High Tariffs Hurt Local Manufacturers: A Call for Economic Understanding
By Paxson Woelber, Anchorage Daily News
High tariffs implemented by the U.S. may seem beneficial for small businesses, but they are creating significant obstacles for manufacturers like Ermine Skate, based in Alaska. Our high-end Nordic ice skates are entirely crafted in Alaska, yet the increased costs of raw materials and machinery due to tariffs are logging heavy burdens on our operations.
These tariffs—taxes that importers must pay—remain hidden costs that diminish consumer choice and inflate prices across the board. For example, key materials for our skates, such as stainless steel and aluminum, have seen drastic price increases, and the machinery we rely on, including essential grinding and laser tools, have also become pricier due to these trade barriers.
Furthermore, the tariffs have cascaded into the outdoor equipment sector, affecting vital components like bindings and safety gear that are imported from countries now facing high tariffs. For instance, Swedish safety products we sell recently faced a steep EU tariff, compounded by the declining value of the U.S. dollar against foreign currencies. This dual impact has made our products less accessible, leading to concerns about potential sales losses.
Retailers are feeling this uncertainty, with many halting preorders as they try to navigate a volatile market. The drop in consumer confidence, the stock market instability, and rising treasury rates reflect broader economic anxieties that are adversely affecting our niche industry.
In this climate, while some may hope for a temporary monopoly on the market due to tariffs, it’s clear that such isolationism is counterproductive. A strong, competitive marketplace fosters innovation and affirms international relationships. The pain caused by these economic rifts can be resolved, but the reputational and moral setbacks may take much longer to mend.
The views expressed are those of the author and not necessarily endorsed by the Anchorage Daily News.
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