Politics - News Analysis

Sad Trump Supporter Might Be Forced to Move Business to Mexico Over Trump Tariffs, ‘I Feel Betrayed!’

A businessman in Michigan who openly admits he voted for Donald Trump might be forced to move his factory to Mexico because of the devastating impact that Trump’s tariffs have had on his business.

According to the New York Times, Pat LeBlanc, chairman of EBW Electronics based in Michigan, complained that the tariffs that resulted from the president’s trade wars will cut his profits in half and that he may have to move production to Mexico.

“It’s killing us,” the Republican LeBlanc admitted. “I just feel so betrayed. If we fail because the company is being harmed by the government, that just makes me sick.”

American factories that buy steel and aluminum — now more expensive — are struggling to pass on extra costs to their customers. Some are losing orders to overseas competitors that can buy metal free of American tariffs. Companies that import electronics and other parts are scrambling to remain profitable while exploring alternatives, such as moving plants beyond reach of the duties.

“It’s a tax that comes right off the bottom line,” said EBW’s president, Cory Steeby. “It totally incentivizes you to move out of the United States and build either in Canada or Mexico. These are active conversations right now.”

Another Trump supporter says Trump’s tariffs have been a “disaster.”

Larry Kooiker voted for Trump and says the tariffs on components have been poorly conceived.

“It’s just been a disaster,” he said.

The steel tariffs were supposed to give American steel makers protection in the face of unfair competition from China. But Kooiker accuses American steel makers of profiteering at his expense, using the tariffs as an opportunity to raise prices by 25 percent.

“They are very much taking advantage of the situation,” he said. “As soon as they are not squeezed, they become the squeezer.”

Agritek has passed on the extra costs for steel to customers through surcharges. But it recently lost an order worth $1 million a year making steel axles used in wheeled trash bins — a major hit for a company with some $16 million in annual sales.

Another Michigan Trump supporter is upset about the tariffs, but says he is willing to wait and stick it out.

“Even though it’s hurting me, I hope we have the guts to stick it out,” said Tom Sligh, president of Billco Products, which makes cabinets, dressers and other furniture for hotels at three factories in Holland, Michigan.

Sligh relies on imported quartz countertops and metal parts — door handles, gliders and other hardware — much of it made in China.

The tariffs have increased his costs by 10 percent, he said, but he has not been able to pass them on. He recently lost a bid to outfit a hotel in Grand Rapids when a Chinese competitor offered less than half his price.

He slashed Christmas bonuses for his factory workers. He has decreased purchases from Chinese factories to avoid tariffs, though this has not translated into extra orders for American companies. He has shifted to suppliers in Vietnam, Malaysia and India. The parts he needs are not available in the United States, or are wildly expensive, he said.

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