This company likes some Trump tariffs, but not others: NPR

For weary travelers, blackout curtains can be crucial for rest and relaxation.

"It's a product you know well, but you never think about it," said Mark Berman, CEO of Rockland Industries, a Baltimore-based textile company that has been manufacturing fabrics since the 1960s.

At the time, the Westin International hotel chain approached the company and asked it to make a drapery that would keep the rooms dark. Over the decades, Rockland has perfected its technology and manufacturing process: take fabrics, apply exclusive coating that gives them a quality of failure and sell them to hotels and retailers.

The company has been successful in maintaining the business despite major changes in the commodities sector.

But now, Rockland's dependence on China for these materials has put it at the heart of a growing trade war – and his view of President Trump's tariffs is rather unusual: he opposes and supports them.

"Twenty-five years ago, there were more than two dozen weaving factories in the United States that manufactured the woven textiles that we use as raw materials." Now, there's only one more factory, "said Berman.

"We absolutely have to buy our raw materials in China because they are not sufficiently available in the United States or even in other countries," he said.

Rockland's relationship with China, however, is not good. Berman cited IP theft as one of the many challenges the company faces in its dealings with this country.

"The Chinese cheat and there is no doubt," he said. "Everything we develop, usually in about six months, we see the same products coming out of the Chinese factories."

These duel realities – China is both a friend and an enemy – explain why Berman is both against and against the Trump administration's plan to levy more rights on China, this time up to 200 billion dollars.

On Friday, President Trump said that these tariffs "could be held very soon" and he raised the possibility of tariffs on 267 billion additional dollars of imports from China.

Many US leaders and trade experts have opposed the use of tariffs as a bargaining tool with China, but Berman does not see the issue in black and white.

For him, tariffs could be positive, depending on what remains on the massive list of products that the US Trade Representative has said could be affected if the next round of tariffs on imports imports from China was applied.

Some Rockland raw materials – such as some fabrics and chemicals that make opaque fabrics fire-resistant – are on the list. Fees are also available for finished fabric products manufactured by Chinese companies that compete directly with Rockland's final offerings in the US market.

Berman said that it would be fair to impose tariffs on Chinese products, but not on Rockland raw materials. He presented this case at recent public hearings on the proposed rates.

"Make no mistake: not only Rockland's business, but its very existence is threatened by unfair Chinese business practices and the damage will be reflected in the US supply chain," said Berman.

He said that 25% tariffs on finished opaque fabrics in China would be "feasible and effective" to reduce the unfair trade practices that plague and harm American companies in his industry.

Such a view echoes Trump's sentiments as his administration levied $ 50 billion worth of imports from China this summer. The president argued that aggressive tariffs would force China to change its unfair trade practices and to negotiate more advantageous trade deals for US companies.

However, Berman said any benefits from the use of tariffs on Chinese competitors would be nullified if tariffs were also applied on raw materials.

"The imposition of additional duties on the raw materials and chemicals used by Rockland will aggravate the injury caused by China's unfair practices and cause disproportionate economic harm to Rockland," said Mr. Berman at the time. 39; hearing.

Rockland already pays tariffs ranging from 5% to 15% on some of the raw materials imported from China, and Mr. Berman predicted that any new tax would be devastating for the company.

"I think we're going to lose business with Chinese competitors here in the US and what I can see is that if our sales went down, there could be layoffs in our society," he said. declared.

Rockland employs 240 people, mainly in its manufacturing plant in Bamberg, S.C.

However, Berman was not totally opposed to the Trump administration using the tariffs as a tool.

"If we could put the tariff on the finished product from China – not the raw materials we can not get elsewhere – it would increase manufacturing here in the United States and our market share," said Berman.

But some trade experts warned of the risks of using tariffs as a bargaining tactic in any capacity. The US Chamber of Commerce said the tariffs were threatening the US economy and the group advocated using other methods – such as direct negotiations – to encourage more equitable trade with China.

China has already retaliated against the United States for implementing tariffs and says it is ready to retaliate if new duties are imposed.

Jeffrey Frankel, professor and economist at Harvard University, said some of the concerns raised by American companies about China are valid. However, he said, considering tariffs as a solution is not generally wise because of the amount of imported materials that US companies rely on and supply chains that cross the borders.

"There are a lot of companies for whom the tariff war is bad news and there is some that is good news in the short term," Frankel said. "For a company where the advantages and disadvantages are sufficiently balanced, it will depend on the products affected."

Berman said he hoped his testimony would result in a positive outcome for the company, even if it was not necessarily optimistic.

"There are so many people with so many different interests," he said. "From a practical point of view, I do not see how the US Trade Representative's Office can deal effectively with all of this."