News Summary
Tennessee businesses are facing mixed effects from President Trump’s 25 percent tariffs on steel and aluminum. While some companies, like Bennett Industries, report increased demand and workforce expansion, others are experiencing rising operational costs. The tourism sector in Nashville is particularly affected, seeing a downturn in Canadian visitors, which could lead to significant economic losses. Local leaders express concern over the long-term implications of the trade disputes, as businesses adapt to the shifting economic landscape caused by tariff adjustments.
Tennessee businesses are grappling with the widespread effects of President Donald Trump’s 25 percent tariffs on steel and aluminum, impacting local industries and tourism in mixed ways. While some businesses are reporting increased opportunities, others are facing rising costs that may hinder their operations.
Businesses engaged in exporting and importing steel to Canada are particularly feeling the strain of the tariffs. For instance, Bennett Industries of Tennessee, which has adapted by purchasing more from U.S. steel producers, reports that the tariffs have resulted in a notable demand increase. Consequently, the company has expanded its workforce and is now operating seven days a week to meet the heightened demand. While there have been slight increases in steel prices, the company anticipates that the long-term benefits will outweigh these challenges.
Conversely, various businesses in the region are confronting higher prices imposed by U.S. steel and aluminum suppliers due to the tariffs. Many metal fabricators and suppliers have opted not to publicly comment on the tariffs, likely due to concerns over potential repercussions.
The tourism sector in Nashville, which relies significantly on international visitors, is experiencing a downturn, particularly from Canadian tourists. Approximately half of Nashville’s international visitors come from Canada, and since the implementation of the tariffs, interest in travel to Nashville has dwindled. A significant drop in Canadian tourism could lead to more than $2 billion in lost spending for the U.S. economy, a matter of growing concern as Nashville’s tourism generated over $10 billion in revenue in 2023.
Music and tour businesses in Nashville have reported cancellations and a decrease in clientele from Canada, with advanced bookings from major Canadian cities down about 20%. The reduction in air travel is compounded by Flair Airlines’ recent decision to cancel its service, leaving only two carriers operating direct flights between Canada and Nashville, thus restricting access further.
Local leaders, including Nashville City Council members, underscore the potential detrimental effects of the ongoing trade dispute on local economies and tourism. Companies such as Auratone, a speaker manufacturer, have faced increased costs due to tariffs imposed on imported components from China and Europe, which has challenged their pricing and profit margins. This pressure has caused Auratone to consider relocating production overseas to offset increased costs.
Retail businesses are equally impacted by the tariffs. Planet Cowboy, a retailer specializing in cowboy boots, sources approximately 50 percent of its inventory from Mexico, and tariffs could trigger higher retail prices. The business owner expressed concerns about rising costs associated with rent, shipping, and labor as a direct result of the tariffs; however, there remains a sense of optimism that some domestic industries might see growth due to these trade adjustments.
Overall, the landscape of Middle Tennessee businesses is shifting as they navigate the complexities of the tariffs. While opportunities are emerging for some, others are preparing for significant economic challenges and potential price increases. The intertwined futures of local manufacturing and tourism remain uncertain as businesses adapt to the evolving economic climate.
Deeper Dive: News & Info About This Topic
- Axios: Tennessee-China Tariffs Imports
- Wikipedia: Tariffs
- CBS News: Trump Tariff War Impact on Nashville Economy
- Google Search: Trump tariffs impact
- CNBC: Nashville Family Business and Trump Tariffs
- Google Scholar: Trump tariffs economic impact
- WKRN: Trump’s Tariffs Impact on Nashville Auto Repair Shops
- Encyclopedia Britannica: Economics
- Fox17: Nashville Asian Restaurants Struggling Amid Trump Tariffs
- Google News: Trump tariffs restaurants
- Tennessean: Trump Tariffs and Nashville Food Retail Prices
Author: HERE Nashville
The NASHVILLE STAFF WRITER represents the experienced team at HERENashville.com, your go-to source for actionable local news and information in Nashville, Davidson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as CMA Fest, Bonnaroo Music & Arts Festival, and Nashville Pride Festival. Our coverage extends to key organizations like the Nashville Area Chamber of Commerce and Nashville Health Care Council, plus leading businesses in healthcare, automotive, and technology that power the local economy such as HCA Healthcare, Bridgestone Americas, and Asurion. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREKnoxville.com, and HEREMemphis.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
