Local construction and manufacturing businesses react to tariffs
As costs continue to rise, recent tariffs have caused concern for some in construction and manufacturing.
“In our industry, it’s going to hurt. There’s no question about it because it’s going to drive up your price to consumers, which is already a competitive market to begin with,” said Stone Countertop Hall Owner Joel Dehmel. “There are also other charges involved with just the material itself when it comes to cutouts, edge details, and backsplash. Labor itself is going up as well, so all of that has to be passed on to somebody.”
Dehmel added that the amount a business is impacted may depend on where the product is from.
“We got hit a few years ago with the Chinese tariffs to begin with. So that kind of changed this industry at that point,” explained Dehmel. “But a lot of them then at this point went to Vietnam, India, and Malaysia. It really depends on the brand. So some have gone up 20 to 30%, and some have only gone up 5 to 6%.”
While many feel anxious about the impact of tariffs on the economy, others feel hopeful.
“I don’t think they’re going to feel it as much as everybody’s making it out to be. I think there’s like this big scare, and I think it’s just going to slowly dwindle, and it will be back to business as normal,” said Platinum Properties Owner Stevie Paulson. “We’re excited about it. We know that it’s going to be a rough road at first, but in the long run, it’s going to be better for the country.”
The tariffs include a 34% tax on imports from China and 20% on the European Union, which the Trump Administration says will restore fairness to global trade. Paulson also believes the tariffs will instill fairness.
“I’ve traveled all over the world. I’ve never seen a Chevy pickup truck in Europe, yet we see BMWs and Mercedes and other vehicles over here,” said Paulson. “The reason for that is, for us to deliver a Chevy pickup truck over there, they charge us so much to bring it onto their soil. We’re just trying to make it fair. I think at the end, we’re going to be real good friends with a lot of countries, and everybody’s going to benefit.”
According to the White House, tariffs on U.S. exports led to a $1.2 trillion imbalance last year. For some business owners, rethinking the origin of products has become a way to balance the new tariffs.
“The biggest thing with the tariffs right now is all the things that we’re getting from– there’s a lot of shingle manufacturers and steel manufacturers from Canada that we use daily. We’re going to have to pivot if we’re going to want to save homeowners those costs to, you know, United States products,” explained Outlast Construction Partner Travis Allen.
Business owners who already have American-made products are less concerned about tariffs, including Duluth Shed Owner Lee Gelineau.
“Southern Yellow Pine comes from Mississippi, Louisiana, that area. If you’re using L-P Smart Products, they come from Two Harbors and Michigan. So a lot of that stuff is already in America,” said Gelineau. “The West Coast is just loaded with tons of forestry products. And down the south, I mean, they just got to figure out different supply routes, and I think that’s not going to be an issue.”
Many who ship products in from other countries already have stock stateside, making the impact delayed.
“They might have a year’s worth of product that’s already here. The tariffs aren’t going to affect those. They’ve already landed. They’re already in-house. We can already buy them. We already have been purchased in quantities,” said Dehmel. “It’s anything that’s coming future. So if they work now and they come now, they’re going to get a better price point than if they wait in the future.”
With so much uncertainty, wait-and-see seems to be the mindset for local business owners.
“I’m not a politician, but hopefully they figure something out, because the bottom line is, the consumer is what drives our economy. It’s us blue collars that make it happen,” said Gelineau. “I think if they affect the blue collars, and we’re not making enough money, we’re not going to do it. If it costs $150,000 for a truck, we’re not going to buy it. So let’s get those jobs back in America, and let’s make it happen.”