Water Utility Management

Navigating the implications of President Trump's tariff plan for the water industry

April 3, 2025

President Trump signs executive order for new tariff plan, imposing baseline tariffs of 10% on all imports and reciprocal tariffs on specific countries.

Alex Cossin

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President Donald Trump signed an executive order for a new tariff plan on April 2, 2025, following a speech that took place in the rose garden. During the speech, President Trump announced baseline tariffs of 10% on all imports into the United States. Reciprocal tariffs were placed on countries with which the U.S. has significant trade deficits.

When do the tariffs go into effect?

Baseline tariff: The baseline tariff on all imports will be implemented starting April 5, 2025, at 12:01 a.m. ET.

Reciprocal tariffs

What do the tariffs mean for the water industry?

The tariffs have the potential to significantly impact the water industry from all angles, including infrastructure costs, supply chain disruptions, workforce and increased costs for equipment and materials.

Infrastructure and workforce

Almost all utilities operate on a budget. Increased costs due to tariffs may eat into this budget and delay critical upgrades to facilities. Similarly, if operating on a reduced budget, workforce training and development may be reduced. Potential financial strain from tariffs could discourage hiring and wage growth.

Equipment and materials

Utilities receive equipment, materials and chemicals from all over the world. This includes things like:

Pipes
Pumps
Valves
Membranes
Chemical treatments

The tariffs will make importing these items more expensive for utilities. These increased costs could translate into higher utility rates and budget constraints.

President Trump's executive order included tariff exemptions for some products, including a variety of chemicals, some steel and aluminum products and automotive parts. The chemicals listed in the exemption are not directly used by the water industry, however some of them may be manufactured with, or from, some of the listed chemicals.

Supply chain

If the new tariffs drive up costs, or cause supply shortages, water utilities may face delays in maintenance and critical infrastructure projects. Replacement parts could become more difficult to source.

How to navigate through the tariffs

The implication of the tariffs is to reduce trade deficits and boost American manufacturing. The feasibility of this implication will only be understood with time. Domestic manufacturers may ramp up production of water components to meet demands, but this will take time.

It is possible to seek alternative suppliers in countries that are less affected by tariffs, but this transition could be costly and slow.

Seeking new routes of funding to offset costs may become fundemental, especially for smaller utilities.

Full list of tariffs

The full table of "reciprocal tariffs" displayed during Trump's speech. 'Tariffs charged to the USA' are Trump-defined and "include currency manipulation and trade barriers."

Source: White House, The Guardian.

About the Author

Alex Cossin | Associate Editor

Alex Cossin is the associate editor for Waterworld Magazine, Wastewater Digest and Stormwater Solutions, which compose the Endeavor Business Media Water Group. Cossin graduated from Kent State University in 2018 with a Bachelor of Science in Journalism. Cossin can be reached at [email protected].