Barry Barr has taken a number of cost-saving measures in recent months to keep his outdoor apparel company afloat during President Trump’s destabilizing trade war.
He froze his spending on marketing and even prohibited his employees from traveling to see customers.
But while he waited for Mr. Trump’s tariffs to come into better focus, he resisted making more consequential decisions at his company, KAVU True Outdoor Wear. He didn’t raise prices on its fall lineup. He continued manufacturing bags, woven shirts, polar fleeces and other items at factories in China, India and Vietnam, even though Mr. Trump had signaled that those countries would face stiff duties.
“It’s a sit and wait, honestly,” he said last month. “We just don’t know.”
This week, Mr. Barr was trying to wrap his head around the punishing new tariffs that were set to click on shortly after midnight on Thursday. It was hard for him to know whether the slate of duties on about 90 countries would ultimately hold given the ever-evolving nature of Mr. Trump’s trade policy.
On Wednesday, Mr. Trump signed an executive order that would double tariffs on India, to 50 percent, beginning this month in an effort to stop the country from buying Russian oil. He also threatened to impose a 100 percent tariff on foreign semiconductors.
The latest tariff orders confirmed for Mr. Barr that he would have to raise prices and lay off employees in the months ahead.
Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.
Thank you for your patience while we verify access.
Already a subscriber? Log in.
Want all of The Times? Subscribe.
The post Layoffs? Price Increases? Companies Make Hard Choices as Trump’s Tariffs Set In. appeared first on New York Times.
