How to Stay Ahead of Tariffs and Trade Changes that Could Affect Your Industrial Business Part 1

PMA Weighs In On Industry Impact and Staying Competitive

Significant changes to industry tariffs and trade kicked off 2025 and are quickly evolving. Despite the uncertainty, when we spoke with David Klotz, President of the Precision Metalforming Association, he said the membership is concerned but cautiously optimistic. Through PMA’s monthly business conditions surveys, members keep close tabs on industry trends, consistently seeking ways to adapt and thrive.

The current administration’s pro-manufacturing stance could strengthen the sector, but the path forward isn’t without challenges. PMA is concerned that tariffs that protect only one part of the supply chain but leave the other exposed hurt its members. As Klotz notes, every new policy produces winners and losers—adaptation is critical to staying competitive.

Klotz took the time to share with us what PMA is hearing and what businesses can do to adapt and stay agile this year. We look at the tariff decisions PMA and its membership are watching and how each impacts the industry. We then guide you on how your business can adapt via business and marketing strategies.

Tariffs on Steel and Aluminum

Tariffs on all steel and aluminum from all countries will be 25% starting March 12th, and the product exclusion process will end. As a result, steel prices will rise, creating ripple effects across the industry.

Higher steel prices will hurt the stamping industry, which uses steel and aluminum as raw materials. Even if manufacturers don’t use imported materials, tariffs result in higher prices because they protect the domestic market from competition.  Many companies are actively negotiating with customers to pass along the cost increases. The result for consumers could be higher prices for final products.

Press manufacturers and capital equipment makers who use steel and aluminum as raw materials may look to buy materials domestically (a good thing) for a more stable supply chain (another good thing) but shortages of supplies may occur (not a good thing). Materials will need to be purchased at a higher cost (another not-good thing).

Meanwhile, an area that will benefit from these tariffs will be tool and die. If metal production increases, demand for tooling and dies used in metal forming, stamping, and fabrication will rise.

Other Significant Tariff Changes Coming in 2025

These tariffs could prevent products from coming in, including materials the country can’t manufacture due to a lack of capabilities.

• 20% tariff on all Chinese goods: affects articles that are products of China and Hong Kong and eliminates the de minimis duty exemption for Chinese products. The new tariffs are in addition to existing tariff rates, which brings the total to a 35% tariff rate on most Chinese imports.

• 25% tariffs on all goods from Mexico and Canada: imposed on March 4^th and suspended until April 2^nd, excludes energy resource imports from Canada, which will have a 10% tariff.

• Reciprocal tariffs: U.S. tariffs will match other countries’ tax rates on imports.

• Copper tariffs: U.S. tariffs on copper imports are being studied.

Many businesses, not just industrial, are in a holding pattern regarding investing to see how things shake out.

Affects on Reshoring and Electric Vehicles

The new tariffs could reignite reshoring efforts, boosting demand for press equipment and locally sourced capital goods. An issue with reshoring and increased production is the skills gap—there aren’t enough skilled workers as it is.

As incentives roll back, businesses that invested or shifted offerings to accommodate the electric vehicle market are in a tough spot. EV capabilities are still lacking overall, so the EV market may slow down while the regular auto industry will stay flat. OEMs are looking to recoup losses by shifting their focus to hybrid vehicles.

Remaining agile in this turbulent environment will be critical, especially as tariffs and policies continue to evolve.

How to Stay Competitive

Information is the backbone of effective decision-making, especially with fast-moving market changes where staying ahead is critical. Leveraging resources like PMA ensures you remain up-to-date with the latest market trends, regulatory changes, and industry best practices. Access to reliable, up-to-the-minute information empowers you to act confidently.

Further guidance was provided on your investments, emphasizing the value of your existing clientele—an asset you’ve already invested in and seen returns from. Maintaining strong relationships with current clients is one of the most effective strategies for sustaining revenue, especially during times of uncertainty. By focusing on serving this audience, you can reinforce loyalty and create opportunities to adapt collaboratively.

Finally, there’s no reason to hold back on investing in software, automation, or AI solutions that drive efficiency. Staying competitive both domestically and globally requires continuous innovation in any economic climate. When the market rebounds and customers start spending again, you’ll want to be ahead of the curve, not scrambling to catch up.

Stay in the Conversation By Using Marketing

As businesses prepare to pivot, Klotz shared one last piece of advice:

“You should never stop marketing. When the market is down, spending on marketing and training during slow production times means they call you first when the market picks back up”.

The message is clear—those who stay ready won’t have to get prepared. The companies that adapt, innovate, and maintain a strong marketing presence during downturns will be the first to capture opportunities when the market rebounds.