U.S. manufacturers see surge in orders as tariffs reshape supply chains

By lauraharris // 2025-05-11

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President Donald Trump's tariffs on imports (especially from China) are driving small and midsize U.S. manufacturers to expand production, with companies like Jergens Inc. and Grand River Rubber reporting surging demand as businesses shift supply chains domestically.
Former customers of Chinese suppliers are returning to U.S. manufacturers (e.g., rubber gaskets, PPE), with some firms projecting significant revenue growth. SafeSource Direct revived glove production due to tariff-driven price hikes on Chinese imports.
Chinese factories face severe slowdowns – 80 to 90 percent in key regions – due to U.S. tariffs (up to 145 percent) and COVID lockdowns. Major sectors (semiconductors, electronics, autos) are disrupted, with Apple and Korean automakers halting production over supply chain gaps.
Factories in Guangdong, Zhejiang and Fujian are cutting shifts, furloughing workers, or shutting down. Cities like Shenzhen (400 million under lockdown) exacerbate delays, forcing some firms to dismiss employees or operate minimally.
The trends align with Trump's "Make America Great Again" agenda, emphasizing deregulation, tax cuts and tariffs to revive U.S. manufacturing.

A wave of new tariffs imposed by the administration of President Donald Trump is reshaping U.S. manufacturing, with small and midsize companies reporting a surge in orders as businesses scramble to avoid import levies. While the policy has disrupted global trade and drawn criticism from Wall Street, some domestic manufacturers say they are finally seeing a competitive edge against foreign rivals, particularly China. Jack Schron, the president of Jergens Inc., a manufacturer of industrial tools in Ohio and Illinois, said his factories are running around the clock to meet demand. "We are swamped. We are running 24 hours a day, seven days a week," Schron said, attributing the boom to both tariff-driven re-shoring and increased defense contracts. Similar stories are emerging across the industrial Midwest. Donny Chaplin, the president of Grand River Rubber and Plastics in Ohio, said two former customers who had switched to Chinese suppliers have returned, seeking U.S.-made rubber gaskets. Three oil filter manufacturers also reached out, with two already placing orders. If all the new business materializes, Chaplin estimates an additional $5 million in annual revenue, about 10 percent of the current sales of the company. The tariffs have been especially critical for U.S. manufacturers of personal protective equipment (PPE), which struggled after hospitals returned to cheaper Chinese suppliers post-pandemic. SafeSource Direct, a Louisiana-based glove maker, has restarted two production lines due to renewed demand. "The folks relying on China are scrambling," said Alan Rust, SafeSource's chief growth officer. New tariffs on Chinese rubber gloves have doubled their price, making U.S. alternatives more attractive. Still, rising costs for imported raw materials – like nitrile rubber from Brazil and Italy – remain a challenge.

U.S. manufacturing gains momentum as Chinese production falters

The revival of U.S. manufacturing is gaining momentum as China's industrial output falters. Factories across China are scaling back operations, sending workers home and halting production lines as a combination of U.S. tariffs and sweeping COVID-19 lockdowns disrupt global supply chains. The slowdown, affecting an estimated 80 to 90 percent of factories in key industrial regions, has sent shockwaves through industries from semiconductors to consumer electronics, with major companies like Apple and Korean automakers already feeling the impact. (Related: Warren Buffett: Trump tariffs risk global economic "act of war.") In provinces such as Guangdong, Zhejiang and Fujian – the heart of China's manufacturing sector – factories producing everything from plastic molds to electronics have slashed overtime, canceled shifts or shut down entirely. Export orders have plummeted, with U.S. tariffs as high as 145 percent on Chinese goods exacerbating the crisis. An anonymous worker at a plastics factory in Fujian said production stopped for a week after export orders vanished. A 26-year-old toy factory worker in Zhejiang confirmed his employer had granted a two-week leave. At DeHong Electrical Products in Dongguan, workers were given a month off on minimum wage after U.S. clients paused orders. Meanwhile, lockdowns have paralyzed major cities like Shenzhen, a global tech and manufacturing hub, where 400 million Chinese citizens, equivalent to the entire U.S. population, are now under quarantine. The semiconductor industry, already struggling with global shortages, faces further delays as key plants slow production. Apple has shuttered its iPhone factory in China, raising concerns over delays for its next-generation devices. Korean automakers have also halted production due to missing Chinese components. Some companies, like Stellarmed in Hangzhou – a supplier of endoscopy kits for the U.S. medical market – have told workers to seek new jobs, offering access to headhunting agencies. Recruiters in Guangdong report that while only the most U.S.-dependent factories are closing entirely, many others are cutting hours. Dongguan Yuanguan Technology, which once ran overtime shifts, now operates just a few hours a week. Some cities, including Shenzhen and Dongguan, have announced support packages to help manufacturers weather the storm. This shift aligns with Trump's "Make America Great Again" vision, which prioritizes bringing factories and high-paying jobs back to U.S. soil. Follow SupplyChainWarning.com for the latest updates on this topic and similar stories. Watch the clip below where Tom Philipson and Steve Moore explain how Trump uses tariffs effectively.

This video is from the NewsClips channel on Brighteon.com.

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U.S. manufacturing gains momentum as Chinese production falters

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