E-Motion Newsletter: Tariff & Trade Update â€“ July 2025

E-Motion Newsletter
Tariff & Trade Update – July 2025

Company News – July 2025

In 2025, the global trade landscape is undergoing substantial shifts due to new tariff policies implemented by the United States under the Trump administration. These tariffs are causing considerable disruption and uncertainty for businesses and consumers worldwide. One of the most impactful developments is the implementation of a 10% baseline tariff on imports from most countries, effective April 5, 2025. This rate may increase for certain countries as negotiations continue. As a result, the average effective U.S. tariff rate has reached 27%.

At E-Motion America Inc., we greatly value our relationships with both suppliers and customers. We remain committed to delivering innovative, high-quality automation solutions while maintaining stable and competitive pricing. However, the recent tariff increases have significantly affected our cost structure.
Despite our best efforts to absorb these rising costs, the evolving trade environment has made it necessary for us to implement a tariff surcharge on certain products.
Starting immediately, a surcharge of 5% to 25% will be applied to select items. This adjustment reflects the real-time impact of tariffs on our supply chain. As tariff policies evolve, we will continue to monitor changes and adjust the surcharge accordingly—reducing, eliminating, or increasing it as necessary.
We greatly appreciate your continued partnership and understanding during this period of change.

⚙️ U.S. Tariff Changes Impacting Automation Components

Based on the latest information available as of July 2025, here are the major tariff developments affecting the industrial automation industry—and what they mean for your operations.

Key Changes:

U.S. Tariff Rates at Historic Highs: The average applied tariff rate on imports into the U.S. has surged to 16.8%, the highest level in decades.
Increased Costs for Automation Components: Tariffs on electronics, semiconductors, and components from China are significantly raising procurement costs.
Tariffs on Specific Machinery Categories: Industrial, construction, and agricultural machinery components are now subject to tariffs ranging from 10% to 25%.
Expanded Steel and Aluminum Tariffs: A 25% tariff now applies broadly to steel and aluminum imports, including from previously exempt countries.
Investment Uncertainty and Slowdown: Ongoing trade tensions are creating hesitation in capital spending on automation projects.
Shift Toward Domestic Production and Reshoring: Manufacturers are reevaluating global supply chains and exploring local or nearshore production to mitigate tariff impact.

💡 What This Means for You
Price changes and adjusted lead times may occur. E-Motion Supply is working proactively to minimize disruption.

Higher Costs: Expect price increases on automation components, materials, and systems.
Supply Chain Disruption: Sourcing strategies are shifting, which may cause short-term instability.
Project Delays: Rising costs and policy uncertainty may delay planned automation investments.
Domestic Alternatives: Consider sourcing from domestic or tariff-free regions to minimize risk.
ROI Reassessment: Evaluate capital expenditures carefully under the new cost structures.
Legal Developments: Ongoing legal challenges, including a key appeal hearing on July 31, 2025, may influence future tariff changes.

⚠️ Note:
The trade landscape remains fluid. The U.S. government is expected to announce reciprocal tariff rates for key trading partners before August 1, 2025. Staying informed will be critical to managing risks and opportunities in your automation strategy.