Emilia Sykes Tells Story Of Small Business Considering Offshoring Due To Trump's 'Reckless' Tariffs

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During remarks on the House floor last week, Rep. Emilia Sykes (D-OH) spoke about the impact of Trump's tariffs on small businesses.

Transcript

00:00Chair recognizes the gentlewoman from Ohio, Ms. Sykes, for five minutes.

00:05Thank you, Mr. Speaker.

00:06Today I rise to lift up the voice of Julie Robbins, a small business owner from Akron,

00:11Ohio, who is sounding the alarm on behalf of hardworking Americans across the country.

00:16Earthquaker Devices is a homegrown success story in downtown Akron, located in Ohio's

00:2213th Congressional District.

00:24They manufacture guitar effect pedals that are sold across the world, and everything

00:28from design to assembly is done right here in the United States.

00:32Earthquaker Devices employs 34 workers, offers premium health insurance, paid sick leave,

00:38a 401k match, and competitive wages.

00:40And in 2019, they were recognized as the SBA Exporter of the Year.

00:46In 2022, after decades of success, they invested in a state-of-the-art automated production line.

00:53This is what American manufacturing should look like.

00:56And it's the kind of manufacturing that helped build the middle class in Ohio

01:01and across the heartland.

01:02So when we talk about supporting American businesses,

01:05Earthquakers is who we should be talking about.

01:08And that's why I'm talking about them today.

01:10But today, they are facing devastating consequences.

01:13And you may ask, Mr. Speaker, why?

01:15And it's because of reckless tariff policies.

01:19Earthquake Devices saw imports raw materials because there are no domestic suppliers

01:25for the specialized electronic components that they need.

01:28But they export even more than they import.

01:31That means they bring in more money to our economy.

01:33They create jobs right here at home and in my district.

01:37But the President's tariffs have increased their cost of goods by $500,000.

01:42And let me be more specific.

01:45The cost per pedal that currently costs $0.02 would increase to $12.80 by the end of the year,

01:54according to an article in the African-American Journal.

01:57That is a 640% increase of costs.

02:01With no sight of relief, they are being forced to raise prices, cut staff,

02:06and halt domestic innovation.

02:08All because of a policy that was supposed to help American manufacturing.

02:13Julie wrote to me earlier this year.

02:15And she said, quote,

02:16Our effective tax rate has skyrocketed with no explanation or benefit to us.

02:21Where is the relief for businesses?

02:23Does the government truly not understand the impact of their actions?

02:26Or is it their goal to destroy us?

02:29She goes on to say,

02:30For the first time, I am considering offshoring our manufacturing.

02:33This had never been an option for me.

02:35But these changes imposed on American businesses make it extremely difficult to manufacture here.

02:40Think about that for a moment.

02:42The president's tariff policy, which he alleges is meant to drive domestic innovation and manufacturing,

02:47is causing a small but mighty business in Akron to consider offshoring their manufacturing.

02:52This doesn't help Ohio's 13th district.

02:54It doesn't help the state of Ohio.

02:56And it does not help the United States of America.

02:59Mr. Speaker, let's be very clear.

03:00Tariffs are a useful tool to level the playing field.

03:03And when properly implemented, they can create jobs and spur manufacturing.

03:07And trust me, as someone from Northeast Ohio,

03:10we have seen the consequences of bad trade deals and the impact of NAFTA.

03:14And we are also home to President William McKinley,

03:17who the president often quotes and references in his trade policy.

03:22But it is 2025.

03:24And it is not making America great again to push American manufacturing offshore.

03:31Ohio exports more to Canada than its next six largest foreign markets combined.

03:37And this country slapped tariffs on our allies.

03:39They retaliated.

03:40And it is our workers and our businesses and our communities who pay the price.

03:44And the foreign governments are not paying for these taxes, as the president has claimed.

03:50In 2023, Ohio exported over $58 billion of goods and services.

03:55And that's not just trade.

03:57It's opportunity, jobs, growth.

03:59And it's all being put at risk because of impulsive executive orders

04:03and a Congress who refuses to check and balance the administration.

04:07If our goal is to stop offshoring and revitalize American manufacturing,

04:12why are we punishing the companies that are driving innovation, the ones who are footing the bill?

04:16Earthquaker Devices isn't some multinational conglomerate dodging taxes and hiding profits offshore.

04:23They're a small business that turned passion for music and creativity into a business.

04:27They are our neighbors and they care about our community and they give back.

04:31We should make it easier for them, not harder.

04:33To lower costs, let's go after the price gouging billionaires and corporate monopolies,

04:38not small business owners keeping our communities alive.

04:41Mr. Speaker, I urge this body to listen to the voices of our constituents, just like Julie's.

04:45And Julie closed her letter to me with a plea, not just for her business,

04:49but for future generations and for the future of manufacturing in this country.

04:53Let us not fail them.

04:54Let us not fail Americans.

04:56Thank you, Mr. Speaker.

04:57I yield back.

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