Trump’s tariffs give boost to some U.S. manufacturers despite higher costs

Some U.S. Manufacturers See Gains as Trump’s Tariffs Shift Demand Back Home

Import levies spark renewed interest in domestic goods, but higher input costs temper enthusiasm

As the U.S. trade war deepens under President Trump’s renewed tariff policies, a number of small and midsize American manufacturers are reporting a rise in demand — the result of companies actively seeking alternatives to Chinese imports now facing tariffs as high as 145%.

Though these levies are raising production costs for many, they're also offering a rare competitive edge for domestic producers long squeezed by cheaper overseas rivals.

Tariffs fuel new orders for U.S. tool and rubber producers

In Cleveland and Chicago, Jergens Inc. is operating around the clock to keep up with rising orders. “We are swamped,” said Jack Schron, president of the industrial toolmaker. He attributes the surge partly to clients avoiding high tariffs on imports, and partly to sustained demand from the defense industry over the past 18 months.

In Ashtabula, Ohio, rubber gasket manufacturer Grand River Rubber & Plastics is also seeing a jump in business. Two clients who had previously shifted production to China returned to Grand River in recent days, looking to source domestically again.

“All together, the new business could be worth about $5 million annually,” said Donny Chaplin, the company’s president. That would represent roughly 10% of annual revenue — enough to warrant possible hiring and production expansion, though Chaplin is seeking long-term contracts first to protect against policy reversals.

Input costs rise alongside demand

Despite the new business, tariffs have also increased costs for materials sourced from abroad. Grand River still relies on some Chinese tools and rubber, now subject to a 145% import tax. Even modest 10% tariffs on items from other countries have pushed up procurement costs — costs Chaplin said will be passed on to customers.

This is a common trade-off for many manufacturers, who say that while tariffs boost sales, they simultaneously make production more expensive.

For some, tariffs are a mixed blessing

Husco International, a Wisconsin-based maker of auto and agricultural components, has already reduced its reliance on Chinese inputs to 20%, down from 40% a decade ago. Still, CEO Austin Ramirez notes, “We can’t just stop. These are critical components.” Tariffs must be absorbed or offset — often through price increases.

Tariffs have also helped resuscitate domestic PPE manufacturers, many of which were abandoned by U.S. buyers once global supply chains recovered post-pandemic. At SafeSource Direct in Louisiana, new rubber glove orders prompted the company to restart two production lines, bringing its total to eight.

“We’re getting a lot more inquiries now,” said Alan Rust, SafeSource’s chief growth officer. The company is now operating at a rate of nearly 118 million gloves per month and says it's approaching cost parity with large Asian suppliers.

Still, not all inputs are immune to tariffs. The nitrile rubber chemicals SafeSource imports from Brazil and Italy now carry a 10% tariff, limiting their pricing flexibility.

Reshoring gains: manufacturers win back lost customers

For AccuRounds, a Massachusetts-based components maker, the tariff environment has helped the company regain clients that previously moved production to China and Singapore. First-quarter sales rose 20% year-over-year, said CEO Michael Tamasi, as two former customers placed new orders.

“We hope there’s more to follow,” Tamasi said, cautiously optimistic about sustained reshoring momentum.

Whirlpool sees competitive reset as tariffs return

Large manufacturers are also watching tariff developments closely. Whirlpool, which assembles 80% of its appliances in the U.S., had struggled to compete on price against foreign-made washers exempt from tariffs since 2023. That exemption has now ended.

CEO Marc Bitzer expects the new import levies on assembled appliances to narrow the $150 retail price gap between Whirlpool and its overseas rivals. Still, the company expects tariff-related input costs to rise 2.4% this year — around $400 million — and plans to offset the increase with price hikes and cost-cutting.

Industry outlook remains divided

While small manufacturers are gaining ground, uncertainty about the permanence of tariff policies is keeping many from investing in new capacity. Factory owners like Chaplin and Schron are wary of expanding headcount or building infrastructure until they see regulatory consistency.

Broader indicators, such as the April Federal Reserve survey of Texas manufacturers, suggest continued caution, with many firms citing tariffs as a source of business strain rather than optimism.

The tariffs may be controversial, but they are reshaping how and where companies source goods. For smaller American manufacturers, this is an opportunity — one that comes with risks, but also with the potential for a long-awaited revival.

Stay tuned to The Horizons Times for deeper reporting on how trade policies are shaping the future of U.S. industry.