Trump's trade war hits home for small Waco businesses

[Elderberry]

WacoTrib 7/16/2018 by Lauren Dodd

As Trump’s trade war plays out on the world stage, local small businesses are feeling the pinch and looking for strategies to ride out the storm.

On June 1, the Trump administration imposed a 25 percent tariff on steel and a 10 percent increase on aluminum, from three of America’s largest trade partners: the European Union, Mexico, and Canada.

But local businesses say they felt the price hikes months ago when the tariffs were just talk.

Kevin Wells, president of Wells Ag Company, survived the 2002-03 steel tariffs, under the George W. Bush administration, but said this round of tariffs feels different.

“During that time (the Bush tariffs) it was basically a period of stagnation,” he said. “We didn’t fire anybody, we didn’t lay anybody off, our profits went way down but we were able to maintain what we had. But now it feels like we’re losing.”

His company, one his father started 22 years ago, manufactures and sells steel tractor canopies. Wells Ag Company employs as many as 10 employees during the busy summer months, but this summer, with the tariffs’ impact in mind, he limited his staff to six.

“We’re just trying to cut costs however we can,” he said.

Since talk of the tariffs began in January, Wells said he has watched the price of steel rise. Now, in his most productive summer months, Wells is grappling with steel price hikes of 25 to 40 percent.

More: https://www.wacotrib.com/news/politics/trump-s-trade-war-hits-home-for-small-waco-businesses/article_39ee422a-ce18-58a8-a5bb-0e3f9f5b8350.html