Aluminum and steel are products that Hyspan Precision Products in Chula Vista cannot live without. They are the raw materials the employees here use to make products.
“We manufacture expansion joints, ball joints, really solutions for industrial commercial applications," said Hyspan president and CEO Eric Barnes.
Between 80 and 100 people are employed at Hyspan, in good-paying manufacturing jobs.
But Barnes is concerned about the impact of the 25% tariffs set to go into effect Tuesday on products from Mexico and Canada.
“This entity is composed of this plant here, as well as we have a maquila down in Tijuana, so we will be directly impacted by the 25% tariff if it’s coming back into the United States," Barnes said.
Hyspan in Chula Vista is the umbrella company for other manufacturing entities, and that’s where even bigger headaches come for Barnes. One of their subsidiaries manufactures parts for cars and trucks.
“We are in negotiations currently with those automotive companies to figure out, 'How do we pass on these tariffs?' Because we, as a company, cannot bear to just absorb those tariffs," Barnes said.
The looming tariffs also make Ed Pentico’s job more difficult. He’s the director of sales and product development.
“Sometimes these, in the short term, are very difficult for us as manufacturers, because there are many different things to manage at the same time besides our normal day-to-day business. So now, we have to set aside some resources to manage these other activities, these other issues that makes us even less competitive," Pentico said.
So, unless there are any last-minute changes, we now know the tariffs are coming, but what happens after they go into effect? That’s uncertain, and uncertainty is something business leaders try to avoid.
“Because when you have stability, business people are then willing to invest. If you don’t have stability, you can’t put — make a big outlay into a fixed asset, or capital expense that then may become useless. You can’t do that," Barnes said.
Barnes said he’s done everything he can think of to prepare for this round of tariffs. But this might not be the last shoe to drop. The administration has also promised “reciprocal” tariffs next month, injecting even more uncertainty into what is now a volatile situation.
