Few manufacturers and distributors are making a bold, customer-first decision in light of the new tariffs: absorbing the impact of tariffs instead of passing them along to their buyers. This strategy reflects not only financial resilience but a deep commitment to long-term partnerships—helping customers stay competitive and profitable even in turbulent times.

Tariffs Are Back—But Not Everyone’s Passing the Cost

As global trade tensions escalate and new rounds of tariffs hit industries across the board—particularly in manufacturing, electronics, and automation—many suppliers are faced with a choice. Some raise prices immediately to protect their margins. Others, however, are taking a different path: they’re choosing to absorb the costs themselves, at least temporarily, to shield customers from price hikes and disruption.

This isn’t an easy choice. Absorbing tariffs requires operational efficiency, strategic foresight, and often thinner profit margins. But the payoff is powerful—it builds trust, loyalty, and long-term customer retention.

SMC Corporation Sets the Standard

A standout example is SMC Corporation, a global leader in pneumatic and electric actuator solutions. Despite the pressure of increased tariffs on imported industrial components, SMC has committed to not passing those costs on to their customers. Their extensive product range—including air cylinders, grippers, electric actuators, vacuum components, and control systems—remains competitively priced.

These tariff-absorbed SMC products are available through Automation Distribution, a trusted partner for automation components and system integration. By offering SMC’s high-performance automation solutions without the additional financial burden of tariffs, Automation Distribution is helping manufacturers and machine builders stay profitable and maintain project momentum.

Loyalty in Action: A Partnership Mindset

When a distributor or manufacturer like SMC chooses not to pass on the cost of tariffs, they’re showing more than business acumen—they’re demonstrating a partnership mindset. They understand that their customers are facing the same inflationary pressures, labor shortages, and margin challenges.

By holding pricing steady, they’re essentially saying, “We’ve got your back.” That kind of commitment builds customer loyalty—and earns it.

Helping Customers Stay Profitable

Tariffs can have a ripple effect across the supply chain. From higher material costs to longer lead times, profitability is under pressure. Manufacturers and distributors that absorb these costs are actively helping customers stay in the black:

• Protecting project budgets – Stable pricing allows customers to bid competitively and deliver without financial surprises.
  
• Minimizing downtime – Predictable costs support smooth procurement and supply chain continuity.
  
• Strategic confidence – Customers know their partners are in it for the long haul, not just the next invoice.
  

These Are the Partners Worth Sticking With

In moments like these, the market separates transactional suppliers from true partners. The companies choosing to absorb tariffs—like SMC and Automation Distribution—are making short-term sacrifices for long-term gains. That’s not just good business. That’s good character.

So if your supplier is holding the line on pricing, recognize it for what it is: a signal of strength, trust, and dedication to your success. They’re earning your business every day—and they deserve to keep it.

Final Thought...
When the market tightens, loyalty matters more than ever. Choose to do business with the partners who choose to stand with you—like SMC and Automation Distribution. Contact us today to make your plan.