Two local businesses are grateful their products are sourced and made in the United States, as the uncertainty around President Donald Trump’s tariffs creates apprehension across the economy.
Tariffs are a tax on goods and materials imported from other countries. American businesses that purchase items overseas must pay the additional tax, which is often passed on to consumers. Trump ran for office on a platform of imposing tariffs to bring manufacturing jobs back to the country.
“We’re fortunate we’re made in the USA,” said Denis Gagnon Jr., CEO of Belt Technologies, an Agawam-based company that makes metal belts and conveyor systems. “We’re predominantly a stainless-steel product. The vast majority of our steel comes from inside the country.”
Nearly all the components of the products made by Belt Technologies are also sourced from inside the United States, except for “a couple of specialized attachments,” he said.
Gagnon’s father, Denis Gagnon Sr., is the president of Excel Dryer, creator of the XLERATOR Hand Dryer. Like his son, Denis Gagnon Sr. is not concerned about the economic impact of tariffs.
“We’re not reacting to the current threat of tariffs,” Denis Gagnon Sr. said. Excel Dryer, in East Longmeadow, is the creator of the XLERATOR Hand Dryer, which he proudly called “the best hand dryer in the world.” The hand dryer’s motor was the only major component of the dryers that was produced overseas, in Hong Kong. Recently, however, the part manufacturer began producing it in Virgina, leading the Xlerator to be full made in the United States. “We can avoid having them raise prices because we don’t have anything coming from overseas,” Denis Gagnon Sr. said.
Denis Gagnon Sr. explained that products must be made with 75% or more domestic content to be certified as “Made in America.” Denis Gagnon Jr. added, “We’re both proudly ‘Made in America.’”
Trump imposed tariffs, ranging from 10% for many countries to 145% on Chinese imports, only to implement a 90-day pause on most of them days later. Amid the uncertainty, there has been talk about a trade war, with countries retaliating against American tariffs by imposing their own on American goods.
When it comes to the impact of reciprocal tariffs on sales, Denis Gagnon Sr. said, “There’s certainly a risk of that. We export about 20% of our products.” He said there are existing challenges to exporting Excel Dryer’s products to countries with tariffs on American products, like Brazil. The American Chamber of Commerce for Brazil reported in February that the weighted average tariff on U.S. exports to Brazil is 2.7%. Since then, the United States implemented a 10% tariff on imports from Brazil.
Belt Technologies sells about half of its products to international customers. “We haven’t seen any [reciprocal tariffs], except selling to China, which is a small part of our business.” Denis Gagnon Jr. is not about losing market share in other countries if reciprocal tariffs are imposed.
“Our industry is very small and niche. Our closest competitor is in Japan. [Reciprocal tariffs] would make, perhaps, a minor impact,” said Denis Gagnon Sr. He added that he was taking a long view of the issue. “Trump is going to negotiate, you know, ‘You lower that, and I’ll lower this.’ Philosophically, I’m not a fan of tariffs, but if it’s short-term pain for long-term gain, I support what Trump is doing.”
