So the company was suddenly shelling out tens of thousands of dollars in unexpected trade taxes after Trump raised tariffs on Chinese goods. Worse, the tariffs kept changing.
Twist Drill then shelled out more money because of new retaliatory tariffs stemming from Trump’s new trade war with Canada. Twist Drill ships most of its finished machined drill bits from Chisholm to its parent company in Canada.
Now, he needs to factor in the doubling of steel and aluminum tariffs.
“This is having a negative effect on us,” Wedge said. “It’s just not a good situation. And I never imagined this. I figured, you know, they’d throw these tariffs out, and there would be some back and forth, and then it would be over. But everybody’s really sticking to their guns.”
In two months, the company increased prices twice. It is cutting costs, putting off new supply orders and considering opening its machining shop to third-party customers, Wedge said. That would bring in new revenue not subject to tariffs.
Twist Drill also is considering buying specialty equipment so it can make specialty drill bits for U.S. customers, he said.
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