AAP Automation: Tariffs

To our Valued Customers,

Re: Tariff Related Price Changes and Tariff Invoicing

During the first half of 2018 the Federal Government announced new tariffs on imported aluminum and steel, the tariffs are known as Article 232 and Article 301.

  • Section 232, June 1, 2018: Restrictions on steel mill (25%) and aluminum articles (10%) all countries of origin except Argentina, Australia, Brazil, and South Korea.
  • Section 301, July 6, 2018 Restrictions on products from China, 25%

These tariffs are resulting in increasing costs throughout the supply chain for virtually all industrial products. We are seeing two basic types of increases coming from the Industrial Manufacturers we represent: 1) List Price Increases and 2) Tariff Surcharges.

Effective immediately, we will begin charging additional amounts to offset AAP’s increased product costs. The additional charges will be implemented on all outgoing shipments and invoices beginning September 4, 2018.

We have studied the price changes announced by our major suppliers and we are modeling our changes based on theirs, by Manufacturer and Product Group. If the Manufacturer is implementing a List Price Increase, we are likewise will be implementing a similar basic price increase. For those Manufacturers implementing Tariff Surcharges, we are passing along such Surcharges for those Product Groups. Surcharges, when applicable, will be shown as “Other Charges” on AAP invoices when applicable.

The discussion at the Federal Government level regarding tariffs is dynamic and prices may have to be adjusted further. We will closely monitor ongoing events following September 4, 2018 implementation and endeavor to inform you as tariffs are reduced or eliminated, we’ll adjust either list prices and / or surcharges accordingly.


Wes Brown

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