The 21 Hats Morning Report

The 21 Hats Morning Report

The Big Irony for a Small Manufacturer

Karla Trotman says that policies meant to strengthen American manufacturing are, in some cases, driving work overseas.

Loren Feldman's avatar
Loren Feldman
Jun 27, 2025
∙ Paid

Good Morning!

Here are today’s highlights:

  • A top Trump advisor says the Liberation Day tariffs could return.

  • Lou Mosca tells the nation’s mayors what business owners want from their local governments.

  • These are challenging times for the construction industry, but new crypto rules could make it easier to get a mortgage.

  • David C. Barnett explains why the business a seller sells is generally not the same business a buyer buys.

THE TRADE WARS

The tariffs were supposed to help domestic manufacturers like Karla Trotman’s Electro Soft: “When the latest tariff announcements hit, we saw something we hadn't anticipated: an immediate slowdown in customer orders. Not because demand disappeared, but because our clients hit the pause button to reassess their supply chain strategies. The uncertainty alone became a business disruptor. At Electro Soft, we've had to make difficult decisions. We've reduced schedules, tightened our belts on operational costs, and had tough conversations with our team about the road ahead. These aren't decisions any manufacturing leader wants to make, but they're necessary to keep our doors open and our workforce employed.”

  • “Here's what I'm seeing that doesn't make headlines: tariffs don't just affect the cost of imported components. They create a ripple effect that touches every aspect of manufacturing operations. Our customers face conflicting pressures. They want to ‘Buy American’ and support local manufacturing, but they also deal with cost pressures from consumers and shareholders. When component costs rise because of tariffs, everyone in the supply chain is forced to make tough choices.”

  • “Some of our OEM clients have asked us to explore alternative sourcing options, while others are considering moving production offshore entirely. The irony isn't lost on me – policies meant to strengthen American manufacturing are, in some cases, driving work overseas.”

  • “I'm not here to debate the politics of trade policy – that's above my pay grade. But I am here to share the real-world impact these decisions have on companies like ours and the communities we serve.” READ MORE

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