The reality that Trump’s administration refuses to
acknowledge is simple: tariffs are a tax paid by American consumers and
businesses, not foreign countries. When the administration boasts about
“billions” in tariff revenue flowing into U.S. coffers, they’re celebrating
money extracted from the pockets of American companies and working families who
ultimately pay higher prices for goods.
A devastating survey conducted
by Polaris MEP, Rhode Island Commerce Corporation, and the Rhode Island
Manufacturers Association between May 20 and June 27, 2025, reveals the
carnage. Of nearly 100 Rhode Island manufacturers surveyed, a staggering 78.3%
reported they either have or plan to adjust prices due to federal tariff
changes – meaning Rhode Island families will pay more for everything from food
to medical devices.
“President Trump set U.S. tariffs at their highest rate since the 1930s, and, as this snapshot shows, his tariff taxes create a lot of new costs, uncertainty, and instability that negatively impacts businesses and consumers alike,” said U.S. Senator Jack Reed, warning that these impacts will worsen the longer the administration maintains its chaotic approach.
The numbers paint a picture of systematic destruction of
Rhode Island’s manufacturing base. A crushing 86% of all respondents said
tariff changes negatively impacted their Cost of Goods Sold, while 76% reported
damage to their bottom line. Perhaps most troubling, 62% reported negative
impacts to their investment plans – meaning fewer jobs and less economic growth
for Rhode Island workers.
The human cost becomes clear in the manufacturers’ own
words. One business owner shared: “Sales have slowed by 60% [because] of
economic uncertainty. I’m trying to avoid layoffs. I prepurchased a number of
components [because] vendors told me prices would rise so that was a big outlay
of cash.”
Another manufacturer described the impossible situation:
“The lack of actual policy from the administration has made it impossible to
make meaningful business decisions. Inventory planning, capital investments,
and hiring are all on hold. I am hearing this from nearly all of my
manufacturing partners in RI and across the country.”
This reflects Trump’s consistent pattern of tough talk
followed by policy chaos – what critics call his TACO approach (Trump Always
Chickens Out). His administration has left tens of thousands of businesses in
limbo, unable to make critical investment decisions because they don’t know if
tariff rates will stick or when they might suddenly change.
The Bloomberg report illustrates this chaos through the
experiences of small businesses that appeared on Shark Tank, representing the
entrepreneurial spirit Trump claims to champion. These companies reveal the
impossible choices facing American manufacturers.
Michael Benarde of Night Cap It LLC explained the brutal
math: “We originally made the first batch in the US. I think we made 5,000 of
them in the first run, and it cost us $4.40 per scrunchie, which was just not a
sustainable number at all.” His company was forced to move production to China
just to survive.
Now, Trump’s tariff chaos has left Benarde unable to price
products correctly. “I can’t price things correctly, because I don’t know
what’s going on. There’s no clarity on it whatsoever,” he said, describing how
a $6,000 order suddenly faced a $1,200 tariff his customer had to pay.
Benarde’s suggestion reveals the arbitrary nature of Trump’s
policy: “Personally, I think it should be illegal to not have a, say, 90-day
notice of tariffs. Because if you’re halfway through production or you’re about
to load a large order of stuff onto the boat and they put a tariff on you,
right then, you’re screwed.”
The experiences of Click & Carry founder Kimberly
Meckwood demonstrate how tariffs can be effective when combined with government
support – but Trump offers none. She spent $10,000 in R&D exploring U.S.
manufacturing, only to discover a U.S. mold would cost $65,000 versus $26,000
in China, with an additional half-million in manufacturing costs.
“I want an American product. At this time, it’s just not
feasible,” Meckwood explained. “What could make it feasible is if the US
offered some sort of stipend or incentive for small to medium-size businesses,
kind of like how China helps companies. If the objective is bringing
manufacturing back to the US, then why in the world would Trump allow Apple and
Microsoft to have exemptions and not those of us who are small and medium-size
businesses?”
This reveals the hypocrisy at the heart of Trump’s approach.
While small businesses struggle under crushing tariff burdens, large
corporations with deep pockets and lobbying muscle – like Apple Inc. – receive
exemptions. The designed-in-America, made-in-China model that built countless
small businesses is being destroyed, but only for companies that lack political
influence.
Ben Baltes of Toybox Labs explained the complexity Trump
ignores: “A lot of people think you can just move these supply chains over.
It’s not that simple.” For 3D printers, “there’s these levels of the supply
chain that are all based in China. The motors are made out of wires, which are
all made in China, and then magnets. China owns like, you know, 95% of the
world supply of magnets.”
The constitutional crisis underlying Trump’s tariff war
cannot be ignored. Congress is supposed to have primary authority over tariffs,
but Trump has illegally used the International Emergency Economic Powers Act of
1977, claiming our trade deficit – built over decades through capitalistic
greed and cheap overseas manufacturing – is suddenly a national emergency.
Trump has weaponized laws intended for actual emergencies to
override Congress on immigration, war powers, and now tariffs. This represents
a fundamental assault on the separation of powers and democratic governance.
Back in Rhode Island, the impact is devastating specific
industries. An overwhelming 93% of food manufacturers, medical technology, and
life sciences companies reported negative impacts to their bottom line. These
are sectors critical to Rhode Island’s economic future, now under assault by
Trump’s policies.
“President Trump’s tariff policy is sowing chaos for
manufacturers and threatening the livelihoods of small business owners,” said
U.S. Senator Sheldon Whitehouse. “In Rhode Island, manufacturers are hesitant
about whether to invest or reroute supply chains, and small businesses are
being forced to pass on higher costs to stay afloat.”
U.S. Representative Seth Magaziner confirmed the broader
impact: “This survey confirms that the Trump Administration’s tariffs are
hurting Rhode Island manufacturers and the people they employ. We need
predictable trade policies that lower costs and support industry, not the
chaotic approach we have seen in recent months that is only making life harder
for working people and local businesses.”
The irony is crushing. Trump’s policies, supposedly designed
to help American workers and businesses, are systematically destroying the
small manufacturers that form the backbone of Rhode Island’s economy.
Meanwhile, the tariff revenue Trump celebrates comes directly from the pockets
of Rhode Island families paying higher prices for everything from food to
medical devices.
As one manufacturer noted: “Our raw glass has gone up 10%
across the board even before the tariffs went into effect.” This preview of
what’s coming should terrify every Rhode Island family already struggling with
rising costs.
The survey’s architects are now working with policymakers to
develop programs responding to the crisis, but the damage is already done. As
RIMA Executive Director Dave Chenevert observed: “Behind every percentage point
is a business owner struggling to keep their doors open, to avoid layoffs, or
to manage skyrocketing costs.”
Trump’s tariff chaos represents everything wrong with
plutocratic capitalism – policies that benefit the wealthy and connected while
crushing small businesses and working families. Rhode Island manufacturers are
paying the price for an administration that prioritizes political theater over
economic reality.
