Tariff Impact on Testing and Verification- 2025

The above proverb applies to business in general and supply chains specifically. The best time to create a resilient supply chain is when it is developed. The next best time is before the traumas, such as tariffs, hit. More likely, though, we will be pressed into reaction, maybe. Our businesses must consider their contribution to the state of the supply chain and manufacturing. In the press to create the best value proposition. We can either be proactive and predictive or tap dance or tango through the metaphorical mine field resulting from a risk coming to fruition.

Tariffs are reshaping the global landscape for testing and verification activities, particularly in industries that rely on imported test equipment and materials. The “tariff impact testing” phenomenon drives costs, disrupts supply chains, and forces organizations to rethink risk management and procurement strategies. [i] [ii] [iii] [iv]

How Tariffs Affect Testing and Verification

Equipment acquisition costs will increase the testing costs. On the positive side, the scale of the impact might not be so high, and the equipment may not be a consumable. Tariffs on imported lab equipment, electronic components, and raw materials have led to:

Increased operational costs: Testing labs and manufacturers face higher prices for essential equipment and consumables, such as microscopes, glassware, semiconductors, and specialized chips. [v]
Supply chain disruptions: Delays and unpredictability in sourcing critical test equipment and materials from China, Mexico, and Canada.[vi]
Budgetary pressures: Organizations must cut or delay testing and verification activities, which can potentially compromise product quality and compliance. [vii] [viii]

High-Risk Areas in Tariff Impact Testing

The world’s volatility is not a recent phenomenon. It is easy to predict after the event, after the fact. We can undoubtedly say that tariffs could and even may happen, a question of probability. Specialty equipment and test equipment can be unique, and may come from one of these regions where tariffs are especially damaging.

Electronic Components and Test Equipment

Semiconductors, PCBs, and precision instruments sourced from high-tariff countries are now significantly more expensive.[ix] We know product development friends who obtain their prototype PCBs from China due to quick turnaround times and low cost.
Industries such as electronics, automotive, and aerospace are especially vulnerable due to their reliance on global supply chains.

Lab Consumables and Scientific Instruments

Glassware, pipettes, and reagents from China, Switzerland, and the EU are subject to steep tariff hikes, straining research and quality assurance budgets.[x]

Outsourced Testing Services

Software and QA testing outsourced to countries like China, India, and Mexico face higher costs, potentially pricing out smaller firms and causing delays in product releases. [xi] [xii]

Compliance and Safety Risks

Cost pressures may lead some companies to delay or reduce safety testing, increasing the risk of product recalls, liability, and the proliferation of counterfeit goods. [xiii] [xiv]

Strategies to Mitigate Tariff Impact Testing Risks

We refer the reader back to the start of the Chinese proverb at the beginning of this post. If we truly wanted to avoid this event, we would have worked out alternatives long before the threat of tariffs. That is not to suggest that we need to enact those alternatives, but we should have developed other options and followed up to ensure they are available when needed.

Substitution materials: For volatile components, we can seek substitution materials.[xv]
Diversify supplier base: Seek alternative sourcing from countries with lower tariffs or develop local supplier relationships.[xvi] [xvii]
Invest in automation: AI-driven test automation and remote audits can help offset rising labor and equipment costs. [xviii] [xix] [xx]
Scenario planning: Determine direct and indirect tariff exposures, and develop contingency plans for high-tariff scenarios.[xxi]
Enhance compliance controls: Implement robust internal controls to avoid noncompliance and unexpected cost increases.[xxii]
Bundle and tier services: Offer flexible testing and verification packages to accommodate clients facing budget constraints.[xxiii]

The Future of Tariff Impact Testing

The “tariff impact testing” environment will likely remain volatile as trade policies evolve. Companies that proactively adapt—by investing in technology, diversifying supply chains, and strengthening compliance—will be best positioned to maintain quality and competitiveness in the face of ongoing tariff challenges. [xxiv]

The Role of P&P Materials Price Index in Tariff Impact Testing

The P&P Materials Price Index (Paper and Packaging Materials Price Index) plays a critical role in understanding the broader implications of tariffs on testing and verification activities. As tariffs on raw materials like paper, packaging, and related commodities increase, the downstream effects on industries reliant on these materials become more pronounced.

Key Insights on P&P Materials Price Trends:

Rising Costs Across the Board

In 2025, the P&P (Pulp/Packaging and Paper) Materials Price Index reflects an average annual increase of 7%, driven by higher production margins rather than demand growth.[xxv] This trend exacerbates the cost challenges for industries dependent on packaging materials for testing and shipping purposes.[xxvi]

Tariff-Driven Inflationary Pressures

Tariffs imposed on imports from key trading partners, such as Canada and Mexico, are amplifying price increases for paper and packaging materials. For instance, a 25% tariff on resin imports used in packaging production has forced manufacturers to either absorb the costs or pass them on to consumers, further inflating the index.[xxvii]

Impact on Testing and Verification Activities

Even if the final product comes from a non-tariffed region, any material originating from a tariffed region will increase costs and pose availability challenges. Specialty equipment, such as testing equipment, may require specialty packaging.

Strategies to Mitigate P&P Material Price Risks:

If we were treating these things as risk, we would already have plans in place to engage, but most likely, we are responding to circumstances that are no longer a risk.

Optimize Material Usage: Reduce waste by adopting lean packaging and material consumption practices. Ideally, independent of tariffs, we are a lean performing organization with continuous improvements underway.
Explore Alternative Suppliers: Source materials from regions unaffected by tariffs or with lower cost structures.
Invest in Recyclable Materials: Shift to sustainable, recyclable alternatives to offset long-term costs while meeting environmental standards.

The P&P Materials Price Index is vital for monitoring how tariffs influence input costs across industries. By understanding these trends, companies can better prepare for the ripple effects of tariff-induced inflation on their testing and verification activities.

Summary

A combination of price indices, supply chain metrics, operational cost benchmarks, and macroeconomic indicators provides a comprehensive view of how tariffs shape the US testing landscape. Monitoring these indicators is essential for proactive risk management and strategic planning in the era of tariff impact testing. However, reworking an entire supply chain is not a quick undertaking. By the time we see these emerging tell-tales, we are on our way to difficulties, perhaps. It might be time to reconsider our hyperfocus on cost to the exclusion of other factors, including reliance and the long-term viability of businesses within the country.

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