I wasn’t raised to think about tariffs.

Odds are, you weren’t either.

I was taught to work hard, get a job, earn a living, and if I was lucky, make a difference. That was the formula. That was the plan. No one ever pulled me aside to explain how international trade policies or import taxes might one day shape the cost of materials, the future of U.S. manufacturing, or the kinds of jobs that would still be around for my kids.

But here we are.

If you’ve worked in or around manufacturing over the last five years, you’ve probably felt it. That slow, creeping shift in how things get made, where materials come from, and how much harder it’s gotten to keep things moving on time and under budget. And while there are a lot of moving parts to that story, tariffs (those taxes we put on imported goods) are a big one.

They’re not new. Tariffs have been around since the beginning of this country. But that’s not the point.

The point is what they’re doing now.

What’s Actually Happening

Right now, tariffs are not just a talking point.

They are policy.

Tomorrow is April 2. President Trump has officially declared it “Liberation Day.” And with that declaration comes a sweeping new tariff policy that will impact nearly every foreign-made product entering the United States.

We’re not just talking about steel and aluminum anymore.

This time, it is everything. Every imported bolt, battery, bearing, appliance, tool, machine, and microchip will be taxed under what the administration is calling a universal baseline tariff.

It is bold. It is aggressive. And depending on where you stand in the supply chain, it is either a necessary correction or a massive disruption. Or maybe it is both.

If this sounds familiar, that is because it is.

Back in 2018, the Trump administration imposed a 25 percent tariff on steel and aluminum, along with additional tariffs on goods from China, Canada, and Mexico. Some industries got a boost. Others took a hit. And many of the manufacturers we work with at FlexTrades got caught somewhere in the middle.

Now here we go again. Only this time, it is bigger. Louder. And for most companies, a whole lot harder to plan around.

The Cost of Protection

Tariffs do not just raise prices on foreign goods.

They raise prices on everything.

If your business depends on imported materials, your costs are going up. If your vendors rely on imported components, their costs are going up. And when that happens, you are either eating those costs or passing them down the line.

Eventually, those added costs land in one of two places. Either they show up on your balance sheet. Or they show up in your customer’s final invoice.

And it is not just businesses feeling the strain. It is the welders, the machinists, and the maintenance techs. It is the folks walking into the shop every morning wondering how many more curveballs this industry can throw at them.

It is the shop foreman trying to make a delivery deadline with parts that did not arrive. It is the business owner staring at a spreadsheet and wondering how to pay ten percent more for steel when the contract was signed six months ago.

Some shops adapt. A few even thrive.

But others? They are running out of road.

The Bigger Question

Tariffs are not inherently good or bad. They are tools. And like any tool, they can build or they can break depending on how they are used.

The idea behind them is simple. Protect domestic production. Level the playing field. Keep jobs at home. All of that makes sense.

But when tariffs go too far, they do not just hurt foreign competitors. They hurt the people we are trying to protect. And if we are being honest, manufacturing in America is already hard enough.

We do not need more pressure.

We need more support.

So, What Now?

Liberation Day is tomorrow.

That is not a headline. That is real.

And what comes next will impact American manufacturing in a big way. The question is, are we ready?

Because the goal of bringing jobs back is a good one. But goals without preparation tend to collapse under their own weight.

If we want this to work, we need to:

  • Invest in skilled trades and train the next generation of workers
  • Strengthen our supply chains instead of just shifting their cost
  • Support the companies who are doing things the right way

Tariffs might shape the playing field.

But it is people who build the field in the first place.

Every bolt. Every beam. Every overnight shift and every early morning run to the yard. It all starts with someone showing up, doing the work, and doing it right.

So the next time you see a “Made in America” label, stop and take a second look.

Because behind that label is someone’s livelihood. Someone’s future. Maybe yours.

What do you think?

Are these new tariffs going to help your business or hurt it?

And more importantly, are we doing enough to support the workers who keep this country moving?

Let’s talk.

Because this conversation matters.

Tariffs have long been a cornerstone of economic policy and international trade. These taxes on imported goods have been part of the U.S. trade landscape since the nation’s founding, influencing everything from government revenue to domestic industry growth. While tariffs are designed to promote certain economic goals, their effectiveness remains a subject of ongoing debate. For manufacturers, in particular, tariffs can create both opportunities and challenges. Let’s explore the history, purpose, and implications of tariffs to better understand their role in today’s global economy.

What’s a Tariff?

Tariffs are taxes that a country’s government imposes on goods imported from other countries. They have been a part of U.S. trade policy since the United States was founded. In fact, tariffs date back to 1789 when Congress passed the Tariff Act of 1789 and President George Washington signed it into law.

Why Are Tariffs Used?

In general, experts like Douglas Irwin, a professor of economics at Dartmouth College, agree that there are three main reasons for utilizing tariffs: revenue, restriction, and reciprocity.

  • Revenue: Tariffs are taxes on others. When other countries pay tariffs, it increases revenue for the imposing country.
  • Restriction: Tariffs can limit foreign goods, restricting imports while potentially supporting domestic goods. The word “potentially” is used here because some argue that restricting imports raises the price of domestic goods, reduces the availability of inputs manufacturers rely on, and exposes inefficiencies in domestic production.
  • Reciprocity: Tariffs can act as negotiating tools, promoting trade agreements and creating opportunities for trade negotiations.
  • Some experts suggest an additional “R”: Retaliation. Governments can raise tariffs against countries that have closed their markets, using tariffs as a means of retaliation.

How the United States Has Employed Tariffs

The U.S. Constitution grants Congress the “Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States.”

Early in the nation’s history, free trade was a key principle as the United States sought independence from British influence. However, imposing tariffs during this period helped generate revenue to develop the nation while meeting its goal of separation from British policies.

Historically, the U.S. has used tariffs to encourage domestic industrial growth. Up until 1913, tariffs were the largest source of federal revenue. With the introduction of the federal income tax, the government began to rely less on tariffs as a primary revenue source.

After World War II, the global economy required cooperation to rebuild. This led to the establishment of agreements and organizations such as the General Agreement on Tariffs and Trade, the World Trade Organization (WTO), and the North American Free Trade Agreement (NAFTA). These commitments to free trade sought to lower tariffs and facilitate imports and exports between countries.

What Tariffs Mean for Manufacturers

Tariffs and trade are often accompanied by tension, creating what could be called the “Three T’s.” For manufacturers, the impact of tariffs is complex, with varying opinions on their benefits and drawbacks.

Supporters of tariffs argue that they:

  • Increase domestic manufacturing and wages.
  • Boost government revenue.
  • Protect certain industries and intellectual property.
  • Address unfair trade practices.
  • Promote research, development, and innovation.

Critics of tariffs counter that they:

  • Disrupt global trade flows.
  • Create inefficiencies for domestic manufacturers.
  • Exacerbate market inequities.
  • Generate insufficient revenue to justify their implementation.
  • Increase costs for consumers.

What Do You Think?

Tariffs are a multifaceted tool that have shaped economic and trade policies throughout U.S. history. Their impact on manufacturers varies widely depending on perspective, industry, and the specific terms of trade agreements. Whether viewed as a means of promoting domestic growth or as a hindrance to global trade, tariffs remain a critical and often controversial element of economic strategy. For manufacturers and industry professionals, understanding tariffs is essential to navigating both opportunities and challenges in an increasingly interconnected world.

So, what do you think? Are tariffs a necessary safeguard for domestic industries, or do they do more harm than good?