If changes and additions to tariffs have your head spinning, you’re not alone.
New developments this summer may require manufacturers to reassess financial strategies and revisit their machine shop business plan. But we don’t want to get lost in all the details or caught up in speculation; instead, we want to focus on what’s known and actionable.
To cut through the noise, we spoke with Omar Nashashibi, founder of Inside Beltway and manufacturing advocacy expert, to better understand what manufacturers should expect in the months ahead. While nothing is set in stone at present, Omar’s message is this: uncertainty remains around the details, but the timing of new tariffs is taking shape; that gives manufacturers an opportunity to prepare for what’s to come.
Context: The Shift from Section 122 to Section 301
On February 20th, 2026, President Trump announced the use of Section 122 of U.S. trade law to implement a temporary tariff structure. These tariffs, currently set at 10% across most countries, went into effect on February 24th and are scheduled to expire at midnight Eastern on July 24th, 2026.
What happens on or before July 24th?
By that July 24th deadline, the administration is expected to transition toward Section 301 tariffs, which are more targeted and potentially more impactful.
Unlike Section 122, Section 301 tariffs focus on specific countries and industries and could result in significantly higher rates. Currently, there are active investigations covering more than 80 countries, with a focus on manufacturing sectors and industrial inputs.
What Could Be Impacted?
Machinery and inputs
One of the biggest concerns for manufacturers is that these tariffs may directly impact the tools and inputs they rely on.
Countries specifically cited include:
- Germany
- Japan
- South Korea
- Switzerland
- Taiwan
These are key sources for machine tools and equipment used in the precision machining sector. If new tariffs are applied here, rates could exceed the current 10%, and they could be implemented quickly.
Beyond machines
While machine tools are a major concern, the scope of these tariffs could be broader. Potentially affected imports include:
- Packaging materials like cardboard
- Shop supplies and components
- Other production inputs sourced overseas
What about raw materials?
Some materials like steel, aluminum, and copper are already covered under existing tariffs. These are currently subject to Section 232 tariffs, often at rates as high as 50%. Because of that, the upcoming tariffs may not significantly impact those specific materials, but other metals and inputs could still be affected.
Will This Be A Repeat of Last Year?
Last year, manufacturers experienced sudden tariff increases that created immediate challenges. While news about Section 301 might feel like a repeat of last year’s timeline, there’s one key difference: This time, you have advance notice.
Tariff changes are expected in early to mid-July, potentially before the July 24th deadline. This comes at a time when manufacturers are managing summer shutdowns and operating with reduced staff due to vacations. Layering tariff changes on top of that could create disruption if you’re not adequately prepared.
To answer the question: No, this will not be a repeat of last summer, as long as you begin taking action soon.
What Should Manufacturers Do Now?
Don’t wait to start planning
Don’t wait for tariffs to hit before taking action. Instead, start by asking:
- Where is our business most exposed to imported goods?
- Which of my suppliers could be affected?
- How might pricing or lead times change?
Communicate with customers and vendors
Last year, many shops were caught off guard. This year, you have a known window of time. Be sure to use it! Discuss potential cost impacts with your customers and talk to your suppliers about sourcing strategies.
Stay engaged with the industry
You don’t have to navigate this alone. NTMA members who are in the know are already having conversations about lessons learned last summer and strategies that could set them up for success this summer.
Consider:
- Reaching out to fellow members in your network
- Discussing approaches on NTMA Connect, NTMA’s online platform
- Getting involved in NTMA’s advocacy efforts, joining Omar and others to represent the industry on Capitol Hill and ensure policymakers understand the real-world impact of their decisions
Prepare for the known unknowns
The exact details of the next round of tariffs are still unfolding, but the deadline is known. With a likely July rollout, manufacturers can prepare in advance. The shops that evaluate risk and leverage their network will be in a far stronger position than those who wait for the next announcement to drop.
Are you making the most of your NTMA membership? Now’s the time to engage!
