New Mexico Manufacturers Report Severe Impacts from Trump Tariffs
UPDATE: New Mexico manufacturers are facing severe challenges due to President Donald Trump’s tariff measures, with local companies reporting significant cost increases and unpredictability during a legislative hearing on August 1, 2023. Executives from Monti Inc., Acme Mills, and Monarch Litho, Inc. testified before lawmakers in Santa Teresa, an emerging manufacturing hub, detailing how tariffs are affecting their operations and customers.
Plant Manager Nate Duhl of Monti Inc. revealed that his factory, which produces copper busbar—a critical component for electrical infrastructure—has become “100% dependent” on imported materials. Since the tariffs took effect, domestic suppliers have raised prices by 10% to 20% due to decreased competition. Duhl emphasized the dire financial impact, stating the company has passed on over $1 million in additional costs to customers and had to secure $2 million in one lump sum to cover increased expenses.
The unpredictability surrounding the tariffs is causing further strain on operations. Alex Sierra, former manager of Acme Mills, underscored the chaos, saying, “If I have shipping containers on the water, they may arrive to find a 100% tariff applied.”
Commercial printer Guillermo Lopez echoed these concerns, noting that the fluctuating tariff landscape has reduced his company’s market share to unprecedented lows. “We’ve encountered headwinds unlike any we’ve ever seen before,” Duhl lamented, stressing the urgent need for solutions.
During the hearing, state lawmakers Rep. Patti Lundstrom and Sen. James Townsend expressed sympathy for the manufacturers. Townsend remarked, “You got caught in a storm you didn’t see coming.” Lundstrom condemned the rollout of the tariffs for exacerbating already rising construction costs and proposed state intervention to stabilize expenses for manufacturers.
Lawmakers are now considering options such as a state tax rebate or credit to help offset tariff costs. “This would ensure we can continue to invest locally in our workforce and infrastructure,” Duhl urged.
As state officials deliberate potential solutions, the immediate future for New Mexico manufacturers hangs in the balance. The ramifications of these tariffs not only threaten local businesses but could also ripple through the broader economy, impacting consumers and employment in the region.
Next Steps: Stakeholders are calling for urgent legislative action to address these tariff challenges. Local companies are advocating for immediate support to mitigate the financial burdens imposed by the tariffs and maintain their operations in New Mexico. With the deadline for potential interventions looming, the clock is ticking for lawmakers to respond effectively to this economic crisis.
