Reuters reported on July 2, 2025 that several small consumer brands looked at moving production to the USA after steep 2025 tariffs on Chinese imports, and found the math did not work for their customers or retailers, at least not yet.
What Reuters found
Reporter Siddharth Cavale profiled Plufl, a Shark Tank-funded maker of “dog beds for humans.” Its founders found a Las Vegas factory that could make the memory foam bed for $150 per unit, compared with about $100 all-in in China. But the faux fur cover lining would still have to be imported, adding about $100 more. Costco passed on a sub-$500 USA-made version, and the company stayed with Chinese production at a $299 price.
Other examples: Moment, a beverage brand made in Wisconsin, saw can costs rise about 20% because its packager imports pre-formed aluminum. Simplified, a Pensacola, Florida, stationery brand, said a planner it makes for about $12 in China would cost $38 in the USA. Bugaboo said building a stroller supply chain in the USA would take several years.
“The United States simply does not have the infrastructure.”
Emily Ley, CEO and founder, Simplified, to Reuters
Why it matters for Made in USA
This story is the honest flip side of the reshoring boom. Tariffs can make imports more expensive, but they do not instantly create USA suppliers for foam, faux fur, aluminum can stock or stroller tooling. A product is only as domestic as its least available component.
It also shows why the FTC’s “all or virtually all” standard is hard to meet, and why qualified claims like “Made in USA with imported materials” exist. For brands that want to reshore, the path usually starts with the parts that are available here, one supplier at a time. For policymakers, the gap is clear: rebuilding the component base is what turns a tariff into a factory.
FAQ
Why didn’t these brands move production to the USA?
Reuters reported that domestic production cost more, some materials were not available domestically, and retailers resisted higher prices.
How much more did USA production cost in these examples?
In Reuters’ examples, a planner went from about $12 in China to $38 in the USA, and a foam bed from about $100 to $150 before an imported lining added roughly $100.
Can a product with imported parts be sold as Made in USA?
Not with an unqualified claim if the foreign content is significant. A qualified claim, such as “Made in USA with imported materials,” can be used if accurate.
Source & credit
Originally reported by Reuters (Siddharth Cavale) on July 2, 2025: They tried Made in the USA. It was too expensive for their customers