Surviving The Tariff Squeeze – Is Efficiency The Best Defence For US Manufacturers?

Surviving The Tariff Squeeze – Is Efficiency The Best Defence For US Manufacturers?

In a recent blog, we explored the potential implications of a second Trump term for industrial sectors. Just months into his return to the White House, many of those forecasts are taking shape. President Trump has rolled out sweeping tariffs, beginning with a blanket 10% on all imports and escalating duties on goods from major trading partners such as China, Mexico and the European Union.

For discrete manufacturers, the impact is immediate. Tariffs have driven up costs for steel, aluminium, semiconductors and mechanical components. This is placing considerable pressure on margins in sectors like automotive, electronics and industrial machinery. With limited ability to pass those costs on to customers, manufacturers are being forced to look inward for strategies to remain competitive.

One of the most direct responses to these challenges is to revisit supply chain planning. As global sourcing becomes more unpredictable and expensive, many firms are adopting advanced supply chain optimization and planning software. These platforms allow teams to simulate tariff impacts, evaluate alternative sourcing options and improve overall supply chain resilience. In today’s environment, a more agile and responsive supply chain is essential to preserving profitability.

However, managing sourcing complexity alone is not enough. To remain competitive in the face of persistent cost pressures, manufacturers must also focus on operational efficiency. There is a huge variety of industrial technologies that decision-makers may adopt to help drive meaningful cost reduction and performance improvement.

On the factory floor, MES (manufacturing execution system) solutions from providers such as Critical Manufacturing, Rockwell Automation, Siemens and Tulip are enabling manufacturers to gain real-time visibility into production activity. These tools allow operations teams to track throughput, reduce scrap, optimize scheduling and respond quickly to disruptions. With input materials becoming more expensive and less predictable, MES provides the control manufacturers need to maximize resource use and stabilize output.

At the asset level, APM (asset performance management) solutions from vendors such as ABB, AspenTech, AVEVA, GE Vernova and Prometheus Group are helping reduce unexpected failures and extend equipment lifespan. With tariffs raising the cost of imported machinery and spare parts, minimizing unplanned downtime has become a financial priority. By enabling predictive maintenance through condition monitoring and AI-led analytics, APM tools help firms maintain operational continuity while lowering long-term capital costs.

Industrial data management platforms are also emerging as a critical component of the efficiency toolkit. These systems aggregate data from production lines, sensors and enterprise software, enabling better informed decision-making using AI. With better insight into energy use, cycle times and material consumption, manufacturers can identify incremental improvements that lead to significant cost savings at scale.

This push for agility is not unique to discrete manufacturing. In the pharmaceutical sector, organizations are also confronting tariff-related pressures. Pharmaceutical manufacturers are adopting similar strategies to ensure supply continuity and maintain quality standards, including diversifying suppliers and enhancing internal visibility. Although the specific operational risks may differ, both industries share a need for greater control, responsiveness and digital maturity.

Trump’s evolving tariff policy is reshaping global manufacturing dynamics and putting pressure on firms to rethink how they manage costs and risk. Those that combine smarter supply chain planning with technologies like MES, APM, AI-based production optimization software and industrial data management will be better positioned to navigate uncertainty and maintain competitiveness. In this environment, efficiency is not just about optimization – it is a fundamental strategy for long-term resilience.