The victory of Donald Trump in the 2024 US presidential election means tariffs potentially will play an increasingly important role in shaping the global economy up to 2029, with consequences for the pipe repair products industry.
Under the previous Trump administration, the United States imposed a range of tariffs on goods imported from various countries, including China, Europe and other trade partners.
On the reelection campaign, Trump frequently promised to use tariffs again as tools for protecting American manufacturing, securing US borders and agreeing deportations of those whom the incoming president-elect deems to be in the country illegally.
China appears to be at the forefront of Trump’s plans again, alongside Canada and Mexico. The two nations bordering the US, whom Trump claims are not doing enough to prevent people and drugs entering America.
Whilst the Trump administration believes tariffs can be used to help the US, they will have far-reaching effects on the global economy – including pipe repair products being imported and exported by America.
Pipe repair: A crucial industry in the US
Pipe repair products encompass a wide variety of materials used to repair and maintain pipes across various industries. They are found in construction, water management and the vast oil and gas sector, responsible for 12.3 million American jobs and $1.6 trillion in federal and state tax revenue since 2015.
These products include pipe fittings, joint compounds, sealants, support clamps and a range of pipe repair kits designed to extend the lifespan of piping systems.
The US is both an importer and exporter of pipe repair products. POW-R Wrap are an American brand and one of the most well-known across the global pipe repair industry.
There is also a huge market for importing products like pipe repair bandages and epoxy putties from China, taking advantage of strong Chinese manufacturing capabilities and cheaper prices. Something which the Trump administration hope tariffs can help prevent.
Any change in trade policy and tariffs may significantly affect prices, supply chains and the competitiveness of the pipe repair industry.
The effect of Trump tariffs on pipe repair imports to the US
The last time Trump implemented tariffs aimed at China, importers of pipe repair products faced increased costs.
If the same happens again, importing materials such as composite wraps could come with a 25 percent tariff. This makes products more expensive to get into the US.
These additional costs will either have to be absorbed by the companies themselves or passed onto US consumers in the form of higher prices.
In turn, this may slow the growth of industries reliant on affordable repair materials. If the oil and gas sector is spending 25 percent more to repair and maintain pipelines because of tariffs, its profits decrease and with it the amount of federal and state tax it pays.
Tariffs also create uncertainty in global supply chains. US businesses currently sourcing pipe repair products from China will need to navigate the complexities of higher Trump tariffs, customs delays and price fluctuations.
Resourcing alternative supplies and adjusting purchasing strategies is no straightforward task. It may lead to potential shortages and delays in the availability of key products whilst the process takes place.
If Chinese pipe repair products become too costly to import, industry may instead look to other countries with lower tariffs for importing into the US.
Like Sylmasta. They manufacture the SylWrap pipe repair bandage range in the United Kingdom. If the Trump administration maintains low tariffs on pipe repair products coming into the US from the UK, then importing from Great Britain becomes an alternative to China.
The effect of Trump tariffs on pipe repair exports from the US
Whilst the Trump administration want to introduce tariffs on imports, there is bound to be notable effects on the US export market.
Last time, countries like China retaliated with their own set of tariffs on US goods. If the same happens again, US pipe repair products like POW-R Wrap may not be able to compete price wise outside the US with non-US brands.
Take Canada, for example. Trump puts a 25 percent tariff on goods from Canada going into the US. The government in Ottawa responds with their own 25 percent tariff on goods from the US coming into Canada.
Any companies working in the vast Canadian oil and gas industry currently using an American brand may seek a European alternative like SylWrap without such a high tariff.
Should demands for US pipe repair products shrink, it will result in a significant reduction of their share of the market.
Declining revenue coming into the American pipe repair market is not just bad news for the economy and company bottom lines.
The US is one of the most innovative nations when it comes to investing in pipe repair research and development.
Less money available to the sector may lead to reduced investment as companies are forced to scale back operations, causing long-term hurt to the pipe repair industry.
Potential benefits of Trump tariffs on pipe repair products
Although increased tariffs are certain to lead to higher costs and trade tensions, there are a few factors which could soften their impact on the pipe repair industry.
The repositioning of global supply chains is no bad thing. When China shutdown during the Covid-19 pandemic, it became apparent just how reliant the world was on Chinese manufacturing.
Within the pipe repair industry, Europe suffered an epoxy putty stick shortage because almost all of its supplies came from China.
As well as manufacturing their own pipe repair bandages, Sylmasta responded to the supply problems by investing in the latest epoxy putty stick manufacturing technology.
They are now believed to be the only company producing their own epoxy putty sticks in Europe. Should another issue mean imports from China are impacted, the supply chain is now diversified to cope.
Trump tariffs may also push nations closer to negotiating trade deals, benefitting businesses in the countries involved.
The Phase One Trade Deal was signed between the US and China during the previous Trump administration in response to the tariffs and trade war between the two.
Further trade agreements could be struck between the US and Canada, Mexico or China if Trump introduces tariffs – benefitting the pipe repair industry.
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