n Monday 18 August, 2025, the Trump administration took steps within Section 232 to expand the scope of its 25% tariffs on steel and aluminium components exported from Britain to the US to include all finished goods. This latest wave of US tariff changes will affect the power generator sector worldwide, suggest analysts. The introduction of tariffs on imported goods, including engines, alternators, and control systems, will lead to higher costs for generator manufacturers and end-users. This includes a rise in prices for commercial and industrial generators, as well as for parts used to build or assemble generators domestically. The impact is expected to be significant, affecting the commercial and industrial generator market, and businesses will need to be prepared for the chang
In recent months, the U.S. government has introduced a series of broad tariffs on imported goods from dozens of countries. While some of these duties have been temporarily reduced or delayed, the overall effect is clear: higher costs, tighter supply chains, and more uncertainty for companies that rely on power equipment. If you are procuring backup or prime power generators, these tariffs will impact you in some way. The time to prepare is now.
The United States depends heavily on imported commercial and industrial generators. In 2023, approximately $5.1 billion worth of generators were imported. Of those, about 24% came from Mexico, and 18% from China. While the U.S. does have strong domestic generator manufacturing, a significant portion of key components, such as engines, alternators, and control systems, are sourced internationally. The tariffs being implemented act as a tax, increasing the cost of generators across the board.
The U.S. also imports many of the parts used to build or assemble generators domestically. Items like diesel engines, control panels, circuit breakers, voltage regulators, and many other raw materials and parts often come from overseas and are now subject to tariffs. This means even U.S.-assembled generators are going up in price due to the rising cost of imported components.
As tariffs raise prices, demand for domestic or already-imported generators is spiking. Data centres, healthcare facilities, telecom networks, and industrial operations are all ramping up generator procurement.
UK-based JCB has suggested "punitive" US tariffs on finished goods containing steel and aluminium will cost it hundreds of millions of pounds. JCB’s chief executive Graeme MacDonald reports that the equipment it exports annually to the US each year would be hit by the expanded Section 232 tariffs. He told the media: "The tariffs as they now stand are hugely punitive and they catch every machine that we ship to the US,” Macdonald said. “It will make us have to reconsider how we trade with North America.”
JCB has urged the UK government to negotiate an exemption for JCB and look for leniency for the UK when it comes to the new tariffs.
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