Why Importing High-Volume Standard Fasteners Still Makes Sense — Even With a 25% Steel Tariff (and “retaliatory” tariffs)
In March 2025, the U.S. government reinstated a sweeping 25% tariff on imported steel, accompanied by a range of retaliatory tariffs impacting numerous categories of manufactured goods, including fasteners. For many in the industrial supply chain, this has understandably raised questions about whether sourcing from overseas manufacturers is still a smart play—especially for high-volume standard fasteners.
The short answer? Yes.
Despite the added cost pressures, importing fasteners from established overseas producers—particularly those in Taiwan—continues to be more cost-effective in many cases than buying domestically. Here's why:
1. Lower Base Manufacturing Costs Overseas
Even with the tariff, overseas manufacturers typically maintain a significant cost advantage due to:
Lower labor costs
Economies of scale from large-scale, high-efficiency production facilities
Cheaper raw material sourcing from within their own regions
The 25% tariff applies only to the steel content or in some cases to the finished goods themselves—not to the labor or overhead costs. So while the landed cost has increased, the delta between U.S. and overseas pricing remains in favor of importers for most standard fasteners.
2. Shortfall in Domestic Infrastructure
The U.S. simply does not have the infrastructure in place to support the full reshoring of fastener manufacturing at the volume, variety, and speed the market requires.
Aging equipment in many U.S. plants is not optimized for modern high-volume production.
Skilled labor shortages in manufacturing make it difficult for domestic producers to ramp up output efficiently.
Limited vertical integration means many domestic fastener companies rely on imported steel wire rod, dies, tooling, or finishing chemicals themselves.
Additionally, the network of domestic suppliers needed to support fastener production—from tool-and-die shops to plating and coating specialists—has diminished over decades of offshoring. Rebuilding that supply chain would take years, not months.
For standard fasteners that require consistency, scale, and rapid fulfillment, the current domestic ecosystem is simply not built to compete.
3. Established Supply Chains & Vendor Relationships
Many importers and distributors have long-standing relationships with overseas manufacturers. These relationships lead to:
Volume-based pricing discounts
Favorable credit terms
More reliable lead times than often assumed
Established quality control systems, including third-party inspections prior to shipment
Switching to domestic suppliers often means starting from scratch in terms of vetting quality, negotiating terms, and aligning on delivery expectations—not to mention potentially paying a premium for untested performance.
4. Domestic Capacity Constraints
There’s a simple reality: U.S. manufacturers do not have the capacity to supply all the standard fastener demand at high volume. The domestic fastener industry has, for decades, focused more on specialty and low-volume runs, leaving commodity fasteners—hex bolts, washers, machine screws, and others—to be produced abroad.
Attempting to source all fasteners domestically can result in:
Production bottlenecks
Longer lead times
Significantly higher pricing due to limited competition
5. Customization & Flexibility from Overseas Partners
Fastener factories such as those in Taiwan are often more flexible when it comes to:
Packaging options
Private labeling
Custom plating or finishes
Non-standard sizes or tolerances
These value-add services are bundled into a competitive price, giving distributors more ways to differentiate themselves in the marketplace—something that’s harder to achieve with domestic suppliers focused on standard, catalog items.
6. Global Sourcing as a Strategic Hedge
In uncertain times, diversified sourcing can be a strategic advantage. Importing from overseas—even with tariffs—allows businesses to:
Balance costs between foreign and domestic sources
Adapt quickly to supply chain shocks in either region
Reduce dependency on a single supplier base
Rather than going all-in on domestic production, savvy distributors use global sourcing to optimize price, lead time, and risk exposure.
Yes, the 25% tariff changes the math—but it doesn’t erase the advantages of importing high-volume fasteners from overseas. For many businesses, especially those dealing in standardized or commodity-grade products, the landed cost of importing—even with tariffs—is still lower than buying domestically.
The key is working with trusted suppliers, maintaining efficient logistics, and passing value along the supply chain wherever possible. In a competitive, margin-sensitive industry like fasteners, cost matters—and importing still delivers.
If you’re looking to navigate these changes or need help sourcing reliable overseas manufacturers, contact us. We’ve been doing this for years—and we know how to keep your costs down without compromising quality.