The recent administration says that tariffs on Chinese imports will shift manufacturing back to the United States, but some small to midsize factories are saying that the tariffs are hurting their business. Many of these factories including automotive, rely on steel tubes cut in China for painting and welding. One plant noted that they planned to hire another 40 workers, and because of the tariffs has decided to hold back.
The Trump administration says the tariffs are designed to counter what it sees as unfair trade practices that give Chinese firms the advantage over their U.S. counterparts. Some U.S. manufacturers have also reported an increase in revenues as it has forced customers to rethink supply chains. However, other automotive companies have said that the U.S. tariffs are raising their costs and making them less competitive.
Some companies hit by tariffs aren’t only raising prices to offset the added costs, but some are delaying plans to expand within the U.S. while they search for other offshore production options. One nonprofit that helps manufacturers make decisions about relocating production stated that “overall, manufacturing in the short-term, the U.S. is worse off because of the tariffs.”