PROVIDENCE – Nearly 80% of Rhode Island manufacturers expect to adjust their prices in response to Trump administration tariffs, with nearly as many or more reporting negative impacts to their bottom lines and costs of goods sold.
A recent survey by Polaris MEP found that 78.3% of almost 100 Rhode Island manufacturers "either have or plan to adjust prices as a result of federal changes to tariffs," enacted by President Donald Trump beginning earlier this year.
The results, which indicate a range of financial, planning and staffing anxieties, didn't come as a surprise to Polaris MEP, a nonprofit focused on supporting manufacturers in Rhode Island.
“We had a lot of anecdotal evidence that Rhode Island manufacturers were beginning to suffer or anticipating hardship, and this survey captured the data which proves the scale is significant," said Matt Watson, center director of Polaris MEP and 401 Tech Bridge.
In April, Trump announced a 10% tariff on all goods imported into the U.S., with even higher duty hikes on some countries, including China, Mexico, Canada and European Union members. The tariffs also target goods such as steel, aluminum and automobiles. These increases have set off global "tariff wars," with some countries levying retaliatory tariffs on the U.S., and an uncertain, shifting economic landscape.
In addition to higher prices, these policies also have Rhode Island manufacturers bracing for reduced availability of the intermediate goods, such as steel, that they need to produce their own products.
Amid the state's broader manufacturing sector, military contractors anticipate fewer negative effects on their ability to fulfill contracts on time, with 42.5% expecting impacts.
Meanwhile, 57.7% of respondents in all other sectors anticipate increased difficulty fulfilling their contracts on time. Non-military contractors also reported a heavier reliance on imported components or raw materials.
Those in the life sciences, medtech and food manufacturing sectors are bracing for the worst tariff-related outcomes, according to the survey, with 93% of these companies citing a negative impact to their bottom lines.
Among the survey's key finding, Polaris MEP also highlighted that 86% of all manufacturers surveyed anticipate negative impacts on costs of goods sold; 62% reported negative impacts to their investment plans and 76% reported negative impacts to their bottom line.
In anonymously-shared comments, respondents reported concerns such as sales slowing by 60%; attempts to avoid layoffs; and "lack of actual policy from the administration [making it] impossible to make meaningful business decisions."
In statements attached to the survey, members of Rhode Island's Congressional delegation condemned the tariff increases and their impact on the state's economy and manufacturing sector.
“This survey confirms that the Trump administration's tariffs are hurting Rhode Island manufacturers and the people they employ,” said U.S. Rep. Seth Magaziner. “We need predictable trade policies that lower costs and support industry, not the chaotic approach we have seen in recent months that is only making life harder for working people and local businesses.”
Dave Chenevert, executive director of the R.I. Manufacturers Association, also warned of a dire business landscape for the state's manufacturers.
"Behind every percentage point is a business owner struggling to keep their doors open, to avoid layoffs or to manage skyrocketing costs," Chenevert said. "These narratives underscore the operational challenges our members are navigating in real time."
Jacquelyn Voghel is a PBN staff writer. You may reach her at Voghel@PBN.com.
