Washington (United States) (AFP) – Small American businesses warned Friday that a tougher trade landscape was here to stay, as the Supreme Court’s rejection of sweeping tariffs was quickly followed by President Donald Trump’s pledge to impose new duties.
“It’s certainly not the end of the difficult trade environment that we’re trying to deal with,” said Ben Knepler, co-founder of outdoor chair maker True Places. He was forced to radically scale back his Pennsylvania-based business last year after Trump imposed new tariffs on virtually all trading partners. The high court’s decision on Friday that these country-specific tariffs were illegal brought limited comfort.
“Even with this ruling, there’s too much uncertainty for us to be able to restart production for the US,” he told AFP. Knepler had shifted his supply chain out of China to Cambodia at heavy cost after Trump’s trade war with Beijing during his first presidency. But Trump’s new 19-percent tariff on Cambodia imports last year forced him to halt manufacturing. He is now working on selling the remainder of his inventory rather than continuing production while he plans his next steps. But he said: “It does give us a little bit of hope that at least there’s some kind of check on what was previously unlimited power outside of Congress.”
– ‘Surgical approach’ –
Josh Staph, chief executive of Ohio-based Duncan Toys Company, urged a “more surgical approach to tariffs” after Trump announced his plan to impose new and sweeping 10-percent duties on imports. Duncan Toys has been producing yo-yos, flying discs, and model gliders in China, and Washington’s escalating tariffs with Beijing last year similarly forced him to pause imports. He was “cautiously optimistic” over the Supreme Court ruling.
But he said he “knows the administration is committed to imposing these tariffs, despite their impact on US toy companies and consumers.” Boyd Stephenson, who runs retailer Game Kastle in Maryland, told AFP he was “very excited to hear that the tariffs have been struck down.” He believes the legal limits can do “wonderful things for the gaming and toy industry over the next year,” but conceded “the devil’s always in the details.”
“It’s very much a wait to see how the removal of the tariffs percolates through the supply chain,” he added. Meanwhile, the effects of Trump’s incoming duties remain uncertain.
– ‘A setback’ –
Drew Greenblatt, president of Baltimore-based metal product manufacturer Marlin Steel, worries however that Friday’s court ruling was “a setback” for the United States. Greenblatt has been supportive of Trump’s steel levies, which alongside other sector-specific tariffs were not impacted by the high court’s decision. But he expressed concern that the outcome would hamper Trump’s ability to navigate and negotiate trade deals with an aim of boosting US manufacturing.
“Do you think if we get into an adversarial relationship with one of these trading entities, they’re going to supply us ships?” he asked. “Do you think they’re going to supply us critical materials?” “The wider concern is we need a robust manufacturing industry,” he told AFP.
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