President Donald Trump has pledged a revitalization of American industry, stating, “Jobs and factories will come roaring back into our country, and you see it happening already. We will supercharge our domestic industrial base. We will pry open foreign markets and break down foreign trade barriers. And ultimately, more production at home will mean stronger competition and lower prices for consumers.”
That promise appears to be materializing as domestic manufacturers experience a notable uptick in demand, largely driven by tariffs imposed on Chinese goods. With levies as high as 145%, U.S.-made products are becoming more price-competitive, prompting many companies to rethink their reliance on Chinese suppliers.
Small and mid-sized manufacturers in particular are reporting significant growth. One example is Jergens Inc., a tooling company based in the Midwest with fewer than 500 employees. The company is working around the clock to meet heightened demand. “We are running 24 hours a day, seven days a week,” said Jergens president Jack Schron, according to The Wall Street Journal. “We are swamped.” Much of the new business stems from clients seeking to avoid import taxes, along with consistent orders tied to the defense sector.
This surge in domestic activity has coincided with a slowdown in Chinese manufacturing. Trump, who introduced the tariff hikes last month, had forecasted that the policy would yield benefits for both American producers and consumers.
Grand River Rubber & Plastics, an Ohio-based manufacturer, is among those seeing a shift in customer behavior. The company told the Journal that clients who had previously moved operations to China are now returning. In one instance, two former clients resumed business within days of each other, and two new oil filter companies have also come on board. These developments could generate up to $5 million annually—about 10% of Grand River’s total revenue.
SafeSource Direct, a Louisiana medical supply firm, also anticipates downward pressure on prices as more goods are made domestically. The company has quadrupled its production lines, going from two to eight, with each producing over 20,000 rubber gloves per hour. As efficiency improves, executives expect to reduce manufacturing costs substantially. “We think we can get extremely close to Asian prices,” said Steve Mott, a partner at the firm, as reported by the Journal.
Good news. And Trump had predicted these positive events…