Curtis Industries feels sting of Trump's tariffs
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George Psyhojos, president and CEO of Curtis Industries.
Several Central Mass. manufacturers have said their costs are skyrocketing due to President Donald Trump’s 25-percent tariffs on steel imports from Europe, Canada and Mexico. One of those companies is small vehicle cab manufacturer Curtis Industries. President and CEO George Psyhojos spoke with the WBJ about how the tariffs are affecting the company and American manufacturers.
Have steel tariffs affected Curtis Industries?
Absolutely. We’re worried because it’s increased our costs by quite a bit. A fair amount of our raw material input is steel, and we’ve seen those costs go up roughly 50 percent in the past 24 months.
Why so high if the tariffs were only 25 percent?
The prices had gone up in anticipation of the tariffs and for other business reasons.
Has the company done any lobbying to convince the government to act on these tariffs?
We haven’t thus far. We’re one of the many smaller companies that don’t really have the scale to put forth a huge lobbying effort. That said, we’re going to get hit hard with tariffs and a lot of other things that are popping up.
What other things?
We bring in various components from Canada, Asia and Europe. We’re hoping a lot of the talk of tariffs are a lot of noise and will go away. If they don’t, it will be problematic for us and anyone else that manufactures products and consumes parts and/or materials.
Could these increasing costs lead to cuts at the company?
No cuts are eyed right now. Our business is growing, and the last thing we want to do is cut staff. We still have an obligation to fulfill purchase orders, but it’s eating into our profitability. Some we can pass through to customers and certain customers are willing to entertain surcharges associated with tariffs.
What are your thoughts on the Trump Administration’s pumping of American manufacturing and how have these policies conflicted with that narrative?
I tend to be a free-market kind of guy, and I like less government intrusion all round. That said, I think some of the policies the past administration put in place have been counter to use manufacturers. I’m happy to see some of those getting changed.
But, I don’t think hard tariffs which affect us manufacturers are necessarily the answer.
Is it a good thing companies would be forced to purchase more American-made steel?
If the U.S. had the capacity to produce the steel domestically at prices we’re getting now, I would agree with anybody that this is a good thing for American businesses. But, the reality is we don’t have the capacity to supply steel. Consequently, pricing has skyrocketed.
This interview was conducted and edited for length and clarity by WBJ Staff Writer Zachary Comeau.
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