accountant with bills

The recent implementation of tariffs on aluminum and stainless steel is impacting industries across the board, from beverage manufacturing to pharmaceutical businesses that rely on high-quality tanks and fittings. At Glacier Tanks, we understand the challenges these tariff increases present, and we are taking steps to mitigate their effects for our customers.

Our Approach to Absorbing Costs

Rather than immediately passing the increased costs onto our customers, we had implemented internal process improvements and reduced our profit margins to absorb as much of the tariff burden as possible. We are optimizing supply chain operations, renegotiating supplier contracts, and streamlining logistics to minimize cost increases. However, despite these efforts, some price adjustments are being implemented to account for aspects outside of our control, such as the rising costs of materials, as well as the secondary effects of supply chain uncertainty and port congestion due to product frontloading, to name a few.

For back order, special order or custom ordered products from China, any additional taxes, tariffs, or surcharges after the date of order that are assessed against the order will be charged. These charges, if any, will be added to the final invoice and must be paid prior to shipping the goods.

We recognize that all industries are feeling the pressure of these tariffs, and our commitment remains firm: to be a reliable partner for products, as well as a resource for unique insights into the various manufacturing industries we serve. Our goal is not only to provide top-quality stainless steel equipment but also to help businesses improve efficiency, reduce unnecessary expenses, and optimize their operations.

Preparing for the Effects of Tariff Increases

To help your business navigate these changes, here are several proactive steps you can take:

  • Evaluate Your Tax Harmonization Codes – Review the Harmonized Tariff Schedule (HTS) codes for all directly-imported goods to ensure they are classified correctly. Misclassified products could result in higher tariff rates, increasing your costs unnecessarily.
  • Understand the Tariffs That Affect Your Business – Stay informed about current and upcoming tariff changes on materials and equipment essential to your operations. Knowing when and how these costs are applied can help you plan more effectively.
  • Optimize Inventory Management – Consider adjusting your purchasing strategy to either buy in bulk before further tariff increases take effect, or consider moving to a 'just-in-time' delivery schedule to ensure more predictable cash flow. Additionally, assess alternative sourcing options that may be less impacted by tariffs.
  • Improve Process Efficiency – Reducing waste, improving workflow automation, and upgrading outdated equipment can help offset higher material costs by lowering operational expenses. On any large equipment purchases, make sure to work with an accountant or CPA to take full advantage of depreciation options available.
  • Work with Suppliers on Pricing Strategies – Open communication with your suppliers can lead to opportunities for negotiated pricing, bulk discounts, or alternative payment terms that help distribute costs more effectively over time.
  • Monitor Changes to Taxes, Surcharges, and Tariffs – Stay updated on evolving trade policies such as Section 321. The de minimis exemption which allowed one shipment of goods (per person, per day) valued at or under $800 to enter the U.S. duty-free, is being phased out for shipments originating from China. Businesses relying on low-value direct imports from China should prepare for the added cost of duties and import taxes. Glacier Tanks does not use this policy, but other companies or marketplaces (like Temu and Amazon) do, so be sure to keep an eye on costs and availability when shopping.

Moving Forward Together

At Glacier Tanks, we are dedicated to being more than just a supplier—we are your partner in efficiency and growth. While price adjustments may be inevitable, we will continue to do everything we can to minimize the impact and provide solutions that help your business adapt to changing market conditions.

If you have any questions or concerns about how these tariffs may affect your purchases, please reach out to our team. We are here to support you with industry insights, process optimizations, and high-quality products that stand the test of time.