The Impact of Trade Wars on Easy Signs’ Growth Prospects

The Impact of Trade Wars on Easy Signs’ Expansion Plans

If it weren’t for the ongoing trade war between the two largest economies in the world, Easy Signs would be on the path to significant growth, hiring dozens of new employees at its manufacturing facility in Allentown, Pennsylvania. The company was also considering plans to establish a second plant in the West, with Salt Lake City being a potential location, which could create an additional 100 jobs.

Easy Signs, which is headquartered in Australia, specializes in producing banners and marketing installations for corporate events. The company utilizes large-format printers to emblazon logos and slogans onto expansive rolls of cloth. With its American operations experiencing an impressive growth rate of 70 percent annually, Easy Signs is now faced with the difficult decision to postpone its expansion plans.

The cloth signs manufactured by Easy Signs are supported by aluminum stands that are sourced from China. Unfortunately, these essential products have become subject to a series of tariffs that can reach as high as 365 percent. This policy was initiated by former President Donald J. Trump and has been upheld by the Biden administration, all in an effort to protect American industries from perceived Chinese government subsidies.

The situation could become even more challenging if Trump wins the upcoming presidential election in November, as he has threatened to impose an additional tariff of 60 percent or more on all Chinese imports, along with a 10 percent tariff on all other foreign goods. Such measures would further complicate the cost structure for Easy Signs.

“That’s definitely a scary concept,” expressed Andy Fryer, co-founder of Easy Signs. “The entire feasibility of our growth plans goes out the window under those circumstances.”

The Allentown, Pennsylvania factory of Easy Signs stands as a testament to the challenges faced by many businesses in the current economic climate.