Global trade tensions, including new US tariffs, complicate the landscape for storage rack manufacturers. Steel and aluminium prices face pressure. These materials form the backbone of warehouse racking systems. Consequently, changes ripple through the industry, potentially raising costs, delaying supply chains, and creating pricing challenges.
So, what has changed? How can manufacturers and warehouse operators respond effectively?
Tariff Changes - Examining the Latest
US President Donald Trump announced a 10% baseline tariff on nearly all imports on Wednesday 2nd April 2025. It took effect on Saturday 5th April 2025. Additional tariffs followed on Wednesday 9th April 2025: 125% on Chinese goods, 20% on EU imports, and 10% on UK imports. These build on the reinstated Section 232 tariffs: 25% on steel and 25% on aluminium, reintroduced on Tuesday 11th February 2025, after dropping exemptions.
Data and Statistics are sourced from: The Guardian, The White House.
The goal? Protect US production and cut reliance on foreign suppliers. However, for UK-based manufacturers using imported steel and aluminium, costs rise and supply chains falter. Fortunately, S.E.M.CO sources locally. Thus, we avoid US tariff impacts, delivering stable, cost-effective racking solutions.
How Tariffs Affect Storage Rack Production
Higher Production Costs
These tariffs directly spike raw material costs. Steel and aluminium, vital for racking systems, now cost more and vary in availability. Manufacturers also face delays and compliance hurdles, worsening the situation.
Supply Chain Disruption
Beyond cost, supply chains struggle. Material delays extend lead times for manufacturing and installation. As a result, warehouse upgrades or new builds face setbacks. Price swings hit 10–34%, depending on source and volume. Tariffs alone can boost Chinese goods costs by up to 125%.
Tariff Turbulence Tackled
Partner with UK-Based Manufacturers
Teaming up with a UK supplier like S.E.M.CO brings benefits in this shifting economy. Untouched by US trade policies, S.E.M.CO offers reliable, cost-stable racking systems. Plus, shorter delivery times and SEMA expertise ensure quality and continuity.
Strengthen Procurement Strategies
Now is the time to rethink procurement. Long-term contracts lock in price stability before tariffs climb higher. Additionally, fixed pricing and bulk orders secure better rates and dodge volatility.
Maximise Existing Storage Infrastructure
Rather than buying new systems, optimise what you have. Redesign layouts, boost storage density, or upgrade for more capacity—all without replacement costs. Regular maintenance also extends system life, keeping efficiency high.
The Future Beyond the Tariffs
No one knows how long these tariffs will last. Yet, they seem set to stay for now. American protectionism and global uncertainty suggest steel and aluminium costs will remain high and unstable. Therefore, UK businesses should source locally and partner with firms offering price security and solid delivery.
Thrive with S.E.M.CO’s Solutions
The latest tariffs disrupt the industry. Thus, now is the moment to manage warehousing costs. S.E.M.CO provides UK-made racking solutions: affordable, compliant, and durable.
Please Note: This post offers general insights into tariff changes affecting storage rack manufacturing. All data and policy details are accurate as of April 2025. However, trade evolves fast—verify figures and check current sources before deciding.
Worried about rising racking costs?
S.E.M.CO delivers cost-effective storage solutions to tackle new tariffs. Contact us today.
