As a proud American manufacturer with a legacy spanning 67 years, our company has weathered countless challenges. Founded by an Army veteran and built on the values of hard work and patriotism, we’ve always believed in the strength of American industry. But today, we face a policy challenge that threatens not only our livelihood but the broader manufacturing landscape in the United States.
The issue at hand is trade policy — specifically, the tariffs that have been imposed or are being proposed. While the intention behind these tariffs may be to protect American interests, the reality is far more complex. For companies like ours, these tariffs are not just a tax; they are an existential threat.
Here’s why: as an S Corporation, our net income flows directly to our tax returns. If tariffs wipe out our income, it’s akin to a 100% income tax. There’s no profit, no reinvestment and no sustainability. This isn’t just a theoretical concern — it’s a very real possibility. If our paycheck goes to zero, how do we pay our bills? How do we reinvest in our business? How do we survive?
The current administration’s message may be that other countries will bear the cost of these tariffs, but the truth is that the burden falls squarely on American manufacturers and, ultimately, the American consumer. Vehicle prices are already too high, and these tariffs will only push them higher. Inflationary pressures are mounting, and the Federal Reserve’s decision to hold off on rate changes underscores the precariousness of the situation.
Moreover, the notion that we can quickly pivot to domestic sourcing is a fallacy. Transitioning manufacturing processes is not an overnight fix — it’s a long-term endeavor that requires careful planning and significant investment. For example, changing suppliers for a single component can take six to seven months. And even if we wanted to pivot entirely to U.S. sources, there’s no guarantee that the capacity exists to meet demand.
This is not about politics. It’s about facts. It’s about the survival of American manufacturing. We are not opposed to bringing production back to the U.S., but it must be done thoughtfully and sustainably. A 30-day policy window cannot address challenges that have been decades in the making.
There is an assumption that foreign countries will pay the tariffs, and it penalizes them, but the fact is the tariffs are paid by U.S. companies when the products cross the borders. Our message to policymakers is simple: consider the real-world implications of these decisions. Protecting American manufacturing requires more than tariffs, it requires a comprehensive strategy that supports businesses, employees, and consumers alike. Let’s work together to ensure that the legacy of American industry not only survives but thrives.
Chuck Dardas is the President & COO of AlphaUSA, a Livonia-based automotive manufacturing company.