One CEO’s Impossible Mission to Stay Ahead of Trump’s Tariffs
Machine-tool supplier Tormach tried to get ahead of a potential trade war by shifting production from China to Mexico. (Francisco Guasco for WSJ)
The small Wisconsin company has raised prices twice this year on some products. Tormach also asked a landlord to alter a lease. Then it told staff of roughly 100 employees that it was reducing 401(k) matches and eliminating some bonuses.
Tormach had thought it was prepared for a moment like this. The company tried to get ahead of a potential trade war by shifting production from China to Mexico, where it bought a factory in 2023. In August, it boosted its stockpile of Chinese-made goods by 20% to blunt the possibility of fresh China tariffs, squeezing its cash flow. It sped up plans to triple production in Mexico.
