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Talk to the owner of Rome Specialty Co., the terminal tackle specialist which uses only raw materials sourced from within the USA, and you might expect Jack Butts to see the tariffs imposed by President Trump is a boon for American manufacturing. But Butts takes a more balanced view.
Yes, he believes that buying US-made products is good for the domestic economy. Why wouldn’t he, given that his family-owned business is about to mark 100 years since it first began manufacturing in America and owns three well respected tackle brands in the market? But, no, tariffs are an inefficient way to bring back manufacturing. That ship has sailed, says Butts. The costs of re-shoring are prohibitive.
Even for a well-established domestic supplier like Rome Specialty Co., there has been no immediate boost to business following the announcement of the tariffs. Customers who are panicked by the rising costs of imports are making enquiries, says Butts, but they are not placing orders just yet.
The uncertainty is the killer. His products are well-liked but there is simply no guarantee that they will be the best priced alternative in the months to come.
Butts told Angling International: “We have seen an increase in quote requests from American companies that are trying to source American-made terminal tackle. Some of these queries are turning into new customers, but time will tell when the bite from the tariffs set in.
“A lot of companies front-loaded a supply of their imports to get ahead of the tariffs and some might be waiting for more certainty on the size and scope of the tariffs.”
Rome Specialty Co. owns the ROSCO, Sampo and Donnmar brands and sources allits raw materials in the USA. Says Butts: “That’s from the brass tube, brass wire and stainless-steel wire on our ROSCO products, to the brass rod used for Sampo Swivels to the titanium and stainless-steel handles on the Donnmar pliers.”
Butts lists six reasons why his sourcing policy helps underpin the future prosperity of the USA, but also explains how the country will always rely on imports as part of the economic mix.
“The first reason is that making the choice to buy American-made products does lower the trade deficit. It is one less item that is imported from overseas. Secondly, it helps the environment. Buying fishing tackle from domestic manufacturers means that orders are not sitting in a cargo container on a ship at sea for several months.
“Shopping local means that when you buy US-made fishing tackle your hard-earned dollars are getting circulated within the American economy and not going offshore into the account of a multi-national corporation.
“The fourth reason is time efficiencies. Buying tackle from American manufacturers means that you will receive your order in a timely and cost-effective way. Plus, if there are any issues, you will be dealing with a US-based customer service department.
“The fifth reason is that we offer superior quality. Cheap imports may look similar and cost less, but you get what you pay for. When you spend thousands of dollars on a boat or fishing trip, why would you buy a cheap swivel that breaks easily?”
And the sixth and most important reason of all? “It supports American jobs,” says Butts. “Every peg in a store dedicated to American-made items directly supports American jobs.”
But Butts admits that there are costs attached to buying US-made products – costs that have been rising for decades and which have created a new economic reality.
“The cost of doing business and manufacturing is significantly higher and has resulted in a decreased market share for domestic companies.
“At one time there was no competition from China, or anywhere else for that matter, except maybe a few European companies. Today, after decades of free trade, our industry has changed dramatically.
“Most of the small family companies like ours merged with larger businesses that moved some or all their production overseas. Some of these multi-nationals then got acquired by private equity companies.” The result, says Butts, is a fishing industry that is now relying on supply chains from all over the world and not prepared for a trade war.
“Moving businesses and whole industries back to the US is inefficient and unrealistic. And creating trade barriers to force industries to reshore to the US is a losing battle.
“I agree that some of the deficits with our trading partners are concerning, but I do not believe tariffs are the answer.”
