Kansas City area appliance stores brace for impact of new steel, aluminum tariffs

MISSION, Kan. (KCTV) - Starting Wednesday, 50 percent tariffs on steel and aluminum take effect and local appliance stores are bracing for impact.

The new tariffs could impact the cost of everything from household appliances to office supplies. It’s a move President Donald Trump says is meant to protect America’s steel and aluminum industries.

According to the International Trade istration, the United States imported 26.2 million metric tons of steel and 5.4 million metric tons of aluminum last year. Canada remains the top source of foreign metal.

Local stores like The Appliance Shark say they try to keep prices fair. But with looming tariffs and increased restocking costs, they say higher prices at checkout for customers is inevitable.

“As long as I can get them at a price that I can still make a profit and help people, help Kansas City, I’m all for it,” said Appliance Shark store owner Joey Lay.

Everywhere you look at The Appliance Shark, you’ll see scratched-off costs and signs promising major savings on stainless steel refrigerators, washers and dryers. It’s what Lay says the store has become known for.

He explains the average cost of a stainless steel refrigerator typically ranges from $1,500 to $2,500, and he’s been able to keep costs low. But with the threats of tariffs, he expects to see smaller profit margins.

“I think if I pay a little bit more, you might have to pay a little bit more and save a little bit less for each of us but I think that we’ll be okay,” he said.

Lay says for decades, costs have remained relatively stable.

“Thirty years ago, you used to be able to buy a fridge that lasts 20 years. None of these appliances here are gonna last 20 years. They just don’t last the same because we’re getting our parts from all over the place,” he said.

He hopes the decision to enforce tariffs on steel and aluminum goods will lead to a stronger push for American-sourced products.

“The non-American brands, they cut corners, they use cheap parts, they don’t last and same thing with part manufacturers,” Lay added.

Bo Culbertson, a local property manager, buys about 10 appliances a month to stock his rental properties across Missouri. He says he’s already seeing a trickle-down effect on the local housing market.

“It’s across the board. It goes up and it goes up. What used to rent for 700 is now 1200 just to accommodate insurance, taxes,” said Culbertson.

Culbertson says he’s stayed ahead of the game to keep business going and feels ready for whatever is next.

“If you buy them right, you can still elevate but if you don’t buy them right, you can’t stay in the game but I bought them right so I’m okay,” he said.

Lay says the cost of restocking appliances has stayed steady over the past year, even as global markets shift. In fact, a few months ago, he paid 30 percent more on a shipment of appliances, only for prices to drop again.

“There’s never a day where I don’t adjust but I think in the next three to six months we’re gonna find out if I do have to adjust. Hopefully I don’t, hopefully if it goes up five to ten percent I can eat some of that cost and then maybe raise it a few percent but it all depends on what comes and how much comes,” Lay said.

Store ownership says they’re watching the market closely over the next six months and will be prepared to make necessary changes.

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