For almost 35 years, Alan Chadwick has run a Wyoming-based business selling Western-style clothing made in China to U.S. stores catering to “working cowboys.”
But now, as former President Donald Trump campaigns on a promise to add a 10-20% tax, or tariff, on all imported goods – going up to 60% on items from China – Chadwick is forced to rethink his business model.
Chadwick, 66, may even consider moving his clothing manufacturing to countries like India or Pakistan, or retiring and closing his 16-employee company altogether, as the U.S.-based factory costs are too high.
BBC reports that he calls tariffs a “tax on Americans” but will still vote for Trump, prioritizing other issues like immigration and abortion.
Chadwick’s support for Trump, despite the tariff concerns, reflects the complicated choices many American voters face, according to the BBC.
Trump’s trade plans have moved the U.S. away from free trade toward policies designed to protect American jobs, even though experts warn they may have downsides.
Despite economic worries, many voters back Trump’s stance, with a Reuters poll finding 56% of likely voters in favor of his tariffs.
The BBC adds that these tariffs may raise U.S. prices by $1,700 per household, and the Tax Foundation warns that they could cut American jobs by 684,000 and reduce GDP by nearly 1%. Economists say that these tariffs will raise costs for American families without boosting jobs.
Chadwick’s story shows how these trade policies impact businesses, forcing some, like lighting company Jasco, to relocate from China to Vietnam or Malaysia.
Since shifting production, Jasco’s costs rose by 10-15%, which contributed to inflation and reduced their staff by 150 workers, further supporting the BBC’s view that tariffs can harm businesses and employment.
Still, Trump says his tariffs will help boost American manufacturing, raise wages, and bring more tax revenue from foreign nations.
Yet, as the BBC reports, the business community remains skeptical, fearing that such policies might leave the U.S. less competitive globally.
https://www.bbc.com/news/articles/c0r8edwj9wlo