Small manufacturers across the United States are sounding a note of distress, claiming that the tariff regime implemented under the Trump administration is squeezing their operations, despite promises to revitalise American industry. One poignant example comes from the world of music, where a boutique effects pedal company says the policy is hitting its bottom line hard.
The Sound of Strain: Tariffs Amplify Costs for Niche Manufacturer
At EarthQuaker Devices in Akron, Ohio, Julie Robbins and her team hand-build guitar pedals sought after by legendary acts like The Smashing Pumpkins, Radiohead, and PJ Harvey. Their popular 'Plumes' model has sold more than 67,000 units. However, the harmony of their business is being disrupted. The company reports that tariffs are adding up to 30% to their production costs, as many of the over 1,000 components used in their pedals are imported from countries like China and Vietnam or sourced from US distributors who import them.
"The tariffs are of no benefit to manufacturing in America," states Robbins bluntly. She argues that the stated goals of reshoring jobs, negotiating better trade terms, and raising Treasury revenue are contradictory. "It's just not possible to do all those things simultaneously. It feels like gaslighting." To date, EarthQuaker has absorbed all the extra cost, but Robbins says this is no longer sustainable and has prevented the creation of new jobs.
A Regional Backbone Under Pressure
The impact extends far beyond one workshop. Northeast Ohio, encompassing Cleveland, Youngstown, and Akron, was once an industrial powerhouse. Now, a recent report reveals that one in three manufacturers in the area report being negatively affected by tariff costs. Their losses linked to tariffs stand at 16%, nearly double any related gains of 9%.
"Northeast Ohio producers are often reliant on inputs that are simply not being produced in vast quantities within the US, even with tariffs in place," explains Jonathan Ernest, an assistant professor of economics at Case Western Reserve University in Cleveland. He notes that domestic production would require a substantial price increase to become feasible.
This is a significant setback for a region that has been fighting to revive its manufacturing base after losing half its population in the latter 20th century. The area is now shedding thousands of jobs a year at a rate higher than other Midwestern states. In August, a major employer announced the closure of two plants due to poor earnings.
Innovation Deferred and a Slow Path Forward
The broader economic uncertainty is causing strategic paralysis. A report by the Manufacturing Advocacy and Growth Network (Magnet) found that only 9% of manufacturers have brought back production from overseas this year. Furthermore, smaller firms are deferring non-essential projects like research & development and new product launches to maintain short-term stability.
Professor Ernest does not foresee a quick reshoring rebound. "The long lead-time means that any substantial growth in the manufacturing sector would take years," he says, adding that while US manufacturing employment has fallen, output has continued to rise.
Some businesses are exploring workarounds like Foreign Trade Zones to defer duty payments. David Gutheil, Chief Operating Officer at the Port of Cleveland, notes a busy year for such activations but also reports a 15-20% fall in cargo, attributed to tariffs. Importers using the port are reporting significant stress.
While the Magnet report indicates two-thirds of manufacturers are optimistic about growth in 2026, the present for small businesses like EarthQuaker is one of administrative burden and uncertainty. Staff have been diverted from crafting pedals to managing complex profit and loss forecasts to navigate the changing tariff landscape.
Robbins highlights a cruel twist: a $50,000 state grant tied to job creation is now being recalled, partly due to the economic forces unleashed by the tariffs. "The only reason we do this is to have jobs. It's not cheaper or easier than doing anything else," she says, emphasising the team's dedication to their craft. For now, that craft is being tested not by market competition, but by trade policy.
