Trump administration approves Tariffs, and local businesses prepare for additional taxes

ELKHART, Ind. -- President Trump’s new tariffs on China, Mexico, and Canada went into effect Tuesday at Midnight increasing taxes on U.S. importers will pay on goods upon entering the country.

Nexus RV CEO, Claude Dedonati prepares for new tariffs especially because his businesses rely on imported materials and are preparing for rising costs on aluminum and steel.

“We're expecting 25 to 30 percent increases. How that translates to each part will be a little different. And we also buy some chassis and other things from Mexico. So, all the places that are being tariffed are going to affect our pricing. There's no doubt in that,” said Dedonati.

Elkhart is the home to a strong manufacturing industry that depends on imported materials, leaving companies bracing for impact.

Manufacturing makes up 50 percent of the Elkhart County Industries so one of the biggest concerns locally is a possible price increase on steel, aluminum and materials critical to industries like RV & Boat Manufacturing.

The RV industry relies on the materials presenting manufactures with the challenge of absorbing the cost or passing it on to consumers.

With the RV industry being a major driver of Elkhart’s economy, which is also known as the “RV Capital of the World” but with new tax on tariffs that could come at a higher price.

Lexus RV is a local Elkhart business that relies on imports and is now looking for ways to absorb the rising cost without losing customers.

Chassis are the front end of motorhomes that are made of steel outside the U.S. by companies like: Ford, General Motors & Freightliner.

The Greater Elkhart Chamber of Commerce President Levon Johnson tells me that businesses are trying to figure out whether they have enough materials or whether they should stock up without being stuck with too much inventory because it will be taxed.

“We see the effects of that already in grocery stores. And again, when you think about all the produce that we get from Mexico as an example, that's going to hit consumers' pockets.” said Johnson

With 40 percent of Nexus RV’s materials coming from overseas, they say the little pieces that make up bigger products will ultimately increase prices.

The Chamber mentioned with inflation already being high, tariffs being added to it just adds to the anxiety and uncertainty of how consumers and manufacturers will be affected.

For now, manufactures are trying to understand what this means for them while others are pivoting to adjust.

“Over the next few months and maybe a year, you're going to see a lot of companies move back to America and they'll avoid the tariff that way. Or you'll have a Chinese company in collaboration with an American business or firm. They'll put a footprint somewhere in Indiana or Michigan, and then they'll avoid the tariff, because they have a part of their business being built here,” said Dedonati.

The Trump Administration reported that they are confident that the tariffs will boost U.S. manufacturing and attract foreign investment.

This has sparked a global conversation, and experts predict that consumers will see price increases within the next 30 days and Nexus RV will have their new prices posted by May or June.