🌎 Global Tariffs Are Shifting—Here’s What It Means for U.S. Manufacturers and Automation Part Buyers

As of mid-April 2025, the global tariff landscape has changed dramatically. For U.S. manufacturers and sourcing teams who depend on industrial automation parts like drives, motors, HMIs, PLCs, and power supplies, these changes aren’t just political—they’re operational, financial, and urgent.

Here's what’s happening, why it matters, and how you can respond.

1️⃣ 245% Tariffs on Chinese Imports: A Game-Changer for Automation Sourcing

On April 16, 2025, the U.S. officially implemented 245% tariffs on Chinese imports under new Section 232 national security rules. These tariffs hit a broad category of products, including:

• Electronic components
• Processed critical minerals
• Machine parts
• Industrial-grade hardware

Key Takeaway: If your supply chain includes parts sourced from China—either directly or via distributors—you’re already facing higher prices or longer lead times.

🛑 Pro Tip: Double-check your BOMs and purchase orders. Many parts listed as “U.S. stock” may have Chinese origin codes, which now trigger duties.

2️⃣ China Retaliates: Services, Components, and Supply Chains at Risk

China responded quickly. According to CNBC and Reuters, the Chinese government is targeting U.S. services, supply contracts, and B2B relationships, particularly in high-tech and industrial sectors.

This adds another layer of instability. Expect more vendor disruption, abrupt price increases, and service interruptions—especially if your suppliers or equipment providers rely on Chinese manufacturing, even partially.

3️⃣ Deflation in China = Supply Chain Uncertainty

As reported by the New York Times, China’s economy is experiencing deflation, with falling factory prices and weaker exports. While that may sound like good news for buyers, in reality it means:

• Factories may cut production or shut down lines
• Raw materials could become more volatile
• Smaller manufacturers could exit the market entirely

Why It Matters: A deflationary China means less reliability in sourcing affordable, consistent industrial automation parts from the Asia-Pacific region.

🗣️ “Even with big-name suppliers, we’ve had cases this month where parts went from ‘2-week lead’ to ‘discontinued’ overnight. It’s the new normal.”
— Zac Benfield, Inside Sales Rep, Industrial Automation Co.

4️⃣ U.S. Government Takes a Hard Line on Minerals and Electronics

In addition to general tariffs, the White House enacted Section 232 restrictions on processed critical minerals and derivative products. This affects:

• Battery components
• Electronic assemblies
• Automation internals like capacitors, relays, and chips

Many of these parts are essential for PLCs, VFDs, servo drives, and HMIs used in factory modernization and maintenance.

5️⃣ Ripple Effects for OEMs, Resellers, and Distributors

Reports from Axios, Politico, and Reuters suggest that U.S. OEMs and authorized distributors are facing margin pressure and delayed shipments as new tariffs take effect. Even authorized stock may be impacted if the manufacturer’s production depends on foreign subcomponents.

Impacted Areas Include:

• Allen-Bradley PowerFlex 525 Drives
• Siemens SIMATIC S7-1200 G2 PLCs & Modules
• Rockwell Automation platforms
• ABB low-voltage and motion systems
• Mitsubishi and FANUC servo drives and motors

What You Can Do:

• ✅ Vet your suppliers to confirm country-of-origin
• ✅ Look for in-stock U.S. parts from independent resellers
• ✅ Confirm lead times before purchase
• ✅ Explore refurbishment or repairs for aging systems

6️⃣ How Industrial Automation Co. Is Responding

At Industrial Automation Co., we’re adapting fast to help our customers stay ahead of the disruption:

• ✅ Thousands of parts in stock at our U.S. warehouse
• ✅ Same-day shipping on stocked items
• ✅ No surprise duties on verified inventory
• ✅ Refurbished options for legacy systems
• ✅ Consignment & emergency sourcing available

We’ve already seen a surge in demand as factories look to beat tariff deadlines or replace aging Chinese components with available alternatives.

7️⃣ What Buyers Should Do Right Now

• ✅ Audit Your Inventory
  Check which machines, control panels, or drives depend on components from China or Southeast Asia.
• ✅ Order Critical Spares Now
  Don’t wait until something fails. Tariffs are already inflating prices and increasing delays.
• ✅ Consider Alternate Sources
  Explore independent suppliers and repair specialists with in-stock U.S. parts.
• ✅ Secure U.S.-Based Warranties
  Stick with companies that offer U.S. warranties and technical support.
• ✅ Evaluate Repair vs. Replace
  Repairs may be faster and cheaper than sourcing a tariffed replacement.

🧭 Final Thoughts

The tariff tides are turning fast. If you work in industrial sourcing, factory maintenance, automation integration, or parts procurement, now’s the time to adjust your sourcing strategy. Delays, shortages, and price hikes are no longer “if”—they’re happening.

We’re here to help you navigate uncertainty, avoid surprise costs, and keep your plant running.

📞 Need help fast? Call our sales team at 877-727-8751 or email us at sales@iac.us.com.