RS is actively monitoring recent changes in U.S. trade policy, including newly implemented tariffs on imported components and materials. While these changes are beyond our control, we are doing everything possible to minimize the impact on our customers while adhering to the law and the requirements of our manufacturing partners and suppliers. Rest assured; we remain dedicated to serving our customers. We will continue to monitor the U.S. government’s tariff lists and their impact on our mutual supply chain. As these policies continue to evolve, we are committed to working closely with our manufacturing partners and suppliers to navigate any potential impacts. Various mitigation avenues are being considered, and more information will be available once we have evaluated all options.
Our team is preparing for the potential impacts of tariffs both internally and with our vendor community. We are actively engaged in discussions with our suppliers and industry tariff experts to understand how we can mitigate the impact on our customers. Actions include:
- We are proactively engaging with our suppliers to ensure that we minimize the risk of both increased prices but also supply chain issues.
- Identifying suppliers and inventory that can be crossed and sourced to support reduced price and risk, including utilizing our own brand, RS PRO.
- Equipped our sales team with tools to help identify possible part issues and provide alternative products to offer customers to help mitigate risk.
- Reviewing our stock positions to identify areas where we can improve pricing due to volume commitments.
As part of our tariff response planning, we are committed to collaborating across our supply chain on solutions that comply with the latest U.S. trade policy outcomes. Our focus is to ensure we are up to date with the changes and requirements of this complex and ever-changing environment so we can minimize impacts to our customers and support supply chain viability. Where we have been charged for tariffs, we must recover the costs. Tariff decisions made by suppliers will be represented in our billing rates.
As a result of the tariff changes, our team is taking steps to support our customers. We are working closely with our suppliers to understand impacted product identification as well as alternative Certificate of Origin (COO) product potentials. When possible and without affecting our fulfillment obligations, we will seek to provide our services in ways that do not incur tariffs. Where there is no alternative, we will have to recover these tariffs by passing the costs through to the customer. We will continue to manage this scenario to minimize possible price/cost impact for our customers.
Due to most recent tariff communications and rising raw material prices rising amid tariff uncertainty, we expect to see prices across the board to rise. Commodity prices continue to increase significantly, largely due to uncertainties around trade policies and tariffs imposed by the administration. While the full scope and impact of tariffs are not fully known, the pricing and availability of commodities will likely continue to be affected in the near term. Factors such as supply and demand, geopolitical events, and economic conditions also contribute to price changes. While the exact impacts across our core markets and vendor community are not fully known yet, impacts should be expected in most areas with an increased risk of disruption and logistical complexity.
Our team is preparing for the potential impacts of tariffs both internally and with our vendor community. We are actively engaged in discussions with our suppliers and industry tariff experts to understand how we can mitigate the impact on our customers. Actions include:
- Communicating demand/forecasting as early as possible and as far out as possible so there is no disruption.
- Review and acceptance of our identified cross-referenced, alternative products and materials.
- Provide accurate scheduled need by dates which will minimize disruption and ensure accurate prioritization.
- Protect the supply chain by avoiding large over-purchases which can cause incorrect demand spikes and will negatively impact future availability.
With the fast-moving nature of the tariff-related developments, we assure you that we will continue monitoring the situation and adapt to evolving changes to best position us to continue providing high-quality products at cost-effective pricing. As with the prior tariffs and other government directives, we will continue to engage with our customers and suppliers to implement changes while minimizing disruption within the supply chain. Based on our experiences beginning in 2018, we have put many processes in place. As we work through these global challenges together, RS will continue to be transparent and focused on working closely with our customers and suppliers to help navigate these challenging times. We appreciate your partnership as we adapt to these changes together. Our team is here to support you.
Disclaimer: Our information is compiled from several sources that, to the best of our knowledge and belief, are accurate and correct. It is always our intent to present accurate information. RS accepts no liability or responsibility for the information published herein. These materials are provided for informational use only and do not, nor are they intended to, constitute legal advice. Customers should not take, or should refrain from taking, any action based on any information contained in this alert without first seeking independent legal advice.
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