Power Tools and Tariffs: What Are Manufacturers Saying?

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There’s a lot of uncertainty in the global economy right now, and tariffs have a significant role in it. With so many components and products being made overseas, some of the tariffs may affect power tool prices, along with other products we use daily, like PPE. I reached out to several manufacturers to see if they could offer some insight into what we can expect over the coming months.

Official Tariff Statements

If you’re paying attention to the news, you know that tariffs have been changing quickly. Striking a new deal can change expectations overnight. In other words, this is a highly fluid situation that’s in a state of flux until more permanent trade deals can be signed.

That fluidity shows in what we heard back as well as in the number of brands that declined to give an official statement.

Milwaukee Tool

From Milwaukee Tool:

“Milwaukee Tool continues to monitor this evolving situation closely. As always, our priority remains delivering best-in-class solutions to our users without compromising quality or performance.”

Makita

Makita provided more detail:.

What should Makita customers expect regarding pricing and availability over the next few months?

The newly enacted trade policies and tariffs are continuing to evolve, so it’s too early to know exactly what to expect. But eventually these developments will have an effect on our business, despite substantial investments we’ve made over the past several years in expanding Makita’s network of manufacturing facilities around the world.

We also know that despite the uncertainty, Makita will remain firm in our commitment to innovation, world-class quality and precision-engineered solutions. Our focus remains on enhancing user productivity and strengthening the valued partnerships we share with our dealer network.

– Wayne Hart, Senior Communications Manager, Makita U.S.A., Inc.

Is there anything else you’d like your customers to know about how you’re responding to tariffs in the short or long term?

“Makita users and dealer partners can be assured that Makita will continue to invest in the industry’s best tools, equipment and accessories. Makita’s commitment to premium quality, legendary durability and premium engineering is steadfast. Our commitment remains unchanged: To improve users’ productivity and efficiency with best-in-class solutions.”

– Wayne Hart, Senior Communications Manager, Makita U.S.A., Inc.

Keen

Keen Utility sent a press release stating that they would be keeping their pricing stable through the end of the calendar year.

““We believe it’s our responsibility to support our retail partners and fans through this period of uncertainty. By holding our prices steady, we aim to help you maintain strong consumer relationships and continue delivering the value and quality people expect from KEEN. We recognize this is not a simple or easy choice in today’s climate — but it’s the right one.”

– Founder and CEO of KEEN, Rory Fuerst

Other Sources

Stanley Black & Decker

According to information we first saw from Construction Dive, Stanley Black & Decker (including brands DeWalt, Craftsman, Proto, and others) has raised prices and is making adjustments to its supply chain to reduce its dependence on manufacturing in China.

“Over the next one to two years, Stanley Black & Decker reported that it will accelerate supply chain adjustments by leveraging its North American footprint, notably Mexico, while reducing tariff costs in China. The company has worked to move the U.S. cost of goods sold out of China for years.”

– Nathan Owens, Construction Dive

Home Depot

After we initially posted this article and in the wake of Walmart announcing price increases, new information came from CNBC regarding Home Depot’s pricing plans.

“Because of our scale, the great partnerships we have with our suppliers and productivity that we continue to drive in our business, we intend to generally maintain our current pricing levels across our portfolio.”

– Richard McPhail, Home Depot Chief Financial Officer

Analysis

First of all, let’s give some grace for the lack of more specific information. Manufacturers are having to make high-level, long-term decisions about how they’re going to do business in an environment that has sometimes daily changes. Those aren’t decisions you make overnight, and many of them can’t be solidified until the economic climate is more stable.

As far as what we have been told and what we’ve been able to learn from other sources, there is a common theme. Manufacturers have set the wheels in motion to create supply and manufacturing chains that put them in a more favorable position when it comes to the expense of tariffs. Much of that involves shifting away from China at the very least, and into the US where they will create more American jobs at best.

Keep in mind that publicly traded companies have a legal responsibility to do what’s in the best interest of their stockholders. While that means they need to be profitable with an eye on long-term growth, it also means they have to continue producing quality products at prices we’re willing to pay. After all, there’s no profit if there are no sales.

So, while things seem uncertain today, it’s temporary and many people are working hard behind the scenes to minimize the impact on our bottom lines while ensuring the health of their businesses. Let’s raise a glass to them in gratitude and offer a prayer for them as they bear the burden of making these tough decisions.

And as we wait for whatever the new normal will be, let’s continue to work with diligence and integrity, ready with an encouraging word as we’re all feeling some level of anxiety, stress, and weariness.

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