A “Made in USA” brand label once touted as a winner of the trade war has turned into a liability for many American businesses. Despite no reliance on tariffed materials, companies are taking a hit from reduced demand overseas.
Pepper Harward, CEO of footwear retailer Oka Brands, notes that Canada, South Korea, and Japan have become less receptive to American brands. “No one wants ‘Made in USA’ anymore,” he says. This sentiment is echoed by many small businesses facing an existential crisis over tariffs.
Even big-name brands like New Balance and Walmart partner with Oka Brands, but the demand for US-made goods has softened. The uncertainty surrounding trade policies has made it difficult for businesses to invest in expansion. The recent decline in small business optimism, marked by a four-month slump in April, is a stark warning about the economic risks associated with high tariffs.
While some manufacturers have benefited from increased demand for domestic products, this trend is expected to fade as tariffs ease. Oka Brands saw a significant slowdown in inbound requests since Chinese tariff rates were cut to 30% from 145%. The company’s CEO predicts that 90% of these business opportunities will disappear once the tariffs are gone.
As the trade war uncertainty persists, US manufacturers face an uncertain future. The ongoing sentiment slump is a reminder of the economic risks associated with high tariffs and broader uncertainty.
Source: https://www.axios.com/2025/05/16/tariffs-made-america-small-business