Tariffs are sparing no one, regardless of revenue size.
PMMI Business Intelligence
As trade tensions persist and tariff policies fluctuate, OEMs remain on a precarious tightrope—balancing cost pressures, maintaining customer trust, and planning for an uncertain future. According to PMMI’s July 2025 Quickie Survey on Tariffs, a staggering 82.8% of respondents reported that recently imposed tariffs have had a direct impact on their businesses. For OEMs, this is more than just a statistic—it’s a signal of industry-wide disruption and the pressing need to adapt.
PMMI Business IntelligenceThe survey, which gathered responses from PMMI member companies across various revenue ranges, paints a clear picture of the widespread effects. From the smallest firms with annual revenues under $10 million to industry giants with annual revenues exceeding $250 million, nearly all respondents cited increases in the cost of imported parts, with 86.1% reporting this as their primary challenge. Domestic parts were not immune either, with 45.8% noting cost hikes on locally sourced components.
More impactful than the actual tariffs are the uncertainty they create, with survey respondents indicating that customers are reluctant to place orders, capital expenditure is more scrutinized, and projects are being delayed. This sentiment echoed throughout the survey, revealing a nervous marketplace where ambiguity in trade policy leads to hesitancy among both OEMs and their customers.
Despite the turmoil, there are glimmers of proactive strategy. Dual sourcing and supply chain diversification emerged as the top response when companies were asked how they plan to mitigate costs once tariffs stabilize. Across all revenue levels, 85% indicated a move toward diversifying suppliers—a clear shift toward long-term resiliency. Some companies are exploring manufacturing relocation or redesigning components to avoid tariffed parts altogether.
Still, these strategic pivots come at a cost. Increased lead times, lost sales, and internal delays were all cited as collateral effects. Even among larger OEMs with dedicated teams tracking trade policy, the unpredictability of tariff announcements complicates planning and budgeting. Adaptability is no longer optional; flexibility, transparency, and strategic sourcing will be essential tools in weathering tariff-related volatility. Whether these challenges spark a new era of domestic innovation or further entrench global dependencies remains to be seen—but for OEMs, adaptability is no longer optional. It’s the new business imperative.
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