Trump’s tariffs trip up the all-American RV industry

‘It’s good for our country in the long haul, but it’s going to hurt’

soared to more than 19%.

Tim Sullivan, CEO of REV Group, Renegade’s parent company, said US suppliers have raised prices alongside their foreign counterparts because tariffs have sparked a rush of demand for US parts.

“It’s been a total feeding frenzy,” he said.

Michael Happe, CEO of Winnebago Industries Inc, said he expects tariffs will add more than $10 million to the company’s costs this fiscal year, ending in August.

The upshot, he said, is that most RV manufacturers have had to boost prices they charge dealers.

“Those make their way to the end customer,” he said.

Despite its all-American image, the RV industry relies on imports for everything from air compressors and appliances to bedding fabrics and the LED light strings that have become a popular interior feature.

The cost of metals surged dramatically after sweeping tariffs on steel and aluminum were imposed last year. Those prices have since moderated, but manufacturers say many of the price increases on the metal parts they buy haven’t gone away.

Elkhart’s RV industry anchors a large network of related transport equipment companies, including utility trailer makers and specialty bus manufacturers, who rely on the same supply chains. Matt Arnold, president of utility trailer manufacturer Look Trailers based in Middlebury, Ind, said the axles he buys had three price hikes and are now 28% higher than before tariffs, while his Chinese tire rims were hit with a 65% tariff.

His rim supplier shifted to a source in Vietnam, but those still cost 8% more than he was paying before. In response, he boosted his trailer prices by about 20%, but that tanked sales. So far, he’s had to shutter his Georgia factory, laying off 80 people, and cut about 10% of his workforce in Indiana.

Tariffs have so far translated into a 5% increase in RV sticker prices for consumers, estimates Gregg Fore, chief revenue officer at trade magazine RV Business and the former owner of an RV parts supplier, based on anecdotal reports and proprietary sales data he has seen.

“That doesn’t sound like a lot, until you start to talk about adding $1,000 to the price of a $20,000 vehicle,” he said.

Many RVs cost far more. Renegade, for instance, sells models that cost as much as $750,000 and can come with multiple bathrooms, heated tile floors and cedar closets.

Some industry leaders say the business will stabilize once dealers reduce excess stocks. But many of the region’s leaders are worried, including Jackie Walorski, the Republican who represents the area in Congress.

Walorski is an outspoken critic of President Trump’s tariffs, although she steps lightly. In a statement, she praised the President’s tax cuts and other policies for helping fuel economic growth. (RTRS)