The small manufacturing industry in the US is highly polarized due to the intense strain and pressure from President Donald Trump’s aggressive policies centered around tariffs. Some businesses perceive possible growth opportunities from having foreign competition; however, many are anxious about the prevailing economic uncertainty as well as the possible damage to their businesses.
Marlin Steel Wire Products owner Drew Greenblatt supports Trump’s tariffs, pointing out that foreign rivals take advantage of reduced costs from American businesses. He uses European tariffs as an example to support his claim that unfair trade practices have harmed American workers for many years.
The optimistic businessman believes that the foreign companies will be encouraged to produce more if their products have to be manufactured in the US, and their dependency on foreign goods will create more American jobs. If “parity” in tariffs is achieved, he suggests that he could more than double his manufacturing workforce.
Economic Uncertainty and Consequences: The Concerned Side
For instance, small-scale manufacturers and producers are nowhere near Greenblatt’s level of optimistic outlook. Assortment manufacturer Corry Blanc of Blanc Creatives, situated in Waynesboro, Virginia, who manufactures hand-crafted cookware, voices worries about the economic uncertainty regarding tariffs and their overall impact. Blanc has the American lumber and steel suppliers for his products, so he specifically uses domestic timber and steel, but he has reported receiving extremely anxious calls from international clients, including Canada. He emphasizes that the current American infrastructure would not be able to cope with a large amount of American goods demand surge, even if there was a surge in demand. “There’s so much uncertainty and not a lot of direction,” said Blanc, which is additional context that the current state is the worst he has seen since he established his company in 2012.
Michael Lyons, owner of leather manufacturer Rogue Industries based in Maine, resonates with Blanc’s issues. He points out that the negative aspects of uncertainty with tariffs are far too great to outweigh any potential benefits. Trade tensions recently cost Lyons a long-time Canadian customer, something he calls an “interesting indicator.” Now, he plans to “hold with what we have” and avoid business expansion for the time being.
Decades-Long Vision: The Justification for Renewed Investment in Domestic Manufacturing
American clothing retailer American Giant, Bayard Winthrop, the company’s CEO, takes a domestic sourcing materials perspective on the business in the long run, which is more optimistic. Reflecting on the decline of the US textile industry, he notes that in 1991 56 percent of US apparel production occurred within the country. That number now rests below four. “I’d like to think,” Winthrop said in the Wall Street Journal, “that the tariffs will serve to boost the level of American goods available. They could set domestic manufacturers on a bit more of a competitive footing,” he argues.
While acknowledging the concerns with the administration’s “volatile and unpredictable” strategy, Winthrop tries to shift focus towards a more long-term approach. He put forth the assertion that “it’s a fantasy that we can be more protective of our domestic marketplace and have an industrial policy that features manufacturing jobs. That’s an old idea. It’s not a new idea.”
A Divided Sector: The Debate Stimulates
The small manufacturers perspectives illustrate the profoundly deep and often ambiguous effects of the Trump administration’s trade policies. Divided opinions stem from potential opportunities for growth and the more favorable economic environment on one side, while the other seeks cover from the risks and uncertainties as well as a potential economic slump from losing clientele. The debate itself lays bare the tension of grappling with conflicting needs and how great the desire is for a decisive and coherent trade policy.
