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Adam Goldstein is anxious about the effect planned tariffs might have on his company, but it’s the uncertainty of the situation—including when the tariffs will be implemented and what industries will be affected—that’s giving him the most trouble.
Goldstein’s Anderson-based company, StagUSA Services Inc., manufactures aftermarket products for vehicles ranging from pickup trucks to midsize fleet vehicles that allow them to run on alternative fuels like compressed natural gas and propane.
The company imports propane tanks from Mexico and other components from Poland.
Already, President Trump’s threat of tariffs on Mexican products might be costing Goldstein.
He gave a customer a $60,000 quote for 60 propane tanks just before Trump announced a 25% tariff on Mexican goods on Feb. 1. That tariff would increase the StagUSA’s cost by $15,000.
While tariffs on Mexican and Canadian products are on hold until at least March 1, Goldstein remains concerned about whether the tanks will clear U.S. Customs and Border Protection before price hikes set in, something he’d have to pay at the time of import.
“Here’s the thing: If I hadn’t quoted that—if that was just for stock—I would be pushing those prices out to whoever was going to buy [the tanks] from me,” he told IBJ. “It wouldn’t have been my problem, and it wouldn’t be the Mexican producer’s problem, either. It was going to be the consumer’s problem. But I had already quoted the price to my customer, and I have an ethical responsibility to honor my prices.”
From automakers to barn builders, businesses brace for impact
Goldstein said he believes that if tariffs are implemented selectively, they can be a “laser” that bolsters the U.S. economy by encouraging more domestic production and purchases. But for his business, no companies in the United States can meet his needs.
He’s also continuing to monitor whether the European Union will face tariffs and what that could mean for the components he imports from Poland. Likewise, he’s beginning to have conversations with other suppliers and subcontractors about where they source their own materials, such as steel, and has contacted state and federal representatives on the matter.
He said that if the tariffs ultimately go into effect, he expects many customers will need to evaluate whether the increased price they’d pay for converting their vehicles to natural gas or propane can be recouped through savings on fuel costs—something he’s not sure will be possible.
“There are going to be customers who certainly understand that I’m not throwing out a 25% price increase at them because I bought a new boat—they would know why the price increased,” Goldstein said. “But there are going to be some customers who are just going to decide it’s just too much money. So, I’m going to need to rethink my annual budget. Maybe I won’t buy as many of these [materials] as I thought I was.”•
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