Potential Tariff Impact on Transformers

Back in 2019, before the COVID-19 pandemic, reasonably priced electrical transformers took only a few months to order and arrive in the hands of line workers, who installed them throughout the distribution network. 

Fast forward to today, and prices and order times have skyrocketed. The average pad-mount transformer (that little green box in your neighbourhood) has increased in price by an estimated 450%, and wait times have gone from a couple of months to, at times, over two years. 

What is the cause of this? Shortages of raw materials like iron ore, aluminum and steel, limited companies that process the specialized components required, and labour pressures have all contributed. And now, with proposed tariffs from President Trump on raw materials once more, the electric industry may be looking at a repeat of the last few years. 

Some industry estimates indicate tariffs will increase transformer costs by 20%, and utilities will likely be forced to pass on these costs to the ultimate consumer, the ratepayer. As for wait times? It’s hard to say. The only thing we know for sure is that it won’t help.