Survey conducted by Polaris MEP, Rhode Island Commerce and the Rhode Island Manufacturers Association captures scope of impact from federal tariff changes on Ocean State manufacturing

Of the nearly 100 Rhode Island manufacturers who responded to a recent survey by Polaris MEP, Rhode Island Manufacturers Association (RIMA) and the Rhode Island Commerce Corporation, 78.3% reported they either have or plan to adjust prices as a result of federal changes to tariffs.

“President Trump set U.S. tariffs at their highest rate since the 1930s, and, as this snapshot shows, his tariff taxes create a lot of new costs, uncertainty, and instability that negatively impacts businesses and consumers alike. Experts are warning that these impacts will become worse the longer the Administration insists on tariffs, rather than bringing down costs for manufacturers and consumers,” said U.S. Senator Jack Reed.

The survey, conducted from May 20 to June 27, 2025, gathered input from local manufacturers related to the impact of import duty and tariff changes announced this year. 81% of respondents categorized the impact as either “somewhat negative” or “significantly negative” in at least two areas of business.

Matt Watson, Center Director of Polaris MEP and 401 Tech Bridge said the partners were not surprised by the results. “We had a lot of anecdotal evidence that Rhode Island manufacturers were beginning to suffer or anticipating hardship, and this survey captured the data which proves the scale is significant.”

Secretary of Commerce Liz Tanner concurred: “These findings confirm what we’ve been hearing from manufacturers across the state—federal tariff changes are having a real impact on their operations.”

Key findings include:

• 86% of ALL respondents said tariff changes and uncertainty have negatively impacted their Cost of Goods Sold (COGS).
• 62% of ALL respondents reported negative impacts to their investment plans.
• 76% of ALL respondents reported a negative impact on their bottom line.
• Manufacturers outside the defense supply chain were substantially more likely to report negative impact on their ability to fulfill contracts on time compared to defense manufacturers (57.7% vs 42.5%). Non-defense companies also reported higher percentages of imported components or raw materials.
• 93% of food manufacturers, medtech, and life sciences manufacturers who participated reported negative impacts to their bottom line, while 64% of fabricated metal manufacturers reported the same.

“President Trump’s tariff policy is sowing chaos for manufacturers and threatening the livelihoods of small business owners. In Rhode Island, manufacturers are hesitant about whether to invest or reroute supply chains, and small businesses are being forced to pass on higher costs to stay afloat,” said U.S. Senator Sheldon Whitehouse. “It’s time we put an end to Trump’s tariff rollercoaster and give our local manufacturers the stability they need to continue growing and creating jobs.”

Along with quantitative data, the survey asked manufacturers to share what they’re experiencing in their own words. RIMA Executive Director Dave Chenevert said that many of these narratives were painful to read.

“The qualitative responses provided important context to the data,” said Dave Chenevert, Executive Director of the Rhode Island Manufacturers Association. “Many manufacturers detailed how tariff changes are disrupting procurement strategies, straining cash flow, and forcing delays in capital investments. Behind every percentage point is a business owner struggling to keep their doors open, to avoid layoffs, or to manage skyrocketing costs. These narratives underscore the operational challenges our members are navigating in real time.”

Manufacturers shared stories such as:

• “Sales have slowed by 60% [because] of economic uncertainty. I'm trying to avoid layoffs. I prepurchased a number of components [because] vendors told me prices would rise so that was a big outlay of cash.”
• “Our raw glass has gone up 10% across the board even before the tariffs went into effect.”
• “[A popular collection] is being made in Indonesia and therefore dramatically impacted by the increase in tariffs (from 11% to 43%). The lack of actual policy from the administration has made it impossible to make meaningful business decisions. Inventory planning, capital investments, and hiring are all on hold. I am hearing this from nearly all of my manufacturing partners in RI and across the country.”

Similarly, U.S. Representative Gabe Amo said, "Trump's tariffs are hurting Rhode Island manufacturers and workers. His policies are driving up prices and hurting our state’s economy. Companies cannot succeed if they cannot plan and Trump's unstable tariff policies are making it impossible for businesses to make forward-looking decisions. This survey reinforces what Rhode Islanders are telling me — they want commonsense policies that lower prices, protect innovative manufacturing, and support good-paying jobs in our state."

Watson said the survey was intended to gather data needed to develop resources that “can help our manufacturers adapt and thrive.”

Polaris MEP, Rhode Island Commerce Corporation, and RIMA are now working with policy makers, technical services providers and elected officials to develop programs that respond to the biggest areas of negative impact identified through the survey.

“We’re committed to working with our partners to support Rhode Island businesses through these challenges,” said Secretary of Commerce Tanner.

A full report with aggregated results is available at www.PolarisMEP.org/tariff-response.

About Polaris MEP

Polaris MEP provides competitive business improvement programs to grow Rhode Island’s manufacturing industry and strengthen the regional economy. Polaris MEP is a nonprofit organization and an affiliate of the National Institute of Standards and Technology’s Hollings Manufacturing Extension Partnership (NIST MEP). www.PolarisMEP.org

About the Rhode Island Manufacturers Association

The mission of the Rhode Island Manufacturers Association (RIMA) is to be the unified voice of the Ocean State’s manufacturers. RIMA advocates at the federal, state, and local levels for sensible policy solutions that strengthen manufacturing and serves as a bridge connecting members with the resources they need to compete and grow. www.RIManufacturers.com