A Clock Maker Falls Victim to China Tariffs
August 30, 2018
- Author: Caitlin Cline
Allan McCormick was first exposed to the clock-making business while stationed in Germany as a Military Police K9 handler. Soon after, he started a clock business of his own in 1983 – La Crosse Technology Ltd. – and now his Wisconsin-based business sells a variety of clocks and weather instruments, employs more than 90 people and supplies customers across the globe including retail giants such as Costco, Target, Amazon and Walmart.
McCormick is living the American dream – but China tariffs threaten his business’ stability. The weather-related consumer products that are to be taxed are essential to building La Crosse’s products.
“These aren’t the type of products that have benefitted from the practices associated with the Chinese industrial programs the Section 301 tariff is meant to counter,” says McCormick.
The weather instruments and clocks produced by La Crosse are made in China – McCormick says it’s been impossible to find a U.S. manufacturer willing and able to produce their products at a marketable price point. The proposed tariffs will impact 67 percent of La Crosse's inventory – and due to their agreements made before the tariff announcements, they’re required to keep product prices at pre-tariff levels. La Crosse is faced with having to break contractual agreements made with customers or pay some or all of the 25 percent tariff themselves – which vastly exceeds the company’s gross profit margins.
“If cuts to employment are not successful, or if customers are not willing to support higher prices, lower sales and stagnant innovations, we will need to prepare to shutdown much of our consumer weather instrument business,” says McCormick.
While the China tariffs attempt to fight intellectual property theft, the products being taxed aren’t typically the target of these practices.
U.S. consumers will pay the price of the trade war
“Our end customers in the U.S. will be initially burdened with higher prices for our products,” said McCormick. “We expect this also means fewer customers will buy our products which will reduce the selection of weather-related consumer products – including thermometers, weather stations and weather radios.”
The China tariffs have become a severe challenge for many companies, including McCormick’s.
“It’s sad to think our government is delivering this crippling blow,” says McCormick. “I feel helpless to fight the tariff despite the obvious injustice.”
These tariffs are hurting hardworking American companies that are employing U.S. workers, contributing to the U.S. economy and are innovating on our soil. The trade war could put many American dreams on hold and shake the economy tremendously.
Keep Americans in business, keep unemployment low and let our economy thrive – ditch the tariffs. You have until Sept. 6 to make your voice heard.
Join our community of innovators and shape the future of technology.