The cost of new transit buses soared 68% from 2021 to today, Soubry said, with the average selling price for heavy-duty transit buses up 2.7% year-over-year.
“We were directly impacted by tariffs on the imports of steel and aluminum to the U.S. and Canada” during the second quarter, Soubry said. Moreover, the impact of tariffs is unpredictable, he explained. “It’s changing every bloody day,” Soubry said. “A tariff yesterday was X on one country, and now it’s Y,” he said. “So you can just imagine how fluid the thing is.”
He said the company is working with its customers on existing orders to negotiate and amend contracts to reflect tariff costs. Last year, the Federal Transit Administration reminded agencies using federal funds to procure transit buses that they can ask the FTA for additional funds and can amend certain contracts to cover price increases.
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