Readers speak out on tariffs: PMM Insight

Transcript

For more than a month now, I have consumed a large daily dose of economic news featuring President Trump’s tariffs, trade policies, inflation predictions, opinion columns and surveys. I mostly find it interesting, but one thing has been largely missing: What do plastics processors and machinery builders say about what’s happening to their businesses? Now we have the answer. 

PMM finished a survey this week asking our audience how they are faring? Are they seeing delays from their customers in current and planned programs, and what are they changing in their own machinery purchase plans? 

This is the most current information you will find. Here are a couple of results: 

• What effect do you expect the Trump administration’s trade policies will have on your business? 75 percent said the impact would be negative compared with just 18 percent who believed they would be positive. 

• Are you seeing indecision or delays on programs because of tariff issues? 85 percent said Yes and 15 percent said No.  

• Are you changing or delaying equipment purchases because of the tariffs? 61 percent said they are delaying purchases, 33 percent reported no change in their plans and 3 percent said they planned to make purchases sooner. 

It is a bit subjective on my part, but it looks like plastics processors expect a more difficult road ahead than do manufacturers in general. Maybe that is because we have been in an economic slump longer than other manufacturing sectors. Maybe it is because the economic indicators that could give plastics processors a boost are trending in the wrong direction. Maybe it is because processors did a great job of ramping up production during the COVID era but have done a poor job of managing since then. 

Whatever the reason, there is not much optimism in plastics land. Here are some of the comments from the survey: 

On the impact of Trump’s trade policies: 

• “We make round parts for injection molding machines (such as screws, check ring valves, nozzles and end caps), and unfortunately, today there are no American steel mills making tool steel round bar. It is all imported, mainly from China and Europe. With the Section 232 tariffs, we are being forced to accept a 25 percent cost penalty in the name of ‘National Security.’ Unfortunately, these tariffs are now a tax as there is no steel mill that will build a new ‘greenfield location’ to produce the materials that we need. As an American manufacturer, we are completely supportive of other American manufacturers’ efforts to remain viable and successful, but targeted tariffs are needed today and not just sweeping across-the-board tariffs.” 

• “Incoming raw materials and component pricing is going up. Customers are spooked as hell and are holding projects.”  

• “All our customers are waiting to make large purchases because of the uncertainty around tariffs. With the addition of the de minimis, even having samples and other items mailed that are under $800 will be difficult.”  

• “This is a wasted effort. The only thing that should be tariffed is mold making. This should have been done 40 years ago. It is too late to change what we have lost in skills. Technology has removed most labor cost regardless of what country it comes from.” 

• “We are quoting so many opportunities to provide American made content which will lead to many more good paying jobs.” 

On the question of indecision or delays on programs because of tariff issues: 

• “Trade liberalization, my ass! TRADE ISOLATION.” 

• “We’d planned to expand our processing operation this Spring, but everything is on hold due to recession concerns.” 

• “It will be great in the long run.” 

• “Customer projects that were funded in December 2024 are mostly on hold.” 

• “How the hell can anyone plan given the arbitrary and capricious nature of this policy?” 

On the question of whether you are changing or delaying equipment purchases: 

• “Waiting for the dust to settle.” 

• “Waiting to see if the tariff issue subsides.” 

• “We acquired new equipment earlier to avoid tariffs.” 

• “When it comes to tariffs, free trade is ignored, and the countries all have resources they export that will be raised. So what’s the point?” 

Reshoring has been raised as one possibility to help the domestic plastics industry. The survey asked respondents if they see tariffs driving more reshoring: 40 percent were unsure, 32 percent said Yes and 28 percent said No. 

You can read a story by PMM Managing Editor Lynne Sherwin about the survey on the PMM website. The headline is “Poll: Tariff chaos is hurting plastics processors.”  

We will repeat this survey in a few months to gauge how things have changed. In the meantime, I’ll keep reading and watching the daily economic news in hopes of figuring things out. 

In the meantime, we publish frequent tariff updates from other Endeavor Business Media brands that can help you. The updates are always linked in the upper right corner of our home page.  

Finally, if you are trying to manage a business, I would also recommend reading a story by senior staff reporter Karen Hanna that posted this week, headlined: “How to manage your business through chaos.” It seems appropriate.