Trump’s tariffs are choking small US manufacturers
EarthQuaker Devices has served Smashing Pumpkins, PJ Harvey and Radiohead but says tariffs add costs up to 30%
TL;DR
- EarthQuaker Devices, a manufacturer of handmade guitar pedals, faces up to a 30% increase in costs due to tariffs.
- The company, which supplies pedals to artists like Smashing Pumpkins and Radiohead, has absorbed all tariff-related cost increases so far.
- Tariffs are negatively impacting hiring and operations at EarthQuaker Devices, with staff diverted to financial forecasting.
- A report indicates that one in three manufacturing companies in northeast Ohio are affected by tariff costs, with losses nearly double any related gains.
- Northeast Ohio manufacturers often rely on imported components not produced in sufficient quantities domestically.
- The region, once an industrial hub, is struggling with economic decline, layoffs, and reduced innovation due to tariffs.
- Some companies are exploring tariff workarounds like foreign trade zones, but overall cargo through the port of Cleveland has decreased.
- Despite challenges, some manufacturers express optimism for growth, though small businesses are disproportionately affected.