| FOR IMMEDIATE RELEASE May 20, 2025 Contact: [email protected] |
Tennessee small business owners are sounding the alarm about the real-world consequences of the Trump Administration’s across the board tariffs. From pencils to audio equipment, Tennesseeans are sharing a common message: tariffs are driving up costs, creating instability, and making it harder to plan for the future.
WBIR | Model train company based in Tennessee faces uncertainty over Trump tariffs
Even after the Trump Administration’s temporary truce with China lowered tariffs to around 30%, Tennessee small business Scale Trains is still struggling to stay on track. The model train company says it’s been absorbing significant costs, with prices on some products jumping from $300 to $500 under previous tariffs.
“There is no factory anywhere in the world ready to accept customers like ourselves here in the United States,” said Shane Wilson, president of the 30-person business. He estimates it would cost $10 million to move manufacturing to the U.S., or $5 million to relocate to countries like India or Thailand.
While the U.S. and China agreed Monday to pause most of the tariffs on each other’s goods for 90 days, as CNBC reports, [Alex Jacobsen, President and Owner of Auratone] says his company will be expected to pay an additional $20,000, if not more, in new import taxes due to ongoing trade negotiations.
“You can absorb a 10% to 15% increase, but when you get hit with 170%, that’s a different story,” Jacobsen says, explaining the cumulative effect of the recent 145% rate on top of existing 25% tariffs on Chinese parts for his company.
The Washington Post | Trump used pencils to sell tariffs. This factory in ‘Pencil City’ is split.
At an inventory meeting Tuesday in the conference room above the factory, [Scott Johnson, Musgrave President] studied a spreadsheet of price estimates.
“That one is more than double the tariffed price from China,” he said, looking the cost of graphite cores from the Czech Republic.
“Wow,” an employee replied.
“So,” he said. “We are still going to source graphite cores from China.”
Walta Patt, who owns Powell Florist, said Mother’s Day is known as the “Super Bowl of Florists.” But the tariffs could increase prices because several kinds of cut flowers are sourced from outside the United States…
For the most part, she said she and other businesses have been able to absorb some increased costs from tariffs. However, she said that they may not be able to absorb prices forever.
###
Tariffs Cost US is a new campaign dedicated to providing the public with reliable, comprehensive information about global trade and tariffs, and their impact on both businesses and consumers.
