BIRMINGHAM, Ala. — A federal tariff is being blamed for an unexpected price bump on new buses at a central Alabama school district.
Autauga County Superintendent Lyman Woodfin told board members last week that it was notified that a $2,500 tariff is being added to six of the 11 school buses it purchased last fall – a charge that district leaders did not expect that could strain an already tight budget.
“I’m not very happy with this,” Woodfin told the board during their April 15 meeting. “We received notice that there’s now a government tariff they are trying to put on the buses that we bought.”
State Superintendent Eric Mackey told Alabama Daily News Tuesday that Autauga County is the first district he’s aware of to receive the tariff charge – but likely not the last.
“We found out that most of the bus vendors are planning on charging a surcharge,” Mackey said. “We don’t have an exact number – $1,500 to $2,500 – but we don’t have that in writing yet.”
The buses were ordered in September from manufacturer Blue Bird through Central States Bus Sales. District officials said the tariff is being applied to parts manufactured after a federal tariff took effect, though they did not specify which tariff or when it began.
“We were notified of potential tariffs levied on six buses that we purchased in September 2024,” Chief School Financial Officer Lesley Poe told Alabama Daily News Tuesday. “These buses from the 11 that we purchased were affected based on the timing of the manufacturing process.”
Poe said if the district is required to pay the tariff, the added cost will have to come out of local funds.
“If we have to pay the tariff, the unexpected $15,000 will require us to use local funds to cover the additional cost; however, since we only collect the minimum required millage for local funding, expenses like this add up quickly for us,” she said.
The Trump administration has implemented multiple new tariffs in recent months, and paused some after pushback and financial market declines. Last month he announced a 25% tariff on automobiles set to take effect May 3.
State funding currently covers about $76,000 of the cost of a purchase of a school bus.
Mackey said it’s too late to request additional funds in this year’s state education budget, but he expects to ask lawmakers for help next year if the tariffs remain in place.
“It might be dropped if the tariffs go away,” Mackey said. “But the trend is that usually when prices go up, they don’t come back down. So we’re worried about it.”
An invoice included in the board meeting agenda shows the district is purchasing:
- Two 72-passenger buses costing $130,274 each,
- Four 72-passenger buses costing $132,774 each, including the $2,500 tariff
- Three special needs buses costing $146,328 each,
- Two special needs buses costing $148,828 each, including the $2,500 tariff.
Woodfin said the district tried to push back on the charge with the vendor, but was ultimately told it must be paid.
Alabama Daily News was unable to reach officials at Central States Bus Sales and Blue Bird prior to publication of this article.
During a February earnings call, Blue Bird CEO Phil Horlock told investors that tariffs would be passed along to customers, estimating up to an added 5% cost for non-electric buses.