Tariff Talk 2.0: Domestic Manufacturing

Regardless of the role trade agreements like NAFTA played in the continued move of manufacturing overseas, it was not the sole reason for this move, and thus its reversal (one could even go as far as to say, overcorrection) will not solve the problem. We cannot see how the current situation will do anything to increase domestic textile manufacturing in any way. Asking mills to expand production requires more labor, and more equipment. Currently equipment must be purchased—you guessed it—overseas, thus costing the company more money. If a yarn is spun domestically but uses imported materials, it now costs more to produce. Technically all these rising costs are the point of tariffs, but increased cost seems to be their only effect. As a brand actively involved in domestic manufacturing, we have not benefitted from any policies or practices over the last 6 months that have helped increase our manufacturing here versus overseas.

This series about tariffs from Kelbourne Woolens has been so well done. I’ve not used their yarn, but the way they point out exactly what’s going on and how it affects them, a business that is trying to make yarn in the US as well as use fibers from outside the US, has been well worth the read. Related: I have a feeling lots of other small businesses in other areas could write similarly about what is happening, where their industry is at, and how this is affecting them, but I use yarn so I’ve been reading a lot about that.