Tariffs have affected the sales of one-third of Ohio manufacturers, with a higher percentage of companies being hurt by the tax than benefitting from it, according to a report released today by MAGNET, a Cleveland-based nonprofit focused on strengthening the industry.

The “Tariffs and Turbulence” report is based on a survey of nearly 270 CEOs and other leaders from a cross section of Ohio manufacturing companies. The survey gives a breakdown of the 33% of manufacturers whose sales were affected by tariffs. Eighteen percent lost sales while 15% saw an increase in sales.

At first glance, the numbers don’t seem that far apart. Then compare the average loss in sales to the average gain. The survey shows the losses are deeper than the higher gains. The average loss in sales was 16%. Companies that benefitted from tariffs had an average gain of 9%.

To think that in six months, tariffs are affecting the sales of a third of our companies – some for better, some for worse. That’s huge.”

Ethan Karp, president and CEO of MAGNET, which surveyed Ohio manufacturers about how tariffs had impacted sales.

MAGNET has done an annual survey of manufacturers for years. This year the nonprofit decided to focus on tariffs since manufacturing is among the industries that was projected to be most affected by the tax, said President and CEO Ethan Karp. The survey was a way to get some numbers on the impact of tariffs.

“To think that in six months, tariffs are affecting the sales of a third of our companies – some for better, some for worse,” Karp said. “That’s huge.”

President Donald Trump imposed the first tariffs in February. The survey, which has a margin of error of plus or minus 4%, was taken between August and October. 

Since imposing tariffs, Trump has lifted some and raised and lowered others. It is uncertain whether the tariffs will remain in place. The U.S. Supreme Court will rule this term on whether Trump has the power to unilaterally impose tariffs without congressional approval.

“Uncertainty over future policy has definitely reduced order sizes,” Mark Dawson, president of Cleveland Steel Tool, said in the report. 

Tariffs have created winners and losers, MAGNET survey finds

Tariffs have created winners and losers. Winners include Ohio companies

whose products are now more competitive with imports. Many domestic manufacturers have complained that the prices on some imports are unrealistically low. The tax on imports has brought their prices more in line with products made here. 

Another win is bringing overseas production to Ohio. The report says that there is  “early evidence of steady reshoring.” Nine percent of those surveyed said that they had brought previously outsourced work back to the U.S., more than double 2021 levels. Sixty percent of the reshored production returned from China and 25% from Europe, the survey found.

Jack Schron, president of Jergens Inc. in Cleveland, said that sales have increased due to tariffs. His company’s Advanced Systems Group makes a $10,000-plus screwdriver used in industry to assemble electronics such as cellphones and computers. In a May Signal Cleveland article, he said he was counting on tariffs to eliminate what he considered unfair foreign competition.

“We’re experiencing record growth due to our competitive U.S. manufacturing advantage over foreign, tariffed competitors bringing their products from overseas,” he said in MAGNET’s report.

Tariffs have been challenging for other companies. These include Ohio companies that have had to pay more for imported materials needed to make their products. Other companies suffering a blow from tariffs include Ohio manufacturers that sell their products abroad and have been affected by retaliatory tariffs from other countries.

More than 75% of the hardest hit manufacturers are smaller firms and those making products for which they have trademarks, patents or other exclusive rights, the survey found. 

Cleveland Steel Tool is among them. The company has seen its steel costs rise by 50% while orders from Mexico are down dramatically due to retaliatory tariffs, Dawson said. 

“I did not expect such negative impacts, but I also did not expect any positive impact, because all my competition is U.S. based,” he wrote in an email to Signal Cleveland.

“The rising costs cannot all be passed on, and so have to be partially absorbed,” he wrote. 

Dawson said the company has had to make adjustments by reducing inventory and what it purchases, reducing staff or cutting their hours. Cleveland Steel Tool has also put off making major investments, such as in equipment, that are designed to generate income or improve the company’s value

The largest share of those surveyed – 43% – said tariffs hadn’t affected sales, while 24% said they expected tariffs to increase sales.

The expected increase in sales could appear optimistic given the reality. Those who have actually seen an increase in sales represent a minority of those surveyed. Survey respondents were also optimistic about future growth. In 2026, 66% of Ohio manufacturers are projecting growth.

“They’re saying, ‘It hasn’t affected me yet, but it’s going to,’” Karp said. “They see this [tariffs] as a big boon for the United States.’’

Some of the survey’s foreshadowed concerns include:

40% of manufacturers said that rising material costs are hindering growth. 

Nearly 30% of manufacturers said that political uncertainty is hampering or significantly hampering growth. This is the highest level since tracking political certainty began in 2018. Back then, it was 13%.

 71% of manufacturers no longer rank new product development among their top three priorities. Rising costs and lower sales, especially among smaller companies, are contributing to this by cutting into innovation budgets, the survey found.

“If you don’t invest in innovation, you’re not going to have any product to sell,” Karp said. “You’ll eventually lose your business.”