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Union Made In USA
In the article “NJ companies stockpiling imports to avoid Trump’s promised China tariffs,” New Jersey businesses are proactively increasing their import inventories in anticipation of impending tariffs proposed by President Trump. These tariffs include a 25% duty on goods from Mexico and Canada and a 10% duty on imports from China.
For example, Mac Products, a Kearny-based manufacturer of electrical distribution and transmission products, is accelerating orders from Chinese suppliers for essential materials like steel and copper. Owner Eddie Russnow acknowledges that while sourcing domestically is a consideration, the anticipated tariffs are expected to impact profit margins, as the company may not be able to pass on the increased costs to customers.
Similarly, Unionwear, a Newark-based apparel manufacturer specializing in “Made in USA” products, views the combination of tariffs and automation as an opportunity to enhance competitiveness against imported goods. CEO Mitch Cahn anticipates that automation will reduce domestic production costs by 75%, enabling the same labor force to triple output, thereby narrowing the price gap between domestic and imported products.
Economists caution that while tariffs aim to encourage domestic manufacturing, they could lead to increased consumer prices and potential trade conflicts, affecting the broader economy. Businesses are advised to prepare for these changes by reassessing supply chains and considering cost-saving measures to mitigate the impact of higher import duties.
The article highlights Unionwear, a Newark-based apparel manufacturer, as a company that stands to benefit from Trump’s proposed tariffs on imports. CEO Mitch Cahn explains that the combination of tariffs and automation could enhance Unionwear’s ability to compete with imported goods. He anticipates that automation will reduce domestic production costs by 75%, allowing the company to triple its output with the same labor force. This increased efficiency could help close the price gap between Unionwear’s American-made products and cheaper imports, making domestic manufacturing more viable.
