Got this email not long ago from Tekton.
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Hello,
I'm Tekton's CEO and am writing today to keep you informed about how new tariffs could affect your future purchases from Tekton.
Right now, the United States has imposed an extra 10 percent tariff rate on products coming from most countries. Our products come almost entirely from Taiwan, the United States, Canada, or Germany. We put the country of origin at the bottom of every product page on Tekton.com. We try to be specific about origin, down to individual components like the webbing on a pouch or the tube on a six-in-one driver. When we say a product is USA-made, we mean that the whole product is made here and that the materials are sourced in the United States.
If the extra 10 percent tariff stays in effect, we'll have to raise prices about 4 percent on most products made outside the United States. However, if tariffs go to higher rates, then higher increases are likely. Tariffs directly increase our product costs. When we receive a new shipment from Taiwan, for example, we will have to pay the tariff rate on top of the cost of the product. We will give you at least one week of notice on our website before we raise prices—like usual, we will show the new upcoming price and the date when it goes into effect.
As you may know, we are working very hard at Tekton to manufacture more of our products in the United States. We have growing CNC, plastic injection molding, electroless nickel plating, broaching, blasting, polishing, sewing, and assembly operations at Tekton. This manufacturing work started years before the new tariffs and it's going great. We also work with other U.S. companies to complete some manufacturing steps or make whole products for us. We have hundreds of items made in the United States. However, it's not easy or fast. Manufacturing things well with all the right people and equipment and figuring out all the best methods to make a highly refined tool repeatedly at an acceptable cost is a difficult process. We will keep going and we are succeeding at it. I strongly support making our tools ourselves. It's good for our company, good for you, and good for our country. We are in my view going about as fast as we can with the resources we have.
In the coming months, you will see us introduce new products made in the USA. Our new service wrench line, which will be entirely USA-made and mostly done in-house, is coming out in several weeks and it will be a more impressive service wrench than I believe has been made before by any tool company. In some cases, however, we aren't ready or able to make the product we want here in the United States, and we have a great supply chain in Taiwan, Europe, or Canada that can do it. For example, having nothing to do with tariffs, we are about to move our screwdriver program to a premium supplier in Germany that makes drivers for the tool truck market. I don't expect us to save costs moving the screwdrivers to this supplier. We are doing it because it will be a better screwdriver line overall and will free up resources to keep working on other projects, especially new USA production.
Thank you for your support. The new tariffs are not simple for us to navigate, but we have a strong company and a great user base. It's our intention to use our growth to find better and faster ways to make even more products in the United States.
Sincerely,
John Amash"