US President Donald Trump had promised that tariffs would help revive domestic manufacturing. During his first term, he imposed a 25% tariff on imported steel, claiming that idle factories across America would roar back to life. However, US manufacturers remain unconvinced.
Lorain, Ohio, once a bustling industrial hub, illustrates the unfulfilled promise of tariffs. Mayor Jack Bradley recalls being told that tariffs would help Republic Steel restart production in Lorain and create 1,000 jobs. "That never happened," Bradley said. According to the Financial Times, the steel plant, which once employed 12,000 workers, permanently shut down in 2022.
Recently, Bradley reached out to Republic Steel CEO Jaime Vigil to inquire if the new tariff policies could bring operations back to Lorain. The response was definitive: "We're not going to do that." Bradley now believes that trade wars won't lead to industrial revival but instead could cause economic turmoil.
Other companies in Lorain are also feeling the heat from tariffs. PC Campana, a producer of alloy cored wire, relies on calcium and boron imported from China. Scott, the company's department manager, expressed skepticism. He said that manufacturing moved out of the US over the past 50 years, and it's impossible to bring it back overnight.
Skylift, a company that manufactures equipment for power companies, faces a similar challenge. CEO Nicholas Jarmoszuk noted that manufacturers relying on Chinese components are scrambling to find US-based alternatives. He pointed out that the demand is going to keep growing, but domestic supply is limited.
JFL Enterprises, a supplier of toys and party goods to major retailers, is another business grappling with the cost of tariffs. The company head described the situation as unsettling, with 95% of their products sourced from Chinese suppliers.
Velocity, an engineering and manufacturing firm, sources many of its electronic components from China. CEO Savage explained that there are no viable alternatives in the US or other countries. Savage warned that if Chinese supplies dry up, the US and global markets will face a severe shortage, leading to price surges.
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