The “USA Made” label faces challenges due to trade disputes and economic nationalism, impacting American manufacturers.
Trim-Tex CFO Matt Totsch highlights the strain from volatile tax laws and unpredictable trade shifts on U.S. businesses.
Despite market slowdowns, Trim-Tex is reinvesting in its business, avoiding layoffs, and focusing on cost management.
Our box proudly displays ‘100% USA made.’ We’re concerned about that now.
Once a badge of honor for American manufacturers, the “Made in USA” label is now under siege. Undermined by trade disputes, shaky domestic policy, and economic nationalism abroad, even the most committed manufacturers are questioning how long they can hold the line.
Matt Totsch, CFO at Trim-Tex, is experiencing the strain in real time. As a leader at one of America’s long-standing vinyl drywall manufacturers, he’s watching volatile tax laws, unpredictable trade shifts, and a cooling economy pile pressure on businesses still committed to making things in the U.S.
Patriotism abroad, problems at home: “Our box proudly displays ‘100% USA made.’ We’re concerned about that now,” Totsch admits. That mark of pride is becoming a liability abroad, as a wave of economic nationalism takes hold in key export markets. “The Canadians are very patriotic. They’re pushing back on USA-made products and buying Canadian-made,” he explains.
Even Australia, long considered a reliable trade partner, is now complicated. “We have a trade surplus with them. That’s the perfect trade partner—and we’re hitting them with a retaliatory tariff? It’s mind-boggling,” Totsch says. “It just doesn’t make any sense.”
Innovation on ice: “Countries like China and Russia will actually copy our products. So there’s nothing standing in the way of China replacing us in markets like Australia,” Totsch warns. This kind of intellectual property theft doesn’t just chip away at sales, it undermines the very logic of investing in innovation. “That goes back to R&D too. If we’re developing technologies that are just going to get ripped off anyways, what’s the point?” he argues.
The problem is compounded at home. U.S. manufacturers were already dealt a blow when immediate expensing for R&D wages, a key incentive from the 2017 Tax Cuts and Jobs Act, was allowed to sunset. Without that support, and without global safeguards, developing new technologies becomes a high-risk gamble. “We’re a country founded on inventors,” Totsch says. “If you’re talking about being cutting edge in manufacturing, innovation needs to be at the top of the conversation. We’re just far behind other countries.”
We’re a country founded on inventors. If you’re talking about being cutting edge in manufacturing, innovation needs to be at the top of the conversation. We’re just far behind other countries.
Market blues: Beyond international pressures and policy hurdles, the market has shown clear signs of slowing since November 2024. Totsch has already lowered his 2025 sales forecast by 10%. “We’re tied to the construction industry, which is very heavily capital-intensive. If people don’t have certainty, they’re not putting shovels in the ground,” he explains.
Cutting costs, not people: Despite the headwinds, Totsch isn’t backing down. “We’re plowing ahead; we believe in the future. We’re not pulling back, we’re going forward,” he says. That momentum is fueled by reinvesting every available dollar straight back into the business. “I’m happy to work for a company that chooses to reinvest,” he adds.
“We’re keeping our heads above water. We’re not cutting muscle, we’re not laying people off; we’re just watching expenses,” he says. But his concern stretches beyond his own walls. “I’m worried about the small businesses in this country. Some of those smaller businesses, if they don’t get some clarity soon or get some reprieve, they’re in for a world of hurt.”
