Tariff Update: Steel and Aluminum Duties Double as Elevator Industry Faces Mounting Cost Pressures

July 2025 Update

The trade policy landscape has shifted dramatically since our last tariff analysis, with significant new developments affecting the elevator industry's cost structure and supply chain planning. Here's what elevator maintenance and modernization professionals need to know about the current tariff environment.

Major Policy Changes: Steel and Aluminum Tariffs Double

The most significant development for our industry came on June 4, 2025, when steel and aluminum tariffs were raised from 25% to 50% on imports from all countries (except the UK, which remains at 25% during ongoing trade negotiations). This represents a 100% increase in tariff costs for these critical elevator components.

The expanded tariff coverage now affects structural steel components including rails, guide systems, and frames, as well as aluminum fixtures and panels used in cab interiors and door systems. Steel derivative products such as cables, wire ropes, and counterweights also face the increased rates. Perhaps most significantly, the June 23, 2025 expansion extended these tariffs to household appliances containing steel and aluminum, demonstrating the administration's commitment to comprehensive coverage.

The expansion to household appliances signals the administration's intent to close loopholes and ensure tariffs apply comprehensively across steel and aluminum-containing products.

China Trade Relations: Complex but Stabilized

While U.S.-China tariffs peaked at over 125% earlier in 2025, the current landscape shows average U.S. tariffs on Chinese goods at 51.1% covering 100% of imports, while Chinese retaliatory tariffs on U.S. goods stand at 32.6% also applied comprehensively. A 90-day pause agreement provided temporary stability, though long-term uncertainty continues.

For elevator components specifically, control systems and electronics from China face substantial tariffs but remain more predictable than earlier in 2025. Precision manufacturing equipment continues to carry significant cost premiums, while technology integration components for smart elevator systems see elevated pricing throughout the supply chain.

Legal Challenges and Policy Uncertainty

The current tariff structure faces ongoing legal scrutiny, with the U.S. Court of International Trade ruling certain tariffs illegal in May 2025. The appeals process continues with oral arguments scheduled for July 31, while temporary stays allow tariffs to remain in effect during legal proceedings. This legal uncertainty adds another layer of complexity to long-term planning decisions.

Industry-Specific Cost Planning Strategies

Components severely affected by the 50% tariffs include elevator rails and structural components, door mechanisms and hardware, cab interior aluminum panels, control panel housings, and safety system components. Moderately affected items include Chinese electronics and controls facing approximately 51% average tariffs, European precision components subject to 10% base rates plus additional charges on steel and aluminum content, and specialized motors and drive systems with varying impact depending on their country of origin and material composition.

For immediate planning within the next six months, industry professionals should focus on locking in current pricing where possible before additional cost increases take effect, accelerating critical inventory acquisition for major modernization projects, reviewing contract language to address tariff cost fluctuations, and communicating proactively with clients about cost implications.

Medium-term strategies spanning six to eighteen months should include evaluating supply chain diversification beyond traditional sources, investigating domestic alternatives for high-volume components, considering timing flexibility for non-urgent projects, and building tariff escalation clauses into new contracts to protect against future increases.

Long-term planning extending beyond eighteen months requires partnering with suppliers developing tariff-mitigation strategies, investing in relationships with diverse global suppliers, monitoring policy developments that could affect future costs, and evaluating vertical integration opportunities for critical components to reduce dependence on imported materials.

What Hasn't Changed: Quality and Safety Standards

Despite significant cost pressures from tariffs, the elevator industry's fundamental commitment to safety and quality remains absolutely paramount. Tariff-related cost increases cannot and must not compromise code compliance and safety standards, preventive maintenance schedules, component quality and reliability, or professional installation and service standards. These core principles define our industry's integrity and public trust.

Looking Ahead: Policy Uncertainty Continues

Several factors will continue to influence future tariff policies, including ongoing legal challenges to tariff authority, trade negotiations with various international partners, economic performance indicators that may affect policy decisions, and industry lobbying efforts seeking specific exemptions for critical components.

Potential upcoming changes on the horizon include copper import tariffs under consideration for August 2025, additional "derivative product" expansions that could affect more components, bilateral trade agreements that might provide selective relief for certain countries or products, and court decisions that may force significant policy modifications or reversals.

The current tariff environment represents the most significant trade policy shift affecting the elevator industry in decades. With steel and aluminum tariffs doubled to 50% and comprehensive China tariffs exceeding 50%, cost planning has become more complex and critical than ever before.

The key takeaways from this analysis show that steel and aluminum costs have effectively doubled due to tariff increases, Chinese component costs remain elevated but more stable than earlier in 2025, economic uncertainty requires flexible planning and strong supplier partnerships, legal challenges create additional policy uncertainty, and quality and safety standards must be maintained despite cost pressures.

Success in this environment requires proactive cost planning with tariff considerations built into project budgets from the outset, strong supplier relationships across diverse geographic sources to provide alternatives and flexibility, clear client communication about cost drivers and timing options to maintain trust and transparency, and professional expertise to navigate increasingly complex supply chain decisions that balance cost, quality, and delivery requirements.

For current pricing and project planning assistance that accounts for the latest tariff impacts, contact Keystone Elevator at 781-340-3860 or service@keystoneelevator.com.