Can ChatGPT help navigate tariffs? by Kyle Nix
How can Industrial Valve Distributors help customers with Tariffs? Let’s ask ChatGPT and grade its answers.
Over the past several months there have been two topics that consistently come up whenever people talk about the future of business—tariffs and AI, and the PVF industry is no exception.
While everyone is aware of the ways in which tariffs effect our industry (more on that below) AI is still mostly an unknown quantity to many in PVF. Though it is already being put to use in piping design with AI algorithms helping to create efficient pipe layouts. Recommending the most suitable pipe materials based on pressure, temperature, and fluid type. AI is also helping engineers predict potential failures in pipes, valves and fittings before they occur by monitoring data like vibration, pressure, and temperature.
Considering some of these breakthroughs and value adds, could it be possible that AI might also help navigate tariffs? First a little background.
For all of us in the valve side of the PVF industry, the one question we are being asked more than any other is about the impact of new tariffs, and for good reason. The proposed additions to Section 301 and Section 232 on steel and aluminum, both major valve industry inputs, could raise prices by anywhere from 8% to 25% or more depending on what happens next.
President Trump also has plans to impose tariffs on Canada and Mexico, in addition to doubling the 10% universal tariff charged on imports from China.
As of this writing, many valve manufacturers with operations in China or components coming from there have already announced price increases of anywhere from 3-10% based on the additional tariff on imports from China, and distributors are passing these increases through to the end users leading to speculation that capital projects and turnarounds could be postponed or cancelled.