Like many different industries, stakeholders within the additive manufacturing (AM) sector are carefully monitoring discussions round tariffs and the way they could affect their companies. At Wohlers Associates, powered by ASTM Worldwide, now we have determined to offer a short pulse on the trade, paired with a brief evaluation, to assist the broader AM group place itself extra successfully in response to tariffs — and probably flip these challenges into alternatives.
This text is structured in two sections. The primary gives a short geographical evaluation of tariff impacts — in different phrases, how and to what extent numerous international locations could also be affected. The second part presents an anonymized abstract of our conversations with a couple of gamers within the AM trade. Discussions resulting in the event of this text have been carried out on the finish of April 2025. In consequence, among the data and statistics included are topic to vary, particularly given the fluid and evolving nature of tariff-related insurance policies.
Whereas this report represents a small-scale effort and primarily focuses on implications for U.S. corporations, now we have aimed to channel and replicate a spread of viewpoints. Relying on the extent of curiosity and suggestions from the AM group, there could also be potential to broaden this work additional.
Information evaluation
Determine 1 illustrates the distribution of U.S. imports of AM machines by nation of origin in 2024. This consists of all varieties of AM methods — metallic, polymer, concrete, sand, ceramic, and so forth. As proven, Germany, China, and Israel have been the highest three exporting international locations to the U.S. in 2024, with whole imports valued at roughly $625 million (supply: UN Comtrade).
Nonetheless, considering the affect of tariffs paints a unique image, since export of AM machines could also be topic to completely different tariff therapies relying on the nation of origin. For example, Canada and Mexico are seemingly exempt because of the United States-Mexico-Canada Settlement (USMCA), below which most qualifying items are tariff-free. In distinction, many different international locations face both country-specific or normal tariffs.
Determine 2 exhibits the breakdown of about $118 million in new tariff income that will be hypothetically collected if the proposed tariff charges (as of Could 15, 2025) have been utilized to 2024 AM machine imports. China and Germany would each account for the lion’s share at simply shy of $92 million. This extra tariff income would end in a mean 30% enhance in the price of Chinese language machines imported to the U.S, and a mean 20% enhance in the price of German machines. It is necessary to notice that these values assume tariffs wouldn’t affect purchaser habits—a simplification that doesn’t replicate real-world dynamics however permits for a clearer comparability of the potential magnitude of the tariffs.
Pulse of the U.S. AM Trade
The affect of tariffs is multifaceted and perceived in another way relying on an organization’s place within the AM ecosystem. Most corporations are presently in a “monitoring mode,” making an attempt to grasp the precise implications of the tariffs relatively than implementing vital enterprise adjustments. Whereas quick motion (like shifting buy orders) just isn’t broadly noticed but, there may be vital planning, mapping of potential situations, and requesting of quotes occurring. Corporations wish to perceive their choices and have contingency plans of their “again pocket”.
Past direct value implications, tariffs and associated geopolitical components just like the push for reshoring are seen as creating each considerations and alternatives. Some view tariffs and provide chain disruptions as a possibility for AM to additional current itself instead answer, enabling companies to avoid conventional provide chain points and enhance enterprise. You will need to word that the current tariffs are perceived by some as one other layer of volatility on prime of great value will increase skilled for the reason that starting of COVID-19. These will increase (typically 10-40% in a 12 months) impacted uncooked supplies, parts, and companies, and have been a serious focus for companies lengthy earlier than the present tariff discussions grew to become distinguished.
Then again, many have expressed considerations concerning potential implications of current tariff developments. Under is the record of major considerations that have been highlighted in our discussions with gamers within the AM trade:
- Uncertainty: The present scenario is characterised by chaos and uncertainty, making it troublesome for corporations to execute long-term buying and funding selections. The identical chart—Determine 2—that was beforehand introduced would have proven a totally completely different breakdown of tariffs collected from completely different international locations simply ten days earlier, on Could 5. Not solely did the entire estimated tariff income decline by almost 60%—from $280 million to $118 million between Could 5 and Could 15—however the implications of the sooner tariff ranges would have had a major affect on the polymer AM market within the U.S. Contemplating that 56% of polymer AM machines imported into the U.S. in 2024 got here from China, the upper tariff percentages at the moment would have considerably elevated the price of these machines. In consequence, many American corporations looking for to broaden their polymer AM capability would have confronted a troublesome alternative: soak up greater prices by persevering with to depend on Chinese language methods or shift to home or much less closely tariffed international options. Nonetheless, inside simply ten days, the tariff outlook—and its potential affect—shifted dramatically. As of Could 15, not solely is the projected tariff income a lot decrease, however the penalties for the polymer AM market seem far much less extreme. This illustrates the excessive diploma of volatility and uncertainty presently surrounding U.S. tariff coverage discussions.
