet Meets: Austin Schutte

Here are some industry insights, personal touches, and words of advice from the CEO and Founder of Anew Solutions.

Read More →
Photo of Team Brown building soap box derby
Operationsby Chris BrownJuly 13, 2026

Soap Box Derby Challenge: What’s Powering Team Brown

The car is coming together, the students are solving real build problems, and the fleet industry is helping push Team Brown toward the starting line.

Read More →
Green and black bar graphs showing 2026 versus 2025 fleet sales.
Vehicle Researchby Martin RomjueJuly 8, 2026

Commercial Fleet Sales Contribute To June, YTD Gains

The fleet sector has boosted its vehicle purchases at a reliable pace in the first half of this year compared with 1H 2025.

Read More →
Ad Loading...
A black square with white color font text
SponsoredJuly 2, 2026

What Fleet Managers Really Want From Vendors

From customer service frustrations and technology breakdowns to RFQs, change management, and the growing impact of turnover across the industry, this conversation pulls back the curtain on the real operational challenges fleet managers are navigating every day.

Read More →
A black square with white color font text
SponsoredJuly 2, 2026

Fleet Safety Masterclass: Industry Leaders on Storytelling, Strategy & Innovation

In this special masterclass episode, industry leaders break down what it really takes to build safer fleets in today’s increasingly distracted and data-driven world.

Read More →
A black square with white color font text
SponsoredJuly 2, 2026

Integrating Legacy Fleet Systems and Historical Data

In this episode, we bring together fleet and technology leaders to unpack the realities of data integration, system migrations, and the evolving role of AI in fleet management.

Read More →
Ad Loading...
A black square with white color font text
SponsoredJuly 2, 2026

From Resistance to Results: Change Management Strategies for Fleets

From new technologies and safety programs to evolving regulations, fleets are under constant pressure to adapt. But as Dr. Betz explains, success isn’t about the system you implement—it’s about whether your people actually use it.

Read More →