How Current Tariffs Impact the Elevator Industry: Rising Costs and Maintenance Considerations

At Keystone Elevator, we understand that keeping your building's vertical transportation systems operating efficiently depends on reliable maintenance, timely modernization, and strict adherence to inspection and compliance protocols. However, recent changes in the international trade landscape—specifically the implementation of significant tariffs between the United States and Canada—are creating new challenges for our industry and potentially affecting the cost structure of elevator maintenance and modernization services.

Steel and Aluminum Tariffs

Elevators rely heavily on steel and aluminum due to their strength, durability, and versatility. Many elevator components in the US market reflect a complex global supply chain. While certain parts are fully manufactured domestically, they often incorporate imported raw materials like aluminum from Canada or steel from various global sources. For example, control panels might be assembled in American factories, but use imported circuit boards or aluminum casings. Conversely, some specialized components—such as certain high-performance motors, precision guide rails, or proprietary door mechanisms—are imported as finished products, especially from manufacturing centers in Europe or Asia where specific expertise has been developed over decades. This hybrid manufacturing approach means that tariffs can affect costs across the board, even for "Made in USA" components that rely on imported materials, while also directly impacting the price of fully imported parts that have no domestic alternative.

In early 2025, the United States implemented substantial tariffs affecting trade with several countries. Most significantly for the elevator industry:

• On March 12, 2025, the U.S. imposed a 25% tariff on imports of steel and aluminum products from all countries, including Canada.

• The US initially imposed a 145% tariff on China, although on May 12th announced the reciprocal tariffs would be reset to 30% during current negotiations.    

• The US has a 10% tariff for finished goods with the European Union, but you also need to factor in the aluminum component in the finished product.

For example, if an elevator door is imported from the European Union and it is comprised of 50% aluminum, the door would face a 10% tariff on the entire value of the door plus a 25% tariff on the aluminum component so in total a 22.5% tariff.  While there are certain exemptions to these tariffs, the important takeaway is costs will be on the rise until trade deals can be reached.

How Elevator Components Are Affected

Elevators contain numerous components made from materials now subject to these tariffs:

Steel Components:

• Elevator rails and guide systems

• Structural supports and framing

• Door systems and mechanisms

• Cables and wire ropes

• Counterweights

Aluminum Components:

• Cab interiors and panels

• Door frames

• Control panels

• Structural elements in modern designs

Oil and Lubricant Considerations: While petroleum products like lubricating oils were initially expected to face tariffs in some of the trade disputes, they have largely been exempted from the current tariff structure. However, the manufacturing and transportation costs associated with these products may still be indirectly affected by broader economic impacts of trade tensions.

Cost Implications for Building Owners and Managers

Direct Material Cost Increases

The 25% tariff on steel and aluminum directly affects the cost of replacement parts and components used in elevator maintenance and modernization projects. These increases are particularly significant for:

1. Major Component Replacements: Controllers, motors, door operators, and safety systems often require substantial amounts of steel and aluminum

2. Modernization Projects: Complete system upgrades involve significant material costs that will reflect the tariff increases

3. Regular Maintenance: Even routine replacement parts like door hangers, rollers, and control board components will see price adjustments

Indirect Cost Factors

Beyond the direct impact on material costs, tariffs create several indirect cost pressures:

1. Supply Chain Disruption: Manufacturers and suppliers may face challenges in material sourcing, potentially leading to delays and additional costs

2. Inventory Management: Companies may need to maintain larger inventories to hedge against price volatility, increasing overhead costs

3. Economic Uncertainty: Trade tensions contribute to market volatility, potentially affecting capital investment decisions and maintenance budgeting

Strategies for Managing Increased Costs

Preventive Maintenance Focus

In an environment of rising material costs, preventive maintenance becomes even more valuable. Regular, thorough maintenance can:

• Extend the lifespan of existing components

• Reduce the frequency of major replacements

• Identify potential issues before they require costly emergency repairs

Phased Modernization Approaches

Rather than undertaking complete modernization projects all at once, building owners might consider phased approaches:

• Prioritizing critical safety systems first

• Scheduling upgrades over multiple budget cycles

• Focusing on components with the greatest efficiency or reliability improvements

Long-Term Service Agreements

Establishing long-term service agreements with trusted elevator maintenance providers like Keystone Elevator can help:

• Lock in more predictable pricing

• Ensure priority service during times of supply chain stress

• Develop customized maintenance schedules that optimize component lifespans

Compliance and Safety Considerations

Despite cost pressures, safety and compliance remain non-negotiable priorities. Building owners should note:

• Code-required safety inspections cannot be deferred due to cost concerns

• Equipment approaching the end of its useful life may require modernization regardless of current market conditions

• Safety-critical components should never be compromised by seeking substandard alternatives

How Keystone Elevator Is Responding

At Keystone Elevator, we are committed to helping our clients navigate these challenging market conditions:

1. Transparent Pricing: We provide clear information about how tariff-related costs affect specific services and components

2. Efficient Maintenance: Our technicians are trained to maximize the value of every maintenance visit, identifying ways to extend component life when possible

3. Strategic Planning: We work with building owners to develop long-term maintenance and modernization strategies that align with budget realities

4. Alternative Solutions: Where appropriate, we can recommend alternatives that maintain quality and safety while managing costs

Conclusion

The current tariff situation presents real challenges for the elevator industry and building owners alike. However, with strategic planning, preventive maintenance focus, and partnership with experienced service providers, these challenges can be effectively managed. At Keystone Elevator, we remain committed to providing the highest quality repair, maintenance, modernization, and compliance services while helping our clients navigate the evolving economic landscape.

For more information about how tariffs might affect your specific elevator maintenance or modernization needs, contact our team at Keystone Elevator today.

This blog post is intended for informational purposes only and does not constitute financial or legal advice. Tariff situations are subject to change, and building owners should consult with appropriate financial and legal professionals regarding their specific circumstances.