President Donald Trump's tariff policies are proving to be a double-edged sword for U.S. businesses, inflicting uncertainty and increased costs on sectors ranging from automotive to apparel, while simultaneously offering a potential boost to some domestic manufacturers.
Over 400 imported items, including farm equipment, flatware, industrial robots, dumbbells, and infant swings, are now subject to tariffs on their steel and aluminium content, as outlined by the Commerce Department.
These duties, unlike the “reciprocal tariffs” previously announced by Trump and challenged in court, are imposed under a national security rationale. They derive from Section 232 of the Trade Expansion Act of 1962, a more established and durable legal authority.
With Trump signaling an expansion of the tariff list, some small businesses are actively advocating for further protectionist measures across additional products to boost their own prospects.
The Wall Street Journal spoke with two firms that manufacture within the U.S. and are eager to capitalize on higher costs for imported goods and expand their market share domestically.
Greg Owens, chairman of Sherrill Manufacturing, which bills itself as America’s last manufacturer of stainless-steel flatware, operates in a sector that has been flooded with cheaper imports for years.
However, a recent decision to impose a 50 percent tariff on the steel content of imported stainless steel flatware is game-changing for the company.
Sherrill generates approximately 60 percent of its revenue from consumers who purchase the company’s Liberty Tabletop brand online. In recent years, the company has been unable to produce flatware at a price that would enable it to be stocked on store shelves.
“We couldn’t compete with the Chinese factories,” said Owens. “We couldn’t even come up with a price mainstream retailers could accept.”
Now, with imports facing tariffs, Owens is optimistic about the future of the central New York business, which is based in a factory that was once the world's largest flatware maker.
He also hopes that it might benefit from the removal of the de minimis rule, which allowed packages valued at $800 or less to enter duty-free.
Owens has already seen an increase in inquiries this year from hospitality and other institutional clients, as well as some retailers. None have yet resulted in new purchase orders, but the company has hired a few additional workers in response to the increase in online sales.
Similarly, Goldens’ Foundry & Machine, based in Columbus, Georgia, produces metal castings for various sectors, including trucking, material handling, and construction. It also manufactures consumer goods, including kettlebells, dumbbells, cast-iron fire pits, and kamado grills, employing 175 people.
George Boyd Jr., the fifth-generation chief executive, articulated the company's dilemma: “As the tariff conversation has moved forward, we find ourselves in an awkward, sort of ignored place. The steel tariff is good for steel mills, but we are a jobbing foundry that is pouring iron.”
Jobbing foundries specialise in customised parts for diverse clients. Boyd argues that companies like Goldens’ play a key role in manufacturing but are often overlooked because they produce components rather than finished products.
Recognizing this oversight, he successfully petitioned the Commerce Department for the inclusion of dumbbells and kettlebells on the tariff list, in a bid to ensure the company’s viability.
Having been successful, he is now seeking to petition for more of the company's products to be included.
While the stated purpose of the steel tariffs is to boost domestic steel manufacturing as a national security priority, many of the products benefiting from the new levies have no national security component.
Nevertheless, any boost to domestic manufacturing is likely to be welcomed by the Trump administration, even if higher average prices for those products increase, as imports still dominate the market while U.S. production attempts to ramp up.
Trump aide Navarro asks why Modi is ‘getting into bed’ with Putin and Xi
What next for Trump’s tariffs after president warned US would be ‘destroyed’ if they don’t go ahead
Judge blasts Trump team’s ‘startling’ attempt to rapidly deport immigrants
More than 1m immigrants have left the US workforce since Trump’s crackdown: report
Jan 6 rioters now want compensation after being pardoned by Trump
