KENT COUNTY, Mich. — President Trump announced modified tariffs Thursday night affecting dozens of U.S. trading partners. Some rates will be lower than those rolled out by the administration in April.
SEE MORE: Trump signs order imposing new tariffs on a number of trading partners that go into effect in 7 days
Countries not specifically listed will be subjected to a baseline 10-percent tariff. This new tariff order takes effect in seven days, replacing a previously set Friday deadline for tariffs.
For neighboring Mexico, the current 25-percent tariff rate will remain in place for the next 90 days while negotiations continue. Canada, on the other hand, will see its tariff rate rise from 25 percent to 35 percent starting Friday. Trump stated that the increase is due to Canada's failure to cooperate in stopping the flow of illicit drugs.
Tariffs play a significant role in the President's trade agenda, which he claims incentivizes manufacturing in the U.S. and addresses trade deficits. Meanwhile, China is facing a different deadline for tariff negotiations with the U.S., set for August 12. Ongoing talks between the two countries continue in this context.
The current tariffs are already impacting various sectors, including the sport of pickleball in West Michigan. Larry Lynch, owner of KiwiLabs Pickleball in Belmont, shared how the tariffs have affected his business. Lynch, who designs paddles using CAD software, manufactures them in China due to cost-effectiveness.
When the initial tariff hikes on imports from China skyrocketed in the spring, Lynch had no choice. He halted orders until the U.S. and China reduced reciprocal tariffs. Despite resuming manufacturing, Lynch still faces increased costs for importing products.
"To build them cost the same, essentially, but to get them in from where they land state side, it costs a lot more now," he explained.
With the looming August 12 trade talk deadline between the U.S. and China, Lynch is considering transitioning to U.S. manufacturing as a contingency plan. "If my paddles were fully made here, that would be my dream," he noted. However, such a shift would mean charging double his current prices, making it difficult to compete with larger brands.
He said, "At that point, I can't compete with all the big names, and I just don't think I'd survive."
KiwiLabs is located in one of the largest pickleball communities in the country, which ranks third overall in the U.S., according to Lynch. He's making investments right now, in case trade talks go south. "I just finished doing the largest order I could afford to do. It's being shipped to me right now and then it's wait and see."
