Tariff FAQ
Learn how Protolabs is helping customers navigate the tariff landscape
What are tariffs and how do they affect the landed cost of parts?
Tariffs are taxes levied on imported goods by governments, and they are usually expressed as a percentage of the cost of those goods. For example, if a part is made in the United States, it will not incur a tariff, but if the same part is imported from another country for which a tariff is in place, the cost of the part would increase by an amount determined by current U.S. trade policy.
What factors affect the amount of an imposed tariff?
In today’s international trade climate, tariff percentages are based on the:
- Country of manufacture
- Raw materials used to manufacture the part, including the amount and their origin
- End-use purpose of the part. In many cases, prototypes can be exempt, while production parts or final product assemblies would incur full imposition of tariffs
At Protolabs, we manage and estimate tariff impact up front so you know your total cost at time of order. As tariffs shift, we carry the risk for you by committing to a fully loaded price for our products manufactured globally.
How have tariffs affected Protolabs?
Protolabs comprehensive approach to digital manufacturing includes both U.S.-based, company-owned factories and a global network of highly-vetted and actively managed manufacturers. This diversity of manufacturing both stateside and abroad makes us uniquely equipped to navigate today’s tariff landscape.
As a domestic manufacturer, Protolabs’ factories serve as a manufacturing partner from prototyping to production with unmatched speed, quality, and reliability throughout. Each of these steps in the product life cycle benefits from a proactive material sourcing strategy that can swiftly respond to geopolitical challenges such as tariffs.
Our global network of manufacturers remains geographically diverse as we collaborate with highly qualified partners across the globe. While current tariff conditions have impacted some regions, our unique approach has led to a rich network of partners in regions less affected by tariffs.
Meanwhile, we are committed to full-service customer care in sourcing manufacturing abroad. For example, our team navigates classifications and Customs on your behalf to deliver a fully-landed cost during the quoting process, as opposed to adding duties, taxes, fees, and tariffs to your invoice further down the timeline.
What supply chain alternatives does Protolabs offer to minimize the impact of tariffs and support customers?
First, it’s important to understand that the recent round of tariffs continues to evolve. We have been working to implement sourcing and pricing strategies to offset the affect of tariffs through both Protolabs’ owned factories and the Protolabs Network.
Protolabs Factories:
While Protolabs benefits from domestically sourced materials unaffected by tariffs, we also employ an agile sourcing strategy to respond in times of tariffs or supply chain disruption. If there is a tariff-related cost impact, it will be communicated in the quoted cost.
Protolabs Network:
Protolabs has worked diligently to diversify our manufacturing network across the globe. Each partner is vetted and actively managed. This effort has led to only a small portion of our manufacturing partners being affected. Additional details include:
- Protolabs Network 3D printing is predominantly done domestically, eliminating tariffs
- Network partners in tariff-impacted regions offer a range of capabilities, ranging from prototyping, which is currently exempt from tariffs, to production volumes
- For CNC-machined parts, Protolabs continues to build highly-vetted manufacturing partners in regions less affected by tariffs so as to remain cost-competitive
We will be fully transparent in keeping you informed if your parts will be affected by tariffs. For example, Protolabs can provide fully-landed costs, inclusive of customs and tariff impacts, at checkout so you aren’t surprised with additional costs after your part has shipped.
How can Protolabs help you?
Injection Molding
- Factory: For companies turning to production part suppliers in tariff-impacted regions such as China or Mexico, Protolabs provides domestic manufacturing through its U.S.-based, company-owned factories, which offer a breadth of capabilities at production volumes.
- Network: We continue to add manufacturing partners with expanded capabilities in regions not affected by tariffs.
CNC Machining
- Factory: Multiple factories based in the U.S. provide quick-turn CNC machining at volume. Furthermore, Protolabs' proactive material sourcing strategy provides agility in sourcing of materials to reduce overall cost impacts. We can provide reliable service and quality parts quickly.
- Network: Protolabs’ full-service customer service team will help customers assess the product type and project to identify the right supplier while limiting any tariff-related impacts. Transparent, comprehensive pricing information will be communicated throughout the quoting process.
3D Printing
- Factory: We offer domestic 3D printing and deliver unmatched timelines with a wide range of technologies, with any tariff concerns limited to minor material costs.
- Network: U.S.-based manufacturing partners offering additional capabilities with expanded pricing options are accessible today.
Sheet Metal Fabrication
- Factory: Protolabs’ sheet metal fabrication factories are based in the U.S., offering industry-leading capabilities. Material costs also benefit from our proactive sourcing strategy, limiting any pricing impacts.
- Network: We continue to add manufacturing partners with expanded capabilities in regions not affected by tariffs.
If you have further questions, please email us at customerservice@protolabs.com or call us at 877-479-3680.