'Jane Hardy, the chief executive of a company that makes lawn-care equipment, says she had to lay off 75 employees this summer because of President Trump’s trade war. As she fights to keep her southern Indiana business going, Hardy is one of several manufacturers warning the White House that, unless they see relief from the tariffs soon, job losses will mount and factory closures are likely.'
'Hardy’s company, Brinly-Hardy, has been in business since 1839. It survived recessions and the Civil War, but it might not survive a prolonged trade war. Hardy buys steel from U.S. companies, but Trump’s tariffs on foreign steel have caused domestic prices to rise, as well. Steel costs have jumped 33 percent since the start of the year, and Hardy says her costs are up even more. She was hit again by Trump’s first round of tariffs on Chinese products that went into effect in early July, another hefty cost eating into her bottom line. Other products she imports and says she can’t get domestically are on a list for a second round of tariffs on China likely to go into effect later this summer.'
“We are collateral damage in this effort,” Hardy said. “We’re going to be in the same situation as the farmers of needing to save U.S. manufacturing.”
This is simple economics. Small and medium size businesses do not have the ability to amortize the higher cost or even the inability to get the steel and aluminum they need. The only way to cut costs is to layoff workers. More workers will be laid off as this continues. There are millions more workers who work in steel using industries than in steel producing industries. I would rather see employment increase in steel using industries rather than steel producing industries.
Layoffs from Trump tariffs are piling up. So are calls for more bailouts.
'Hardy’s company, Brinly-Hardy, has been in business since 1839. It survived recessions and the Civil War, but it might not survive a prolonged trade war. Hardy buys steel from U.S. companies, but Trump’s tariffs on foreign steel have caused domestic prices to rise, as well. Steel costs have jumped 33 percent since the start of the year, and Hardy says her costs are up even more. She was hit again by Trump’s first round of tariffs on Chinese products that went into effect in early July, another hefty cost eating into her bottom line. Other products she imports and says she can’t get domestically are on a list for a second round of tariffs on China likely to go into effect later this summer.'
“We are collateral damage in this effort,” Hardy said. “We’re going to be in the same situation as the farmers of needing to save U.S. manufacturing.”
This is simple economics. Small and medium size businesses do not have the ability to amortize the higher cost or even the inability to get the steel and aluminum they need. The only way to cut costs is to layoff workers. More workers will be laid off as this continues. There are millions more workers who work in steel using industries than in steel producing industries. I would rather see employment increase in steel using industries rather than steel producing industries.
Layoffs from Trump tariffs are piling up. So are calls for more bailouts.
