This archive report was first published on 30 August 2019.
US Companies Scramble as Trump's Trade Uncertainty Continues ¶
Published on August 30, 2019
President Trump's trade policies have left US companies scrambling to adapt, introducing uncertainty and unpredictability in the market. Four companies, including Columbia Sportswear and Cordoba Music Group, are struggling to cope with the changing landscape.
Columbia Sportswear, a Portland-based outdoor apparel company, had spent thousands of hours drafting a plan to deal with the tariffs on Chinese imports. However, when President Trump announced that he was raising tariffs even higher, the company's CEO, Tim Boyle, was left frustrated.
'We had a solution, where we're going to raise prices, where we're going to move stuff,' Mr. Boyle said. 'And then, an hour later, we learn he's going to raise tariffs even further. It's insane.'
Mr. Boyle's comments reflect the uncertainty and frustration that many US companies are facing as they try to navigate President Trump's trade policies. The tariffs have introduced a level of unpredictability that is making it difficult for companies to make long-term plans.
For Cordoba Music Group, a guitar manufacturer, the tariffs have meant an extra $100,000 in monthly expenses. The company's CEO, Tim Miklaucic, has been forced to call his suppliers in China and ask for their help in reducing prices.
'We can't absorb that,' Mr. Miklaucic said. 'We need your help.'
Other companies, such as American Textile Company and Schaefer's TV and Appliance Center, are also struggling to cope with the changing landscape. American Textile Company's CEO, Lance Ruttenberg, has been forced to postpone plans for future investment until the Trump administration provides some clarity about its strategy.
'I would say we're in wait-and-see mode,' Mr. Ruttenberg said.
As the trade uncertainty continues, US companies are bracing themselves for a hit to profits. The situation is likely to remain uncertain until the Trump administration provides some clarity about its trade policies.
