News! Beat The Tariff Crunch: Implement Rental-Focused Strategies to Maximize ROI Amidst Economic Turbulence 

Just as we put the last significant global supply chain disruption (COVID-19) behind us, we face yet another global crisis. International markets experienced a massive hit in early 2025 due to the recent imposition of heavy trade tariffs. 

As the news broke, rental business owners knew what the near future looked like: Increased barriers to entry, massive supply chain disruptions, and soaring procurement costs. 

The ripple effect stemming from tariffs has affected the rental industry through increased equipment costs and disrupted inventory procurement—a rental business owner’s worst nightmare! Imagine you are a construction rental business owner and have to pay an extra 25%- 100% for already expensive heavy construction equipment. 

This level of economic uncertainty, coupled with increased international competition, severely impacts companies’ profit margins and eventually drives them out of business. 

But we don’t want your future to look like this! Now is the time to beat this tariff crunch and emerge stronger and better. Here’s how:

Understanding the prevailing tariff situation

The Trump Administration implemented an aggressive tariff program right after taking office. The plan included a 25% tariff on all imports from Canada and Mexico, citing the need to curb the illegal trading of goods. 

Trump also proposed a 10% tariff on all Chinese imports, later escalating that figure to 60% or more, asserting that China had failed to stop illegal shipments and continued exploiting the U.S. trade policy. 

Additionally, he imposed a universal baseline tariff of 10% to 20% on all imports to boost domestic manufacturing and reduce dependence on international supply chains.

While these measures were meant to increase America’s national sovereignty, they have profoundly impacted the global supply chain.

As a rental business owner, strategically managing your current equipment is the key to controlling costs in economic crises like this one, and platforms like rental asset management solutions can help you do that. Let’s understand how a rental asset management solution can help you overcome today’s economic challenges easily. 

1. Rising fleet acquisition costs

United Rentals, a leading equipment rental firm, has experienced the impact of rising acquisition costs firsthand. In the fourth quarter of 2024, the company reported an adjusted profit of $11.59 per share, slightly below analysts’ expectations. 

The company cited inflationary pressures as a contributing factor. This is one example of a rental business suffering from high acquisition costs. There are many more! 

Tariffs have increased the overall prices of imported machines and equipment, especially from Mexico, China, and the EU, from hydraulic parts to excavators. The high cost and shortage of raw materials encourage international manufacturers to add to the final price, and their cross-border transportation is the final nail in the coffin. 

Unimaginable customs duties further add to the inflationary pressures, making it nearly impossible for local rental companies to buy expensive equipment. The inability to afford this equipment translates into low rental bookings and, in turn, shrunken profit margins. 

Solution #1: Optimize the use of existing equipment

→ Promote high asset utilization over ownership

• Using a rental asset management system, you can ensure that your current equipment meets your operational needs. Catalog the assets well so you know where, in what quantities, and how they are used. 
• Track the usage analytics daily to redistribute resources across the fleet and prevent over- or under-utilization. 
• Instead of buying multiple units, allocate each piece of equipment wisely and share the inventory across departments to mitigate the need for new equipment unless absolutely necessary. 

→ Extend equipment lifespan with proactive maintenance

• Plan recurring maintenance for each asset using built-in calendars and stay worry-free about equipment upkeep. 
• Automate maintenance scheduling so an asset can be sent for maintenance automatically as soon as it’s returned. This helps reduce breakdowns and extend the usable life of your existing fleet. 
• Run periodic checks on your equipment to assess its performance and adjust the maintenance routines. 
• Attach maintenance checklists with each asset so the technicians follow the manual guidelines correctly. 
• Generate maintenance reports and forecast future trends in asset performance to reevaluate your current maintenance strategy. 

Pro tip: AI is the rental industry’s present and future. Leverage AI-powered maintenance solutions and chatbots to optimize asset utilization and maintenance.

