Making business decisions is never easy. With the potential upcoming tariffs on imported products proposed by President-Elect Donald Trump, many businesses are deciding whether or not they should make maintenance purchases or install new systems before tariff prices go into effect.
How Do Tariffs Work?
Tariffs are taxes that are placed on imports. The government imposes these taxes on companies that import goods to a country. While importers technically pay tariffs, consumer prices on goods are typically increased with the imposition of tariffs.
What’s the Tariff Situation?
United States President-Elect Donald Trump has announced that he plans to impose tariffs on imported products from countries outside of the US. In his previous presidential term, Trump imposed various tariffs on products like steel and aluminum, including tariffs on products arriving from China. Now that his second term as President is set to start in January of 2025, many businesses are weighing their options and considering whether purchasing compressed air products and equipment before these proposed tariffs are enacted will save them money.
While these tariffs are not guaranteed to go into effect, given Trump’s history of imposing tariffs on imports, there is no reason to believe these new tariffs will not be enacted in his upcoming term. The impact of these tariffs is also still up in the air; their influence on imports and consumer prices will likely depend on how the tariffs are structured and if certain import categories are exempt.
Should You Buy Before Tariffs Are Imposed?
Knowing whether or not to purchase parts or even install new systems altogether is a choice that is highly dependent on your system’s requirements, the state of your application, and the trajectory of your business, as well as your ability to make immediate purchases based on your finances.
- How Costly Are the Parts You Need?
- If the parts you are considering purchasing for your system are already costly, it may be smart to purchase replacements before prices are set to increase. On the other hand, if your replacement parts are already inexpensive, it’s unlikely the upcoming tariffs will increase prices enough to break the bank.
- How Regularly Do You Replace Parts?
- When considering stocking up on replacement parts for your system, look at your maintenance and parts replacement history. If you find that there are parts you need to replace consistently, buying those products before tariffs are enacted may be a good idea since you already know you will require them at some point.
- How Old Are Your Parts and Systems?
- If your parts or systems have been in use for a while and are likely to need replacing, purchasing replacements before prices rise will save you money in the long run. If your systems are brand new, there’s no reason to rush into buying another new system or parts that likely won’t need to be repaired or replaced for a considerable amount of time.
- Do You Have the Budget for New Parts or Systems?
- Perhaps most importantly, take a look at your business’s current finances. While buying parts or products before prices increase may be a smart decision, it isn’t always practical for businesses to make ‘extra’ purchases in anticipation of a price rise. Don’t make any hasty decisions that could significantly impact your venture’s financial situation.
ESA Can Help
The experts at ESA can help you better understand what parts or systems you may want to buy now before prices increase and what purchases can wait. Our expert technicians have decades of experience in the industrial sector and are used to helping clients make decisions regarding their operations. Whether you need help deciding on the purchase of, maintenance or repair, parts, or would rather get help selecting a new system, the ESA professionals can help.
The best part? We’re available 24/7. Our team always has phones ready to answer calls and address your questions or concerns. We can also schedule free inspections of your equipment to help ensure you’re getting the products you need when you need them.
Getting a third-party opinion regarding what purchases you may need to make for your operation to continue running smoothly gives many business owners peace of mind when making those purchases. We want the best for our clients, and we’ll tell you honestly what you should consider purchasing and what you can wait on. When it comes time to make those repairs or install replacements, we’re also happy to take care of that. Years of experience set our technicians apart from the rest, along with our commitment to making installation and repairs as quickly and cost-effectively as possible for our customers.