Tariffs and the harbor town

Local costs of Trump trade tactics

Posted 4/17/19

Look no farther than the re-launch of schooner Adventuress if you want to find collateral damage in the trade war President Trump declared by hitting thousands of Chinese and other goods with new tariffs.

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Tariffs and the harbor town

Local costs of Trump trade tactics

Posted

Look no farther than the re-launch of schooner Adventuress if you want to find collateral damage in the trade war President Trump declared by hitting thousands of Chinese and other goods with new tariffs.

When trade partners retaliated, the boatwrights’ lumber supplier saw a 20% price hike for replacement wood components installed in the restoration of the historic 133-foot schooner, said Jim “Kiwi” Ferris, founder of Edensaw Woods.

The U.S. salvo aims to punish trading partners the President says have taken advantage of free trade policies.

Ferris, Washington’s 2016 Small Business Person of the Year, said Trump’s goal is understandable, but small operators are caught in its effort to punish multinational companies. “They’re not after us, but we fall in the same bucket,” he said Friday as the Adventuress was being moved from Boat Haven to the harbor.

“I don’t think we need a fight,” Ferris said. As one of the early retailers to join the Forest Stewardship Council, Ferris said his concerns about Chinese lumber have more to do with conservation. “We need to make sure the stuff is legal. That’s more of an issue.”

Wooden boats, the industry that launched Edensaw, aren’t the only victim of the cross-fire. Ferris, who used to import from China about 20 shipping containers per year of cabinet-grade birch plywood, said a 208% tariff on that product has forced him to find new suppliers: Cambodia and Viet Nam.

Meanwhile, the domestic suppliers who were supposed to gain market share when protected by Trump’s tariffs have jacked up their prices, he said, knowing retailers like Edensaw were scrambling to supply their customers.

Haven Boatworks Lead Shipwright Blaise Holly is frustrated by tariffs, but the ones affecting his business predate the current trade war.

According to Holly, tariffs on softwoods are the most “onerous” to his business, but those have been a recurring headache for years.

“Softwood is probably our single most expensive commodity,” Holly said, “.. and we get a lot of ours from Canada. Those tariffs have been an issue for as long as I’ve worked in boatyards.”

Aside from that, Holly acknowledged that fitting prices have gone up since base metal prices have increased.

On the other hand, Port Townsend Foundry founder Peter Langley believes that the current national tariffs have actually improved his business.

“We already get most of our bronze from a company in Ohio,” Langley said. “The more we can recycle and stay domestic, the less expensive our raw materials are, and the more people we can put to work in this country, making products whose materials are 100% domestic, and whose labor is as well.”

Langley conceded that his perspective likely differs from other business owners because “the majority of Washington is still an import state,” even though he contends that Washington remains as much a manufacturing state as ever.

In the other Washington, the Olympic Peninsula’s congressman says he is monitoring trade war impacts on his trade-dependent state. Before he was elected to Congress, Democratic Rep. Derek Kilmer worked as a management consultant for McKinsey & Co. business analysts and in public-sector economic development, experience that shapes his view.

“I’ve met with employers all over our region that are facing higher costs for some of their supplies,” Kilmer wrote in response to the Leader’s questions about his views on the trade war. He said the nation’s northwestern-most congressional district is also hurt when overseas competitors who aren’t party to the trade war can undercut Peninsula companies seeking to do business with China.

“I’m concerned that the Administration’s approach on trade is putting the Washington state economy and local jobs at risk,” Kilmer said. “While there are certainly legitimate concerns about nations who aren’t playing by the rules, implementing new tariffs and creating an escalating trade war is not the best path forward .”

Kilmer took the opportunity coin a quip, saying he’ll work for policies that help Washington State “export Washington products - not Washington jobs.”