Tariffs meant to boost USA manufacturing are also raising the cost of building USA factories, Modern Retail reported on September 11, 2025, citing syrup maker Torani and custom patch maker World Emblem.
A $3 million surprise
Torani planned a $60 million sauce production line at its operations in San Leandro, California, where its 630,000-square-foot “Flavor Factory” opened in 2020. President Tai Doong said steel tariffs that took effect in the spring added about $3 million. The company postponed other factory upgrades but still expects to commission the line in mid-2026. Torani employs more than 400 people and expects its expansions to add about 80 manufacturing jobs by 2027.
“These types of dramatic, unplanned costs can feel like handcuffs for American manufacturers trying to invest and expand.”
Tai Doong, president, Torani, to Modern Retail
World Emblem, which makes about 30% to 35% of its products in the USA, is adding a 200,000-square-foot facility in Houston and a 100,000-square-foot facility in Atlanta, focused on automation and 3D printing. CEO Randy Carr said the new plants cost about 50% more than they would have five years ago, mostly because of imported steel and aluminum. The company is also expanding in the Dominican Republic, Mexico and Canada.
Modern Retail cited an Associated General Contractors of America survey that found 16% of firms had postponed, canceled or delayed at least one project because of tariffs.
Why it matters for Made in USA
Tariffs make imported goods more expensive, which can help USA makers. But the steel, aluminum and equipment needed to build or expand a USA plant are often imported too. Companies like these are adding USA capacity anyway, but more slowly and at higher cost.
The World Emblem example also shows that many brands make some products in the USA and others abroad. Shoppers should check the origin claim on each product, not assume the whole brand is made in the USA.
FAQ
How much did tariffs add to Torani’s new line?
About $3 million on a $60 million sauce line, according to president Tai Doong.
Where is World Emblem adding USA production?
In a 200,000-square-foot Houston facility and a 100,000-square-foot Atlanta facility, plus existing California capacity.
Why do tariffs raise USA factory costs?
Many building materials, such as steel and aluminum, are imported and subject to tariffs.
Source & credit
Originally published by Modern Retail (Melissa Daniels) on September 11, 2025: Tariffs are driving up factory costs for Made in USA brands