'Buy American' Knife Maker Gets Harsh Reality Check On Trump's Tariffs
Josh Smith has seen the rapid growth of his knife business since he started it during the pandemic. Appearances on Fox News and Joe Rogan, among many others, had him well-positioned to sell a quality product with an ever-expanding market. Then Trump got into office and it all went pear-shaped.
Source: Associated Press
Josh Smith, founder and president of Montana Knife Co., called himself a Trump voter but said he sees the tariffs on foreign steel and other goods as threatening his business.
For instance, Smith just ordered a $515,000 machine from Germany that grinds his knife blades to a sharp edge. Trump had imposed a 10% tax on products from the EU that is set to rise to 15% under the trade framework he announced Sunday. So Trump’s tax on the machine comes to $77,250 — about enough for Smith to hire an entry-level worker.
Smith would happily buy the bevel-grinding machines from an American supplier. But there aren’t any. “There’s only two companies in the world that make them, and they’re both in Germany,” Smith said.
Then there’s imported steel, which Trump is taxing at 50%. Until this year, Montana Knife bought the powdered steel it needs from Crucible Industries in Syracuse, New York. But Crucible declared bankruptcy last December, and its assets were purchased by a Swedish firm, Erasteel, which moved production to Sweden.