A published report over the weekend suggests auto repairs in the U.S. could rise following the latest round of tariffs on Chinese goods.
According to Bloomberg, auto parts retailers are predicting higher car-care costs in the wake of global trade issues.
In an invester phone call, Advance Auto Parts Inc. executive VP Bob Cushing said Advance has been able to pass on the expense of existing tariffs without hurting sales. Costs will continue to rise, however, with the latest duties on $300 billion worth of Chinese goods.
“Without a doubt, the 25% of tariffs for this round is a meaningful increase on to our customers, but the industry historically has been able to pass on these increases,” Cushing said.
The comments echoed what AutoZone Inc. CEO Bill Rhodes told analysts after posting quarterly sales and earnings that beat estimates.
“Let me be the first to say, we are not pleased about the tariffs,” Rhodes said. “We are concerned about what that will do not so much to AutoZone or our business, but more to what it would mean to the U.S. economy. But we have a strong history of being able to say, OK, we can pass those on to our customers.”