America’s manufacturers are scrambling to change the way they do business — from finding new suppliers to shifting more finishing work overseas — as the sting of tariffs begins to take a bigger toll on their bottom lines.
A range of recent reports have underscored fault lines in what had been a growing part of the economy. They all point to waning optimism because of a tight labor market, uncertainty over the stock market, rising interest rates — and especially trade issues.
Ben Bidwell, director of U.S. customs at C.H. Robinson, said clients have been swarming to the Eden Prairie, Minn.-based logistics giant for help. They are hiring trade attorneys, renegotiating with custom brokers and hiring consultants in record numbers to mitigate the damage of trade tariffs.
“Collectively, our customs and trade policy group have never been busier than they are today,” Bidwell said. “They are inundated with calls from clients (seeking help) with tariff classification processes and looking at things like alternative importing sources, foreign trade zone options and import duty drawbacks. All those things are happening at such large numbers — and, yes, this is certainly costing importers money.”