Navigating the implications of President Trump's tariff plan for the water industry
What to know
- Baseline 10% tariff will be implemented on April 5, 2025, at 12:01 a.m. ET.
- Reciprocal tariffs will be implemented on April 9, 2025, at 12:01 a.m. ET.
- Tariffs on imported goods may directly impact the water industry.
President Donald Trump signed an executive order for a new tariff plan on April 2, 2025, following a speech that took place in the rose garden. During the speech, President Trump announced baseline tariffs of 10% on all imports into the United States. Reciprocal tariffs were placed on countries with which the U.S. has significant trade deficits.
When do the tariffs go into effect?
- Baseline tariff: The baseline tariff on all imports will be implemented starting April 5, 2025, at 12:01 a.m. ET. Reciprocal tariffs: The additional tariffs on specific countries will be implemented on April 9, 2025, at 12:01 a.m. ET.
Survey: Impact of Trump’s new tariffs on your business
President Trump’s newly implemented tariffs, announced on April 2, are set to reshape global trade. We’re eager to understand how companies like yours are adapting and planning for the future. Share your thoughts using the link below.
What do the tariffs mean for the water industry?
The tariffs have the potential to significantly impact the water industry from all angles, including infrastructure costs, supply chain disruptions, workforce and increased costs for equipment and materials.
Infrastructure and workforce
Almost all utilities operate on a budget. Increased costs due to tariffs may eat into this budget and delay critical upgrades to facilities. Similarly, if operating on a reduced budget, workforce training and development may be reduced. Potential financial strain from tariffs could discourage hiring and wage growth.
Equipment and materials
Utilities receive equipment, materials and chemicals from all over the world. This includes things like:
- Pipes
- Pumps
- Valves
- Membranes
- Chemical treatments
The tariffs will make importing these items more expensive for utilities. These increased costs could translate into higher utility rates and budget constraints.
President Trump's executive order included tariff exemptions for some products, including a variety of chemicals, some steel and aluminum products and automotive parts. The chemicals listed in the exemption are not directly used by the water industry, however some of them may be manufactured with, or from, some of the listed chemicals.
Supply chain
If the new tariffs drive up costs, or cause supply shortages, water utilities may face delays in maintenance and critical infrastructure projects. Replacement parts could become more difficult to source.
How to navigate through the tariffs
The implication of the tariffs is to reduce trade deficits and boost American manufacturing. The feasibility of this implication will only be understood with time. Domestic manufacturers may ramp up production of water components to meet demands, but this will take time.
It is possible to seek alternative suppliers in countries that are less affected by tariffs, but this transition could be costly and slow.
Seeking new routes of funding to offset costs may become fundemental, especially for smaller utilities.
Full list of tariffs
The full table of "reciprocal tariffs" displayed during Trump's speech. 'Tariffs charged to the USA' are Trump-defined and "include currency manipulation and trade barriers."
Source: White House, The Guardian.
About the Author
Alex Cossin
Associate Editor
Alex Cossin is the associate editor for Waterworld Magazine, Wastewater Digest and Stormwater Solutions, which compose the Endeavor Business Media Water Group. Cossin graduated from Kent State University in 2018 with a Bachelor of Science in Journalism. Cossin can be reached at [email protected].