2. Supply chain disruptions 

Since the imposition of tariffs, rental businesses have faced massive supply chain disruptions. Numerous factors have slowed the process, from supply delays to longer lead times. For instance, the U.S. container imports increased by 11% in March 2025, as importers brought in more goods to sell before the imposition of tariffs. 

However, China still experienced a fall in imports by 12.6% in February due to heavy tariffs levied in both months. Economic predictions proved to be right, and the supply chain suffered tremendously. 

Suppliers worldwide continue to face many challenges, including reduced inventory, high import prices, a fall in their customer base, and delays in equipment availability. 

Various industries, most prominently the construction industry, have experienced a real hit with increasing construction rental challenges. 

The upfront cost of each piece of heavy equipment has risen tremendously, making it difficult for investors to continue their projects. For instance, a $300 million recycling plant in Erie, Pennsylvania, was canceled partly due to these cost increases and delays in federal loan guarantees.

Solution #2: Execute flawless asset planning to prevent operational delays

→ Streamline parts and repair management

• Gain greater visibility into your rental asset landscape by creating an asset repository and centralizing all asset information into one place. This way, it will be easier to know how many resources you currently have to maximize their utilization. 
• Log, track, and manage repairs and parts usage across your entire fleet.
• Keep service history records at your disposal through automated maintenance to have the maintenance record of each part and asset before you dispatch them to clients. 
• Set buffer times between each rental and its due maintenance or calibration to avoid service delays and maximize uptime. 

→ Set custom alerts and re-order thresholds 

• To address rising costs, leverage historical usage data and seasonality insights to calculate the frequency at which items are rented out. Strategically set maximum and minimum re-order thresholds, considering the buffer and lead times. 
• Enable automatic alerts so you get notified immediately every time an inventory item falls below the set threshold. This is particularly useful when tariffs are high and lead times are substantial, so you can make the necessary arrangements on time by connecting with your supplier. 
• Set aside a safety stock immediately to deal with the uncertainty if prices rise further. For instance, if Chinese import prices increase by 70%, set aside a safety stock of equipment you used to procure from China in advance to deal with the crisis. 

Pro tip: Procure equipment from trusted suppliers and tag the equipment as “tariff-sensitive” in your rental equipment solution. This will help you devise beneficial pricing strategies and make wiser procurement decisions when you are handling this equipment. 

3. Shrinking profit margins due to rising operational costs

As heavy tariffs come into effect, raw materials, labor, insurance, and transport prices experience a considerable impact. Combined, these factors massively add up to the production cost, leading to even higher equipment costs, which are passed onto the buyer. 

As a rental business, you are almost at the end of the consumption cycle as you provide the rental items to your customers. Increased equipment costs mean higher equipment acquisition costs and even higher rental rates. Such exorbitant prices scare away customers who are looking for relatively cheaper rental equipment.

Solution #3: Implement smarter pricing decisions

→ Set dynamic pricing and track the trends

• Set rental rates based on the asset type, rental duration, and the type of customer so you can better handle the volatile economic situation. Do not increase the rates too aggressively to avoid losing your existing customers. 
• Use your rental asset management platform to track these metrics over time and calculate a per-day cost of ownership. Then, set rental rates that cover this cost plus your target margin.
• Identify assets with high and low utilization and set the rates accordingly. For equipment with high utilization, you can charge higher prices to cover the loss, but you can also offer discounts to increase equipment bookings with low utilization rates.
• Make regular financial reporting a key practice to assess which rental items are in demand and being frequently rented out, even after high tariffs. Use asset utilization reports to track utilization rates periodically.

→ Include surcharges or recovery fees transparently

• Rather than increasing the base cost, use your rental asset management platform to separately incorporate expenses like late fees, delivery fees, and tariff surcharges. 
• Generate revenue and customer reports to better assess changing profitability trends.

Pro tip: Use a rental asset management system to identify changing pricing patterns and offer bundles to encourage customers to rent more items. 

