The world of music might seem glamorous, but even its creators aren't immune to the harsh realities of global economics. Julie Robbins and her team at EarthQuaker Devices, the company behind the sought-after guitar pedals used by music giants like The Smashing Pumpkins, Radiohead, and PJ Harvey, are facing a significant challenge: tariffs. Their popular Plumes model alone has sold over 67,000 units. These pedals, meticulously handcrafted in Akron, Ohio, utilize over 1,000 components, many imported from countries like China and Vietnam. But the Trump administration's tariff policies have cast a shadow over their business.
Robbins reveals that tariffs have increased their costs by up to 30%. "I would have at least a couple of new positions open now if it weren’t for the tariffs," she laments. While the company initially absorbed these costs, it's no longer financially sustainable. She believes these tariffs are not benefiting American manufacturing, as they were intended to do.
But here's where it gets controversial... The region, once a powerhouse of US industry, encompassing Cleveland, Youngstown, and Akron, is now grappling with the impact of tariffs intended to bring back manufacturing jobs. This area, which lost half its population in the late 20th century, is now seeing thousands of jobs disappear annually, at a rate higher than other Midwestern states. A recent report indicates that one in three manufacturing companies in northeast Ohio have been affected by tariff costs, with losses at 16%, nearly double any gains at 9%.
Jonathan Ernest, an economics professor at Case Western Reserve University, points out that producers in northeast Ohio often rely on inputs not readily available within the US, even with tariffs in place. Akron, a city that has lost 100,000 residents since the 1960s, is again facing economic decline and layoffs. In August, a major manufacturing employer announced the closure of two plants due to poor earnings. Across the region, manufacturers are downsizing, cutting jobs, and pausing operations due to economic uncertainty.
And this is the part most people miss... The tariffs' core goal is to bring manufacturing back to the US, but a report by the Manufacturing Advocacy and Growth Network (Magnet) found that only 9% have brought back more production from overseas this year. Furthermore, efforts to innovate in northeastern Ohio have been scaled back due to the economic uncertainty created by tariffs.
Some companies are exploring workarounds like foreign trade zones, which defer duty payments on imported products. David Gutheil, COO at the port of Cleveland, notes a 15-20% drop in cargo this year, attributed to tariffs. However, not all companies are struggling, and some remain hopeful. The Magnet report shows that two-thirds of manufacturers surveyed anticipate business growth in 2026.
For small businesses, the tariffs are particularly damaging. The staff at EarthQuaker Devices are now spending time on financial forecasts and adjusting product prices. Robbins highlights the lack of support for small businesses, even mentioning the impact of Project 2025. A $50,000 grant the company received is now being recalled due to economic forces partly caused by tariffs.
"The only reason we do this is to have jobs," Robbins says. "It’s not cheaper or easier than doing anything else... We don’t want to make anything else; we have dedicated our lives to perfecting this craft."
What are your thoughts? Do you believe these tariffs are ultimately helping or hurting American manufacturing? Share your perspective in the comments below!
