Exploring the reshoring myth, and why bringing manufacturing back isn’t a simple fix

ARCA News Desk

| May 21, 2025
Credit: Outlever
TL;DR
  • Until recently, the de minimis rule has allowed tariff-free imports that undercut American manufacturers.

  • Craig Roozen and Phil Ernst of Choice Manufactured Parts discuss the impact of low-quality, counterfeit products from foreign sellers on platforms like Amazon.

  • They argue for policy reforms to support domestic manufacturers against unfair international competition.

To think that we’re going to go back to carrying a steel lunchbox with steel-toed shoes and manufacture things—it’s just not going to happen.

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Craig Roozen
President
Choice Manufactured Parts

It’s more than good ol’ fashioned competition—American manufacturers are being suffocated. Between trade loopholes like the de minimis rule and the hard math of domestic production, companies face a stacked deck.

Craig Roozen, President, and Phil Ernst, Chief Business Officer at Choice Manufactured Parts, see the fallout up close. From lopsided trade rules to the gritty realities of modern production, they’re watching American businesses get boxed in—and calling for real policy change to level the field.

The real cost of ‘progress’: “The American people are being sold a bill of goods about this exodus of manufacturing,” says Roozen. “The country has changed. Jobs have changed. The type of work we do has changed. To think that we’re going to go back to carrying a steel lunchbox with steel-toed shoes and manufacture things—it’s just not going to happen.” It’s a blunt pushback against nostalgic takes that ignore the realities of today’s economy.

Uneven playing field: “You have 4 million packages a day coming into the U.S. under the de minimis rule,” says Ernst. “Ninety-two percent of shipments are using it—they’re shipping in containers and dividing them into sub-$800 packages.” The result? A flood of tariff-free imports that undercut U.S. companies. “Frankly, we should be hiring,” he adds, “but instead we’re paying tariffs and trying to compete on an uneven playing field.”

A race to the bottom: Ernst says many new sellers on platforms like Amazon are Chinese companies pushing low-quality products—some falsely labeled to appear legitimate. “The amount of counterfeit stuff flowing into the U.S. through Amazon, TEMU, and places like that is dangerous and hurtful to the U.S. economy,” he warns. While Choice offers premium aftermarket parts, they’re forced to compete not just against de minimis—but against products that don’t last. “We have to compete against inferior products too,” he says.

The amount of counterfeit stuff flowing into the U.S. through Amazon, TEMU, and places like that is dangerous and hurtful to the U.S. economy. We have to compete against inferior products too.

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Phil Ernst
Chief Business Officer
Choice Manufactured Parts

Pants on fire: Roozen points to companies like Amazon and Walmart as major winners under the de minimis rule—able to import cheap goods at scale while U.S. businesses face higher costs and stricter standards. “These are the companies that are winning from this policy,” he says. “It’s not normal American businesses.” While the lower prices are often framed as a win for consumers, Roozen pushes back: “You can’t tell me it’s a cost advantage when these companies are cheating. You can’t have it both ways.”

The reshoring myth: Roozen pushes back on the idea that bringing manufacturing back is a simple fix. “Even if I bring the raw materials in here and do final assembly, I’m still paying tariffs—and I’m paying higher labor costs,” he says. A domestic solenoid costs $3.50; an imported one, $1.20—even with tariffs. “And if I do all this effort and bring it all in here, and three and a half years from now this all goes out the door, then where do I stand?”

Automation, not just offshoring: “Something like four out of five manufacturing job losses are due to automation,” Roozen says—not just offshoring. But automating isn’t cheap. “Unless you have a lot of money to invest in robotics, you’re not going to. The labor content’s going to eat you alive.” Meanwhile, trade policy uncertainty keeps businesses cautious.

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