U.S. Production Shortage: Why "Made in America" is Difficult to Source
14 April 2025 路 Uncategorized 路
Source: 路 https://finance.technews.tw/2025/04/14/us-manufacturer-do-not-believe-us-production/
The substantial U.S. tariffs of 145% on Chinese goods, met with China鈥檚 retaliatory duties of 125%, have significantly disrupted trade between the two nations. These measures are impacting more than just technology companies; numerous consumer product importers in America鈥攔anging from toy manufacturers to publishers and fireworks producers鈥攔eport struggling to remain viable under such high tariff rates.
For four decades, particularly since China鈥檚 accession to the World Trade Organization (WTO) in 2001, Americans have relied heavily on Chinese factories for a wide range of goods, including smartphones and Christmas decorations. As economic and geopolitical tensions between these major rivals escalated over the past decade, Mexico and Canada emerged as America's primary sources of imported goods and services.
However, despite this shift, China remains third overall in import value behind only Mexico, continuing to dominate many product categories according to a report by Macquarie Investment Bank. The U.S. imports 97% of its strollers, 96% of artificial flowers and umbrellas, 95% of fireworks, 93% of children's coloring books, and 90% of combs from China.
President Trump鈥檚 tariff policies aimed to incentivize manufacturing relocation back to the United States; however, importers contend that this goal is unrealistic. One toy company with forty years of production in China stated it had a survival plan for an initial 40% tariff but faced insurmountable cost increases鈥攆rom $23 million to over one billion dollars鈥攁s tariffs rose as high as 145%.
MGA Entertainment, producer of dolls like Bratz, reports that approximately 65 percent of its products are manufactured in Chinese factories and plans to reduce this reliance to around 40% by year-end. MGA also maintains production facilities in India, Vietnam, and Cambodia. The price for a single Bratz doll is projected to increase from $15 to as much as $40 during holiday seasons.
A company specializing in educational robots and puzzle games employs roughly 90 percent of its staff domestically but manufactures approximately two thousand products (around sixty percent) in China鈥攁 practice that has become economically unsustainable overnight, according to the company鈥檚 CEO. The CEO dismissed President Trump's call for factories to return to the U.S. as unrealistic due to a lack of willing and capable American manufacturers.
Another firm preparing production lines for ergonomic chairs found costs would be 25-30% higher with local producers, compounded by a shortage of skilled labor in America inclined towards manufacturing these products.
The CEO of the U.S. Fashion Industry Association stated that many companies have been compelled to cancel orders due to high tariffs on Chinese imports, resulting in immediate sales losses for small businesses lacking alternative sourcing options.
For four decades, particularly since China鈥檚 accession to the World Trade Organization (WTO) in 2001, Americans have relied heavily on Chinese factories for a wide range of goods, including smartphones and Christmas decorations. As economic and geopolitical tensions between these major rivals escalated over the past decade, Mexico and Canada emerged as America's primary sources of imported goods and services.
However, despite this shift, China remains third overall in import value behind only Mexico, continuing to dominate many product categories according to a report by Macquarie Investment Bank. The U.S. imports 97% of its strollers, 96% of artificial flowers and umbrellas, 95% of fireworks, 93% of children's coloring books, and 90% of combs from China.
President Trump鈥檚 tariff policies aimed to incentivize manufacturing relocation back to the United States; however, importers contend that this goal is unrealistic. One toy company with forty years of production in China stated it had a survival plan for an initial 40% tariff but faced insurmountable cost increases鈥攆rom $23 million to over one billion dollars鈥攁s tariffs rose as high as 145%.
MGA Entertainment, producer of dolls like Bratz, reports that approximately 65 percent of its products are manufactured in Chinese factories and plans to reduce this reliance to around 40% by year-end. MGA also maintains production facilities in India, Vietnam, and Cambodia. The price for a single Bratz doll is projected to increase from $15 to as much as $40 during holiday seasons.
A company specializing in educational robots and puzzle games employs roughly 90 percent of its staff domestically but manufactures approximately two thousand products (around sixty percent) in China鈥攁 practice that has become economically unsustainable overnight, according to the company鈥檚 CEO. The CEO dismissed President Trump's call for factories to return to the U.S. as unrealistic due to a lack of willing and capable American manufacturers.
Another firm preparing production lines for ergonomic chairs found costs would be 25-30% higher with local producers, compounded by a shortage of skilled labor in America inclined towards manufacturing these products.
The CEO of the U.S. Fashion Industry Association stated that many companies have been compelled to cancel orders due to high tariffs on Chinese imports, resulting in immediate sales losses for small businesses lacking alternative sourcing options.