- Workflow disruption: The broad imposition of tariffs is problematic for U.S. corporations that depend on imported printers. For instance, the qualification necessities, particularly for demanding sectors like medical, aviation, and protection, are sometimes machine-specific, and AM machines will not be simply interchangeable because of the complicated, multi-variable nature of the AM course of. Sustaining entry to know-how from international locations like Germany, Israel, and Japan is seen essential for enabling home U.S. manufacturing. Tariffing spare elements and inputs (like metallic powders, plastics, wire) from China can be problematic, particularly if home provide is inadequate.
- Complacency: A possible long-term threat is that protectionist insurance policies would possibly result in complacency in Western industries, permitting China’s well-funded and fewer constrained AM sector to additional surpass Western know-how sooner or later.
Winners and Losers
Figuring out clear winners and losers is troublesome given the uncertainty, primarily as a result of the precise tariff degree issues. Anecdotal proof suggests {that a} 10% tariff may not result in adjustments in buying habits or mixture of suppliers, however a 25% tariff may set off shifts. Regardless of these uncertainties, some views emerged.
The U.S. home manufacturing base is anticipated to be the larger winner in the long run. For corporations closely concerned within the U.S. aerospace, protection, and area sectors with necessities comparable to “Purchase American”, the direct affect of tariffs has been minimal to this point. Whereas such corporations might supply a few of their enter supplies (together with feedstocks) from non-U.S. sources, tariffs have but to trigger a major change of their insurance policies or enterprise methods. Nonetheless, it must be famous that some analysts disagree with this assertion and don’t view the strengthening of the U.S. home manufacturing base as a possible end result of imposing new tariffs.
Moreover, this era might be a really useful time for U.S.-based service bureaus and contract producers. If a non-U.S. producer wants a fast answer for manufacturing within the U.S. as a result of tariffs, outsourcing to a contract producer with present capability is the most probably path, as constructing a brand new facility takes years. Profitable contract producers who can win these alternatives by serving to now have the potential for steady enterprise. The mindset of producers is to not continuously swap suppliers, so as soon as a contract producer is accepted and performing nicely, they’re more likely to retain the enterprise even when the tariff scenario adjustments sooner or later.
AM corporations able to shifting manufacturing to the U.S. might significantly profit from these tariffs – a development that has already begun, albeit for a totally completely different purpose: eligibility to work with the U.S. Division of Protection.
Then again, corporations closely reliant on printers or alternative elements from international locations focused by U.S. tariffs (e.g., Europe, Israel) or inputs from China might face challenges except waivers or different sourcing are secured. For instance, service bureaus and contract producers that supply their feedstock from China and function at a low margin might discover the monetary viability of their companies in danger.
Recommendation for AM Companies
A number of items of recommendation have been supplied for corporations navigating this surroundings:
- Wait and see: Keep away from overreacting or making hasty selections earlier than totally understanding the implications of the altering tariff panorama.
- Diversification: Diversify your buyer portfolio to keep away from being overly reliant on one or two companies or sectors, which may be closely impacted by exterior insurance policies or market fluctuations. Contemplate diversification on the availability facet as nicely.
- Give attention to the proper difficulty: Tariffs are an actual drawback however should not be the highest concern for a lot of AM corporations. There’s a concern that some corporations would possibly use tariffs as an excuse for failing to satisfy their forecasts, relatively than acknowledging inner points. Finally, corporations ought to deal with the issues they’ll management, such because the reliability and repeatability of machines, high quality, and repair ranges, relatively than exterior components like tariffs.
- Authorities work: If pursuing enterprise with the U.S. authorities (DoD, DOE, NASA, and so forth.), remember that there’s vital concern about Chinese language-manufactured merchandise, and the desire to not use Chinese language tools, even when modified. Our interviewees suggested startups to keep away from investing in Chinese language printers if focusing on this market. Corporations with present Chinese language tools might face challenges and thorough opinions.
- Change administration: Corporations with an agile, resourceful, and change-oriented mindset are finest positioned to navigate the volatility and discover alternatives, no matter their measurement. Conversely, these which can be sluggish to adapt or caught in conventional methods of pondering (“that is how we have all the time completed it”) might battle. Management high quality is essential.
- Advocate for coverage: Have interaction with policymakers both straight or by means of organizations comparable to AM Coalition to coach them concerning the nuances of the AM trade. Advocate for insurance policies that assist home manufacturing and normal adoption of AM.
The general sentiment from this engagement with the AM trade is that whereas tariffs current challenges and uncertainty, the underlying development in direction of home manufacturing and the inherent advantages of AM (pace, flexibility, provide chain resilience) provide vital alternatives for the trade if navigated strategically and supported by acceptable insurance policies. To maneuver these alternatives and this complicated scenario, Wohlers Associates gives not solely probably the most complete information and evaluation on the AM market, however the advisory companies to help in making use of that perception. Go to wohlersassociates.com to be taught extra.
Authors
Mahdi Jamshid, PhD, Director of Market Intelligence at Wohlers Associates, powered by ASTM Worldwide | wa@wohlersassociates.com
Pablo Enrique, PhD, Additive Manufacturing Supervisor at Wohlers Associates, powered by ASTM Worldwide
