Did you know that at least six major companies are quietly shifting production supply lines due to tariff turmoil? (The major sources for this column come from the YouTube video “6 Major Companies Exit U.S. Market Amid Tariff Turmoil” and from Google searches of manufacturing facilities in the U.S and China.)

Shein, emphasizing low-cost clothing, and Temu, offering a wider variety of products, have been popular online market websites whose business models relied on very cheap goods produced in China. Both sites used direct selling of goods by mail which fell under the $800 limit for direct mailing, thus avoiding import tariffs. The goods were sometimes of questionable quality with the potential for harmful chemicals. But the prices were very low; $5 for a dress, for instance, and the chance of being at the forefront of fashion shifts. The imposition of tariff changes has affected this business model.

MGA, the American company based in California, produced most of the world’s toys in China until the tariff trade wars. Production has shifted to India, Vietnam, and Indonesia as a result. All the changes increase costs and create uncertainty, but also weaken China economically.

Alcoa: Alcoa aluminum used to be able to get its tariff-free aluminum shipped from Canada to the U.S. No more. Tariffs on Canadian aluminum have forced Alcoa to ship what its Canadian factories produce to Europe. Now aluminum needed in the U.S. comes from Australia. Expenses have changed from a short railroad trip to a weeks-long sea voyage.

These rerouted supply lines are inefficient, expensive, and polluting.

Here’s a list of where aluminum products are manufactured in the U.S: soda and beer cans are produced in Pennsylvania, California, Massachusetts, and Missouri. Cars are made in Alabama, Georgia, California, Texas, Michigan, and Kentucky.

Airplanes (think Boeing) are produced in Washington, Kansas, and South Carolina. The aluminum for airplanes in South Carolina come from West Virginian factories.

John Deere, an American icon, has seen tariff costs rise $500 million. These costs hit both imported parts and exports. Since John Deere sells its tractors to farmers, the price of food will eventually rise, causing inflation for American consumers. Higher costs mean that John Deere’s competitors are given a price advantage, especially the Chinese.

Apple, which produces the iPhone, has shifted its production to India from China, causing billions of dollars to be invested in building factories there. With added tariffs added to Indian companies due to India buying oil from Russia, uncertainty and waste reign. But with the growing Indian appetite for iPhones, India’s economy is booming, reshaping the tech market.

Diversification and resilience have become the new watchwords. Companies are spreading out where they get their raw materials and where they produce their finished products. Uncertainty demands diversification.

Stellantis, the new auto company based on the mergers of Fiat, Chrysler, and PSA has seen a 25% tariff on imported vehicles and parts. This tariff has forced layoffs and a plant closure. The Jeep Cherokee plant in Illinois is an example. Stellantis has shifted its manufacturing to cheaper Mexican plants, causing the United Auto Workers Union to criticize the move as unfair to them because of the USMCA trade deal with Mexico.

All these effects are the opposite of that which protectionist policies were meant to create. Auto vehicle parts are produced worldwide. Tariffs are a ham-handed attempt to produce “made in America” jobs, but in the process, supply line inefficiencies and manufacturing costs are rising.

The longer the tariffs and uncertainty continue, the greater the damage to U.S. jobs and manufacturing. Inflation will increase as higher costs are passed on to American consumers.

It’s doubtful that the manner in which tariffs have been imposed will result in what the Administration intended. International trade is complex. Change is costly. Trade relies upon certainty, not chaos and constantly shifting policies.

All the changes and tariffs are a form of taxation that will eventually be paid by the American consumer, either through higher prices, or the loss of jobs. Those costs have been delayed because American companies stocked up before the tariffs were imposed, but those stored supplies are being consumed. Administration threats will only delay companies from passing on their increased costs. Companies exist to make a profit.

You and I, the consumers, will eventually pay for all these changes. That’s actually what Americans really voted for in November 2024.

Ignorance is not bliss.