4. Scaling operations across locations

Heavy tariffs have not only slowed down rental operations but have made it challenging for companies to scale easily. Scaling requires procuring new equipment, and with tariffs above 100% for several countries like China, it is nearly impossible to expand as the investment cost increases by two to three times. 

Equipment availability, raw material costs, and vendor relationships are now geographically determined, making it even more difficult to expand into newer international markets. Similarly, prices are highly volatile based on where your rental business is and what market you are looking to target. 

Solution #4: Decide on the rental rates and equipment utilization based on geography 

→ Track tariff-sensitive inventory by location

• Populate data into your rental tracking system based on the geographical locations of your rental business and track which locations have been impacted the most. 
• Avoid procuring tariff-high equipment for locations that are primarily impacted while you have underutilized units of the same equipment at a less-impacted location. 
• Move equipment between locations to optimize their use. Be on the lookout for equipment that’s been sitting idle on a client location for weeks now!

→ Localize decision-making

• If you are an international rental business, then give control to your local agents to make data-driven decisions. They can analyze the market trends by leveraging their presence in a certain economic environment. 
• Standardize procurement decisions across branches and use your rental asset management system to determine how the procurement cost differs across each location. Set rental rates in each location’s local currency to determine accurate cost, prices, and tariff impact. 
• Centralize local vendor details into one platform and analyze which vendors cost the least. Gone are the days of sifting through stacks of paper files just to compare vendor quotes. The ability to access vendor data through one click will enable you to shift between vendors after a detailed analysis easily. 

Pro tip: Generate vendor reports using your rental asset management system and compare prices. Assess which vendors suit you best in terms of reliable rates and delivery timelines. 

5. Inefficiencies in fleet management

Like other rental industries, the transportation industry is grappling with the burden of fewer loads due to the reduction in imports. The U.S. trucking industry moves around 72.9% of the country’s freight, and with the tariffs, it has experienced significantly low profits as the demand for trucks has plummeted. 

This disrupts fleet management, as less work means more idle resources that need to be reallocated for better use. Slow operations and increasing prices reduce operational budgets, shrinking profit margins. 

For instance, the price of a new tractor can increase by as much as $35,000—severely damaging transportation and construction operations. All of these factors combined increase the maintenance costs of the idle fleet and hamper the ability to forecast future demand. 

Solution #5: Increase visibility across the fleet for strategic decision-making

→ Centralize your fleet dashboard

• Set the dashboard in your rental asset management system such that you can view essential details of all your fleet. Enable operational widgets, such as trucks rented out, available trucks, and their distribution location-wise, to see how you can optimize their use. 
• Actively check the dashboard for anomalies. For instance, if GPS tracking shows equipment at an unexpected location or not where it’s supposed to be according to the rental agreement, it could indicate loss, theft, or logistical errors. 

→ Improve your sales and customer management 

• Using a centralized platform, you can improve customer and sales management by automatically documenting details of prospective and new customers, or those who have stopped buying from you. You can also assess which customers rent from you the most frequently. This way, you can target marketing efforts toward them based on their buying habits and offer discounts and deals to increase customer retention. Increased customer retention will make it easier to surpass the crisis without losing customers. 
• Reach out to inactive customers to encourage them to rent from you again. 
• Assign sales representatives to each customer directly from the system to conduct more targeted outreach. 

Pro tip: Regularly track your fleet’s performance and strive to increase customer retention. This will encourage them to rent from you despite the price hikes. 

Overcome the tariff wave with a smart rental asset management solution

The 2025 tariff wave has thrown companies, especially rental businesses with heavy reliance on imported equipment, into a sea of economic uncertainties. More innovative solutions like rental asset management systems, with data-driven insights and rental equipment tracking and management capabilities, are the new heroes! 

Overcoming this crisis is not impossible! Streamline your fleet tracking workflows, implement smarter pricing strategies, efficiently utilize your existing equipment, and use proactive maintenance techniques to protect your bottom line and survive the crisis. 
Breeze through tariff uncertainties with ease. Try EZRentOut!