Steel and aluminium prices are under pressure, and global trade tensions, including recently introduced US tariffs, are complicating the landscape for storage rack manufacturers. As these materials form the backbone of warehouse racking systems, these changes are rippling through the industry, potentially leading to higher costs, supply chain delays and pricing challenges.
So, what exactly has changed—and how can manufacturers and warehouse operators respond effectively?
A Closer Look at the New Tariffs
On 2nd April 2025, US President Donald Trump announced a sweeping new 10% baseline tariff on nearly all imports, which came into effect on 5th April 2025. Additional country-specific tariffs followed on 9th April 2025, including a 125% total tariff on goods from China, 20% on EU imports, and 10% on goods imported from the UK. These tariffs are layered on top of the reinstated Section 232 tariffs—25% on steel and 25% on aluminium—reintroduced on 11th February 2025, after the removal of all exemptions and exclusions.
Data and Statistics are sourced from: The Guardian, The White House.
The intention is to protect US domestic production and reduce reliance on international suppliers. However, for UK-based storage rack manufacturers who rely on imported steel and aluminium, these global trade tensions can lead to higher raw material costs and supply chain disruptions. Fortunately, we at Stakapal source our steel and aluminium locally and are unaffected by these US tariffs, offering a stable and cost-effective solution for businesses navigating this challenging environment.
The Impact on the Storage Rack Manufacturing Industry
Higher Production Costs
The direct consequence of these tariffs is a sharp rise in raw material costs. Steel and aluminium are essential to warehouse racking systems, and sourcing them has become both more expensive and less predictable. Manufacturers now face additional delays and compliance requirements, compounding the challenge.
Supply Chain Disruption
Beyond just cost, supply chains are being tested. Delays in material arrivals mean extended lead times for manufacturing and installation—creating potential knock-on effects for clients planning warehouse upgrades or new builds. In some cases, price fluctuations have reached between 10–34%, depending on origin and volume. The total cost increase due to tariffs and market adjustments can be significant, with tariffs alone reaching up to 125% for Chinese goods.
How to Navigate the Tariff Storm
Partner with UK-Based Manufacturers
Working with a domestic supplier, such as Stakapal, offers several advantages in this shifting economic environment. As a UK manufacturer, Stakapal is unaffected by U.S. trade policies and provides a more reliable and cost-stable solution for racking systems. With reduced delivery times and a deep understanding of SEMA regulations and UK compliance standards, partnering with a local expert ensures quality and continuity.
As a full manufacturing member of SEMA all our racking solutions including Cantilever Racking and Pallet Racking are designed and manufactured following SEMA and Health & Safety at Work 1974 racking regulations.
Strengthen Procurement Strategies
Now is the time to reassess your procurement approach. Securing long-term contracts can provide price stability before tariffs lead to further increases. Fixed pricing agreements and bulk ordering options also help businesses lock in more favourable rates and avoid volatility.
Maximise Existing Storage Infrastructure
Instead of defaulting to new system investments, consider optimising your current setup. Redesigning layouts, increasing storage density, or upgrading to improve capacity and performance can be done without the cost of a complete replacement. Regular maintenance also ensures longevity, keeping systems efficient for longer.
What Lies Ahead
While no one can predict exactly how long these tariffs will remain in place, it is clear they are here for the foreseeable future. The combination of American protectionism and global supply chain uncertainty suggests that steel and aluminium costs will remain high and unpredictable. For UK-based businesses, the smartest approach is to localise sourcing and work with partners who can offer price security and robust delivery schedules.
Stay Ahead with Stakapal
With the latest tariffs shaking up the industry, now is the time to take control of your warehousing costs. Stakapal stands ready to support businesses through these uncertain times with UK-manufactured racking solutions that are competitively priced, compliant, and built to last.
Please Note: This blog post is intended to provide general insight into the global tariff changes affecting the storage rack manufacturing industry. All data, figures, and policy details mentioned are accurate at the time of writing (April 2025). However, given the rapidly evolving nature of international trade and policy, readers should verify any figures and consult up-to-date sources before making business decisions.
Concerned about rising racking costs?
Stakapal offers cost-effective warehouse storage solutions to help businesses navigate new tariffs. Contact us today to learn more.
