The Impact of U.S. Tariffs on Industrial Automation

⚙️ Rising Costs for Control System Components

Tariffs have raised the cost of importing automation components such as PLCs, HMIs, and drive systems, especially those sourced from China and other Asian countries. According to MRO Electric, these additional fees can range from 10% to 25%, significantly affecting project budgets and upgrade plans.

For manufacturers already grappling with aging infrastructure and limited capital, this creates a difficult choice: delay automation or bear the cost.

🔄 Supply Chain Disruptions & Delays

Tariffs are not just a pricing issue—they ripple through global supply chains. Automation World reports that tariffs have led to longer lead times, component shortages, and increased uncertainty. These delays are especially problematic for time-sensitive projects, like system migrations or seasonal production upgrades.

We’re seeing growing delays on controllers and I/O modules, disruptions that can throw off even the best-laid project schedules. In response, our team works closely with customers to assess alternative suppliers and adapt engineering plans to keep timelines intact.

🌍 Global Realignment of Automation Supply Chains

Robotics & Automation News highlights how trade tensions are altering the locations from which companies source automation technologies. Many are shifting away from Chinese suppliers in favor of European or U.S.-based manufacturers or are reshoring production altogether.

This presents both an opportunity and a challenge: new suppliers often require different integration standards or training.

Our role in this landscape is to assist customers in adapting seamlessly. Whether transitioning to Siemens hardware or implementing flexible SCADA solutions like Ignition, our team ensures that technical transitions do not disrupt operations.

📈 Strategic Adjustments: Automation Is Still the Answer

According to Markets & Markets, although tariffs present a challenge, they have also stimulated increased investment in automation to enhance efficiency, decrease reliance on labor, and offset long-term costs.

In fact, manufacturers that modernize their control systems now may be better positioned to absorb future economic shocks by reducing downtime, increasing visibility, and remaining competitive.

🧩 Navigating Tariff Challenges Through the Appropriate Engineering Approach

 Tariffs are complicating automation planning, affecting costs, timelines, sourcing, and system flexibility. We help customers respond with practical strategies grounded in engineering expertise and real-world constraints:

• • • Evaluating hardware alternatives when key components are delayed or affected by tariffs
    • Revising control logic and system designs based on realistic component availability
    • Using simulation tools like SIMIT to reduce on-site commissioning time and minimize risk
    • Designing adaptable systems that avoid being locked into a single supply chain or vendor

It’s not just about responding to trade policy; it’s about developing automation strategies that stay resilient regardless of how the external environment shifts.

✅ Final Thought: Be Proactive, Not Reactive

Tariffs and the broader trade environment are beyond your control. But how you plan, source, and modernize your automation systems is not.