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Economy & Trade

Trump tariffs test US manufacturers before midterms

US manufacturers are warning that President Donald Trump's tariffs and trade tensions are raising costs and complicating business decisions ahead of November's midterm elections.

In Ohio, Doug Rende, chief executive of aluminum product maker Shapes Unlimited, said tariffs on aluminum have added about $4.5 million to $5 million in costs this year. He said his company has paused recruitment for new jobs while investing in more robotic assembly.

Rende said Trump's aluminum tariffs have risen from 10 percent during his first presidency to 25 percent and then 50 percent last year. He also said higher fuel prices during the US-Israel war on Iran have lifted transport surcharges to about $6,500 per container of goods from suppliers.

Sam Miller, an Ohio manufacturer of kitchen and bathroom products, said his company has faced tariffs on imported materials from Asia while finding it harder to expand into Canada because of trade tensions. He said plans to open a distribution facility in Canada this year had slowed.

The pressure comes as Democrats try to use grievances over Trump's trade policies in their campaign to win control of the Senate and House of Representatives. Some manufacturers have benefited from higher barriers for foreign competitors, but others say the policies have increased costs and uncertainty.

Guy Coviello, president of the Youngstown Warren Regional Chamber, said tariffs, the Iran war and immigration were a “mixed bag” for firms but negative overall. He said some companies had lost customers or had to downsize.

Coviello said Canada is Ohio's biggest export market, taking about a third of the state's exports, and that cross-border trade is complicated because some goods move back and forth several times. He said tariffs may be useful for critical items such as defence and medical products, but warned against applying them to products that are not available in the United States.

Uncertainty notes

The scale of tariff effects varies by company and sector.
The long-term effect of trade tensions on manufacturers' hiring, investment and voting behaviour remains unresolved.

Source

AFP news report published on .

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