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How this Trump supporter’s manufacturing business is getting crushed by the president’s tariffs

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Why This Matters

This article highlights how tariffs implemented under President Trump have negatively impacted small manufacturing businesses like Allen Engineering Corp., leading to increased costs, reduced sales, and job cuts. It underscores the unintended consequences of protectionist trade policies on American manufacturers and workers, emphasizing the need for balanced economic strategies. For consumers and the industry, it serves as a cautionary tale about the complexities of tariffs and their real-world effects.

Key Takeaways

Arkansas business owner Jay Allen voted for Trump on the belief that his policies would help his company. Jay Allen is a fan of President Donald Trump, and voted for him on the belief that the Republican would cut taxes and trim regulations, helping his manufacturing business in northeast Arkansas.But the tariffs at the core of Trump’s economic agenda have wreaked havoc on his company, Allen Engineering Corp., which makes industrial equipment used to install, finish and pave concrete. The import taxes have raised the costs of engines, steel, gearboxes and clutches made abroad that Allen needs to build power trowels that can sell for up to $100,000 each.Allen’s experience embodies a growing body of evidence that the tariffs that Trump said would help American factories are, in fact, squashing many of them. The problem could get worse as the administration scrambles to craft new tariffs to replace the emergency import taxes that the Supreme Court ruled illegal in February.Allen said he ran his company at a loss in 2025 because of tariffs. His payroll has fallen to 140 workers from a peak of 205. To get by this year, he has hiked prices by 8% to 10%, even though that might mean fewer sales.“What’s really sad is the unintended consequences of his tariffs are hurting manufacturing in our country,” said Allen. “Unfortunately, the working-class people are getting squeezed.”