In April 2025, the USA President, Donald Trump, called upon the International Emergency Economic Powers Act (IEEPA), declaring a national emergency and rolling out an overhaul of U.S. trade policy. Some measures include:
- A 10% tariff on all imports into the United States from April 5.
- Tariffs ranging from 11% - 50% now apply to 57 countries from April 9.
- Tariffs on critical construction and industrial materials such as steel and aluminium have been raised to 25%.
Although these have been put in place to strengthen American manufacturing and reduce dependency on imports, this has a global effect on supply chains, with industries such as construction, mining and oil and gas being heavily affected.
Across these sectors, procurement teams now have even more challenges than before: higher input costs, longer lead times and more pressure to diversify sourcing.
While these measures are centred in the U.S., the ripple effects are global. For companies like ours operating across diverse regions — from Africa to Australia — understanding and preparing for the global impact is now a business-critical priority.
This blog unpacks what these tariffs mean for procurement, project delivery, and customer strategy in some of the regions where we operate: Africa, the United Kingdom, Guyana, Kazakhstan, the United States, and Australia.
Africa
Africa’s infrastructure and mining sectors are heavily dependent on global supply chains for machinery and components. While the US tariffs aren’t directly imposed on African imports, many of their imports originate from Asia or pass through U.S.-linked supply chains.
- Short-term Gains: With China facing U.S. tariffs, surplus inventory and redirected exports could reach African markets at competitive rates.
- Long-term Concerns: Disruptions in global shipping, price instability, and potential inflation in the U.S., Chinese and U.S. suppliers could begin to realign their trade routes, logistics and delivery times, meaning Africa could be impacted.
- Dollar Dependence: Many African nations price imported goods in USD. With the dollar weakening and inflation rising, cost planning becomes increasingly difficult.
The balance between short-term procurement deals and long-term price stability. Customers may find short-lived cost advantages but must prepare for inflationary pressures and delivery disruptions. Now is the time to reassess supplier relationships and negotiate forward-looking contracts with currency and lead-time buffers.
United Kingdom
The effect of Brexit means the UK is still figuring out their role in global trade. With close ties to the U.S. and EU, the UK could face repercussions from U.S tariff policies.
- Higher Parts Costs: Many UK companies source goods from countries now subject to U.S. tariffs, which could indirectly increase costs for UK-made products.
- Procurement Realignment: UK-based corporations may pivot their sourcing strategies, which could affect regional operations in unexpected ways.
- Policy Misalignment Risks: Any conflict in regulatory or tariff strategy between the UK and the U.S. could create friction in trade flows.
UK-based teams should prepare for pricing instability and consider alternative suppliers within Europe and the Commonwealth.
Guyana
As Guyana ramps up its energy and infrastructure expansion, it relies heavily on imported equipment, much of which comes from the United States or global OEMS.
- Capital Risks: New tariffs mean U.S.-made drilling and offshore support equipment may now cost 10–50% more, potentially delaying timelines and exceeding budgets.
- Procurement Headaches: Tariffs on goods like steel fittings or control modules may affect the global contractors operating in Guyana.
- Financing and Risk: If U.S. partners pass on costs or slow delivery, projects may turn to alternative sources, including Europe or Brazil, shifting the procurement scene.
Customers should reassess equipment lead times and look at different sourcing models, possibly involving local content where feasible.
Kazakhstan
Kazakhstan, sitting at the crossroads of Europe and Asia, is closely tied to Chinese imports and Russian infrastructure partnerships.
- Chinese Shift: As China reroutes exports away from the U.S., Kazakhstan could see increased access to affordable Chinese machinery and materials.
- Currency Fluctuations: Regional economies like Kazakhstan could be affected by shifts in currency values, oil prices, and commodity movements.
Companies need to leverage potential supplier competition to negotiate better deals, but prepare for longer customs lead times. Engage in broader vendor analysis to identify more reliable Chinese or regional suppliers and prepare for shifts in customs protocols.
United States
With the tariffs in effect domestically, U.S.-based teams are already facing direct impacts.
- Across-the-Board Price Increases: With the blanket 10% tariff, nearly all imported materials, from basic construction inputs to advanced electronics, now carry higher price tags.
- Contract Re-evaluation: Procurement teams may need to renegotiate long-term supplier agreements or pass through additional costs to clients.
- Sourcing Shift: A reintroduced push for domestic manufacturing is emerging, but supply gaps and quality concerns may slow the transition.
The US region need to consider strategic stockpiling, renegotiating supplier terms, and tapping into domestic alternatives. Implement short-term procurement audits to identify tariff-heavy categories and re-evaluate supplier risk models.
Australia
Australia’s mining and energy sectors are highly dependent on global supply chains, particularly with Asia. While not directly targeted by U.S. tariffs, the effects will still resonate.
- Indirect Price Inflation: Australian companies sourcing U.S. or Chinese components may face cost hikes as tariffs change global pricing.
- Market Opportunity: As China expands its trading partners, Australia may benefit from increased demand for raw materials and agriculture.
- Logistics Concerns: Global shipping constraints and material shortages could affect timelines for projects in remote areas.
- China Factor: With China retaliating against the U.S. with stronger tariffs, Australia may become a more important partner or get caught in the middle.
Review all imported equipment dependencies — particularly U.S.-sourced — and secure local/regional alternatives where possible.
While these tariffs may seem like a U.S.-only issue, no region is protected when global supply chains are this interconnected. Procurement, engineering, and operations teams across the world will need to stay responsive, proactive, and aware.