President Donald Trump’s tariff war is supposed to be a boon for American manufacturers — companies like Unionwear in Newark, which specializes in the production of hats and bags.
So far … it has been.
In fact, owner and President Mitch Cahn said he’s struggling to keep up with overwhelming interest.
“We are truly getting bombarded with inquiries right now,” he told BINJE last week. “It took a couple of weeks, but I think businesses are realizing: ‘Wow, this may actually stick around for a while. We’re going to need to find some alternative sources.’”
The increase in interest has been organic, too, Cahn said.
“They’re finding us on Google and calling us,” he said. “These are major brands — brands we’ve never heard from before — that are reaching out.”
A great American success story born from the tariff talk?
Not so fast, Cahn said.
“We’re not sure whether or not it’s going to actually lead to business, because I think people are definitely playing a wait-and-see game,” he said. “But, we are definitely making a lot of contacts, which is something that is setting us up for success in the future, particularly next year.”
Next year may be the key to all of this.
When the U.S. celebrates its 250th birthday in 2026, companies will be looking to domestically source promotional goods — regardless of cost.
“Companies are going to be looking at country-of-origin labels,” he said. “No one wants to sell a USA 250th anniversary product with a ‘Made in China’ label. They know the backlash — particularly with social media — could be huge.”
It’s the same reason why Cahn always benefits from presidential elections.
“We’re always well positioned when people need a ‘Made in the USA’ label,” he said.
To be more accurate, Cahn and Unionwear have been well positioned for decades — or since he bought the company in 1992 after a brief career at Bear Stearns.
Cahn said he has proudly used union labor from the start, ensuring a high-quality product from a dedicated workforce.
And he jokes that it took decades to become an overnight sensation — following a flurry of media coverage he received last summer as the only “Made in the USA” producer of hats for the presidential ticket of Kamala Harris and Tim Walz. He recently was named a finalist for EY’s prestigious Entrepreneur of the Year award, too.
All of this has taught him to be ready for anything.
Cahn said he’s confident the milestone anniversary will bring business — orders should be getting finalized by the end of the year, he said.
“It’s brands in fashion industry, brands who do licensed merch side, brands who buy promotional products — they’re all contacting us for the first time, looking for domestic sources,” he said.
The tariffs, he said, will have little impact on those sales.
As for his more traditional sales, the impact of the tariff talk remains to be seen.
“I think a lot of companies are reaching out and hoping to hear that our price is going to be competitive with prices from other countries when a tariff is applied,” he said.
There’s no guarantee it will be — especially if the increased tariff ends up being much lower than what is being threatened now. Think 10%, not 110%.
“A 10% tariff does not really make a meaningful difference,” he said. “Remember, the tariff is only on the cost of the goods coming out of China. It’s not on any of the other costs that are associated with it. So, if a hat out of China only costs a couple of dollars, it’s only going to increase it by 20 cents. These are hats that sell for $35 or $40, so that cost can be absorbed along the line.
“Where it really could have an impact is on companies where their entire cost is what they’re paying a Chinese supplier, plus a small amount for ocean freight. Then, their price more than doubles. That’s where we start to become more competitive.”
That seemingly is the goal of all the tariff talk. The goal is to benefit manufacturers like Cahn and Unionwear, which sources almost the entirety of his production line from the U.S.
“We’re uniquely positioned in that we don’t really buy much from overseas, and we don’t export anything — so, we’re not going to be hurt by tariffs or retaliatory tariffs,” he said. “So, we’re in a good position if the tariffs stick around.”
Cahn, however, warns this scenario isn’t perfect, either.
“It’s good for our business, but I don’t think it’s good for the economy, and a weak economy hurts our overall business,” he said.
