Whether or not the US economy and supply chain will be impacted by tariffs has yet to be fully discovered, as it appears the global economy is prone to rapid changes. Regardless, you need to be prepared.

As constantly evolving tariff proposals look to be rolled out across a range of imported goods, from electronic parts to industrial machinery, businesses across the supply chain are bracing for the possibility of higher costs and an overall increase in operational uncertainty. While these changes are all too often discussed through a political lens, their real and immediate impact is being felt at the ground level – inside warehouses, factories, distribution centers, and more.

For the companies that are already navigating labor shortages, rising material costs, and unpredictable demand, the proposed tariffs could introduce another layer of complexity. But … they can also serve as a wake-up call!

Now more than ever, organizations need to future-proof their operations and organizations. We are of the firm belief that automation may be the solution to a clear path forward. When a company embraces automation, they can reduce their dependence on volatile global supply chains while also absorbing cost pressures and building resilience within their operations.

According to a new MHI and Deloitte report, 55% of supply chain leaders are increasing their investment in supply chain technologies and 60% are planning to invest over $1 million. Nearly 20% are planning to spend over $10 million.

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Tariffs and Their Direct Impact on Supply Chains

Tariffs have a ripple effect across global supply chains, especially for companies reliant on imported goods, components, or raw materials. The immediate impact is often financial, resulting in increased duties that raise the cost of everything from robotics parts to finished consumer products.

While financial impacts are the most obvious impact there are possible issues and consequences beyond the surface. Project timelines, supplier relationships, and long-term planning are all factors that stand to be deeply impacted by the proposed tariffs. Looking at these though, automation stands to offset some of these negatives – let’s see how.

Increased Cost of Imported Components

Tariffs on electronics, metals, and machinery can drive up prices for parts critical to manufacturing, distribution, and automation systems themselves. For companies that rely on imported components, the added costs may erode margins and delay capital investments.

• Automation helps offset these rising costs over time through reduced error rates, labor savings, and improved productivity which creates a path to ROI even in a higher-cost environment.

Disrupted Supplier Networks

Tariffs often lead companies to rethink sourcing strategies — switching suppliers, rerouting shipments, or reshoring production. While necessary, these shifts can disrupt operations and strain internal teams.

• Automated systems, especially those with modular or plug-and-play architectures, offer the flexibility to scale up or adapt quickly to new workflows without major reconfiguration.

Longer Lead Times and Uncertainty

New regulations can lead to shipping delays, customs slowdowns, and added complexity at borders. For industries that rely on just-in-time inventory or tight delivery windows, this unpredictability is costly.

• Automation streamlines order fulfillment and inventory management, making it easier to maintain service levels even amid supply disruptions. Predictive analytics tools also help forecast needs and optimize available stock.

Pressures on Labor and Logistics

As businesses absorb tariff costs, many look to trim expenses elsewhere — often turning to labor reduction or leaner logistics.

• Warehouse automation, robotics, and smart software help do more with less by increasing throughput and reducing reliance on manual labor, especially in areas hit hardest by labor shortages.

Why Tariffs Can Be a Catalyst for Automation Investment

While tariffs pose immediate challenges, they also present a pivotal opportunity for businesses to rethink long-term operational strategies. In many cases, the financial pressure created by tariffs accelerates the business case for automation, turning short-term pain into long-term efficiency gains.

Rising Costs Make Automation ROI More Attractive

As both labor and import costs climb, automation becomes a more compelling investment. The upfront expense of automation can be offset more quickly when businesses are facing sustained increases in operating costs. With the right systems in place, companies can streamline production, reduce error rates, and operate more efficiently.  All of which directly improve margins in a tariff-heavy environment.

Building Resilience Through Operational Independence

Automation reduces dependency on manual labor and foreign-sourced components by creating more self-sufficient operations. For example, automated storage and retrieval systems (ASRS) and robotics can significantly reduce labor needs while maintaining consistent output. And by minimizing touchpoints and standardizing processes, companies can better withstand disruptions caused by global policy shifts or supplier instability.

Supporting the Shift Toward Domestic Manufacturing

Tariffs are prompting some companies to reshore or nearshore their operations, a move that comes with its own challenges, particularly around labor availability and infrastructure. Automation bridges these gaps by enabling domestic facilities to produce and fulfill at scale without needing to match foreign labor levels. Technologies like goods-to-person robotics and automated packaging systems allow companies to bring production closer to home without sacrificing speed or efficiency.

What to Consider When Investing in Automation Amid Tariff Changes

For companies ready to explore automation as a strategic response to tariff pressures, the decision shouldn’t be rushed, but it also shouldn’t be delayed. Choosing the right solution now can provide long-term stability, but it requires a thoughtful approach that balances immediate needs with future resilience.

1.) Prioritize Solutions with Domestic or Low-Tariff Supply Chains

Not all automation solutions are equally affected by import duties. When evaluating vendors, consider where their hardware is manufactured and assembled, and whether critical components are subject to high tariffs. Opting for systems with strong domestic sourcing or established local support networks can help minimize exposure to future trade fluctuations.

2.) Choose Vendors with Strong Support and Fast Implementation

In a rapidly changing environment, long lead times or weak after-sales support can stall progress. Look for partners who offer local technical support, flexible deployment models, and a proven ability to deliver on short timelines. This ensures your automation investment begins delivering ROI quickly and remains supported in the long term.

3.) Focus on Total Cost of Ownership (TCO)

Tariffs may increase the upfront cost of some equipment, but those initial costs must be weighed against the long-term savings automation deliveries. A robust TCO analysis should factor in reduced labor costs, higher throughput, energy savings, and lower error rates, all of which can make automation a smarter investment than continuing to absorb rising operational expenses caused by tariffs.

Conclusion

Tariffs add new layers of complexity to an already challenged global supply chain. From rising import costs to shifting supplier strategies, the pressure is every present. But so is the opportunity!

These disruptions serve as a powerful reminder that resilience, flexibility, and operational efficiency are no longer optional.

Investing in automation today isn’t just about reducing costs, it’s about building a more self-reliant, future-ready business. Now is the time to view automation not only as a productivity tool, but as a strategic buffer against the uncertainties of global trade.