Drowning in uncertainty: Trade questions slow investment, squeeze profits across U.S.

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From a denim plant in rural Georgia to a St. Paul, Minneapolis loudspeaker maker...

Meanwhile, progress on talks to resolve the 17-month trade dispute with China remains illusive and a trade deal signed with Mexico and Canada is still awaiting ratification by the U.S. Congress.

JLab, which builds 100% of its products in China, is now investing more in expanding its sales and marketing operations in Europe than in the United States because the climate there is more stable. “It’s all speculative. You really can’t invest in your future,” he said. He had paid over $350,000 in tariffs on five recent Italian cheese shipments, money that he cannot easily recoup.

“It’s probably set us back by two years,” said Digre, who has retained U.S. production long after other rivals moved to Asia. The new line was expected to boost sales and generate 20 more jobs at the plant. Digre, whose father started the company 70 years ago after serving in World War Two as a B-17 gunner, has tried to stave off any job cuts. “That’s the last resort, so you cut in other areas, like innovation and R&D.”On the East Coast, Jeff Greenstein, president of Boston-based Delta Cycle, a privately owned maker of bike racks, padded seats and other accessories, said he has cut his marketing budget by a quarter.

The tariff increases have cascaded through the 35-year-old business, forcing time-consuming and complex changes to the pricing schedule and negotiations with customers and suppliers about how to split the extra costs.

 

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Or an opportunity for those who can afford it

Sure Reuters we are in a deep depression. HAHAHAHAHA!

What? All those corporate tax cuts didn't spur investment? Who could have predicted that?

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