Saginaw Firm Feels the Sting of Tariffs

SAGINAW, Mich. (WNEM) – A business based in Saginaw is experiencing the effects of the tariffs imposed by the Trump administration.

Much of the inventory for Hayes Specialties Corporation originates from China. According to the company president, Jim Hayes Jr., many of these products are currently being held up, which is occurring at an exceptionally inconvenient time.

Hayes mentioned that summer is his peak season due to many products ending up at amusement parks, carnivals, school festivals, and retail outlets. He also stated that if Trump’s tariffs on China aren’t removed shortly, this year would turn out to be a complete loss for them.

"We bring products from China and distribute them nationwide, including locally," Hayes stated.

Hayes mentioned that a significant part of his merchandise originates from China. According to him, due to the tariff policies implemented by the Trump administration, he cannot cover the costs associated with the high duties for an extensive order placed last year. Consequently, this shipment remains stranded at a Chinese port.

"We likely have around 12 to 15 containers full of products that were ordered over six months ago, often even earlier, intended for our peak summer season when we essentially had to halt operations," he explained.

Hayes said if that product isn’t moved in two to three weeks, it will be a lost summer for the company. Many of the items are used in amusement parks, carnivals, school festivals, and retail shops.

"It's frustrating since we essentially have no say in the matter. We're working hard to fulfill our orders using only the stock currently available," Hayes explained.

He said has about a couple of weeks of inventory on hand. Hayes said another division of the company sells American-made popcorn and cotton candy machines and equipment used in snack bars and concession stands, but he said doing the same thing with toys isn’t economically feasible.

“There’s not the equipment to make it. There’s not the infrastructure. There’s not the labor force. There’s not a lot of things that will allow these type of goods to be made in the U.S.,” he said.

Hayes remains hopeful that his enterprise will pull through.

“Unless this goes on for a year, which even Trump has said that he would like to get this resolved in a shorter timeframe than that. So, we’ll bounce back. We always have. And we have a great crew, we have great staff, and great salespeople here and around the country that do a great job for us. And we’ll adapt and figure it out, whatever it ends up being,” he said.

Hayes mentioned that losing a significant portion of his summer income could negatively affect his overall profits; however, he will only understand the real consequences for his business come September.

Subscribe to the TV5 newsletter and get daily updates of the most recent local news and weather directly in your inbox.