News Summary
A recent survey reveals that nearly 80% of manufacturers in Rhode Island anticipate raising prices due to tariffs from the Trump administration. Many companies, particularly in residential construction, are struggling with increased costs of essential materials like asphalt and wood, which directly affect their bottom lines. The responses indicate a trend of financial strain as businesses adopt strategies like tariff engineering to navigate these challenges. The uncertainty surrounding tariff exemptions is also influencing the construction sector, raising concerns about potential shortages and pricing fluctuations.
Providence, Rhode Island – Nearly 80% of Rhode Island manufacturers anticipate making price adjustments due to the tariffs imposed during the Trump administration, according to a recent survey. The responses from nearly 100 manufacturers in the state indicate that 78.3% have already implemented or are planning to implement price changes as a direct result of tariffs.
A significant number of manufacturers reported experiencing negative impacts on their bottom lines and the costs of goods sold. Many companies expressed concerns regarding their ability to absorb the increased costs of materials caused by these tariffs. In the residential construction sector, for example, manufacturers are bracing for higher expenses linked to tariffs on essential materials like asphalt and wood, both of which are integral to construction projects.
The survey highlights a growing trend in Rhode Island’s manufacturing sector, which has seen varied financial outcomes since Trump took office. Over the past few months, stock prices for publicly traded companies in the state have shown mixed results following the announcement of tariffs in April.
As of June 26, 2025, detailed stock performance indicates a combination of growth and decline amongst different companies:
- CVS Health: $68.14 (up 16.8% from $58.36)
- Textron: $80.26 (down 7% from $86.34)
- Hasbro: $72.31 (up 24.3% from $58.16)
- Citizens Bank: $44.12 (up 27.4% from $34.63)
- Washington Trust: $28.17 (up 6.3% from $26.51)
- United Natural Foods: $21.48 (up 66.5% from $12.90)
- Bally’s: $9.96 (down 54.87% from $22.07)
- AstroNova: $9.28 (down 38.75% from $15.15)
As companies navigate the tariffs, many are resorting to tariff engineering—a strategy employed by global manufacturers to circumvent import taxes by altering product classifications. This may involve minor modifications to products, allowing companies to adjust their tariff categories and consequently lower import costs. However, reliance on tariff engineering can divert focus from product development and innovation.
Manufacturers are finding that tariff exemptions can be inconsistent and politically influenced, resulting in varying impacts depending on the administration in power. This uncertainty extends into the wider construction industry as well. Commercial contractors underscore the unpredictability of how tariffs will affect both the cost and availability of construction materials.
For instance, TAMKO, a prominent asphalt shingle producer, is expected to raise prices in light of rising costs linked to tariffs. Additionally, since wood for construction is primarily sourced from Canada, the tariffs will significantly impact pricing and availability. Some decking material companies have indicated that they will remain unaffected by such tariffs, as they source all of their raw materials domestically.
Overall, a shift towards American-made products could lead to shortages and inflated prices as local manufacturers and consumers strive to adapt to the ongoing changes in the tariff landscape. The anticipated adjustments in pricing among Rhode Island manufacturers reflect broader trends that could resonate across various sectors of the economy.
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Additional Resources
- Providence Business News
- Boston Globe
- Scripps News
- WPRI
- GoLocalProv
- Wikipedia: Tariff
- Google Search: Impact of Tariffs on Manufacturing
- Google Scholar: Tariff Engineering
- Encyclopedia Britannica: Tariff
- Google News: Rhode Island Tariffs
