SALT LAKE CITY — With the U.S. and China’s trade war at the center of business conversations across the nation, U.S. Small Business Administration Administrator Kelly Loeffler on Tuesday paid the Beehive State a visit to talk tariffs.
President Donald Trump last week said an 80% tariff on Chinese goods “seems right,” suggesting for the first time a specific alternative to the 145% levies he has imposed on Chinese imports ahead of closely watched weekend talks between the two countries.
Loeffler’s visit to Utah took her to Davis Technical College and then to Paramount Manufacturing, a Salt Lake manufacturing facility that makes parts for defense, aerospace, medical and mining industries, to name a few.
“We see these investments taking place all over the country, but especially here in Utah, where we have such a pro-business, pro-manufacturing environment,” Loeffler said. “President Trump’s agenda is ‘made in America.’ We’ve got that going again full force, finally, after decades of our manufacturing sector being hollowed out.”
Her stop was part of a larger tour announcing the Small Business Administration’s “Made in America Manufacturing” initiative that aims to “cut $100B in burdensome regulation, expand access to capital, invest in workforce development, and build a dedicated infrastructure to help small manufacturers thrive,” according to a release from the administration.
Loeffler pointed to Trump’s Tuesday announcement that the United States will lift long-standing sanctions on Syria, and a $600 billion commitment from Saudi Arabia to invest in the U.S.
“We just continue to rack up the wins. Now, we need to make sure we have a skilled workforce ready to get our manufacturing even further upfield here in America,” Loeffler said.
But some businesses in Utah are already feeling the impact of tariffs, and for those who rely on expensive machinery and parts from China and other countries, the promise of manufacturing eventually moving to America isn’t easing the immediate financial burden felt because of the increased tariffs.
Megan Ware, interim president of the Utah Manufacturers Association, said she knows about a company in St. George that requires a specific machine to manufacture its products.
“The machine they need to make this product is only made (in a certain country), and they’re facing this issue of, they bought the machine, they preordered the machine and now they’re looking at a more expensive machine because of the tariff, now that it’s time for delivery,” Ware said. “They’re looking at another $250,000 of cost, which a small business just can’t absorb.”
In a Pew Research poll from April, Trump’s tariff policies sat at a 39% approval rating. According to the Associated Press, 77% of Americans believe the tariffs will increase the cost of goods.
“Some of the biggest issues surrounding the tariffs is, perhaps materials and goods that they quite legitimately don’t make in the U.S. or a machine that is an automated machine that is not made in the U.S.,” Ware said.
To that point, Loeffler said the administration is working to connect manufacturers with a supply chain that “already exists in America.”
“We’re also doubling the size of our manufacturing loans. So that to the extent people need capital now to make those investments, we will be able to help them fund those purchases,” Loeffler said. “What we see happening across this country is more orders coming into factories; we see more skilled labor coming into these jobs, and so it’s just going to be an on-ramp that is going to take a period of adjustment, but that’s already underway.”
While the U.S. Small Business Administration isn’t responsible for crafting tariff policy or negotiating trade deals, it is responsible for helping small businesses navigate challenges they may face.
Ware said that she hopes the administration can provide more education for companies to understand the current trade landscape and what some long-term implications may be. She also mentioned advocacy.
“Making sure that our legislators understand that there’s got to be a better ramp up period for these companies. Zero to 100 is not easy but if they have a ramp up period, they can make these adjustments a little easier,” Ware said.
Ware added World Trade Center Utah has a tariff dashboard that updates tariff policies daily as a resource for businesses and groups like the Utah Manufacturers Association.
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