MILWAUKEE — A 93-year-old Milwaukee model railroad company is facing significant challenges due to President Trump's tariffs on China, threatening its path to reaching 100 years in business.
Stacey Walthers Naffah, CEO of Walthers, is navigating her fourth-generation family-owned hobby business through difficult economic waters as tariffs on products from China have reached 145%.
"It becomes incredibly expensive for us to even bring in the product, because we are the ones that pay that tariff," Naffah said.
Watch: Milwaukee model railroad equipment company worried about tariffs on China
While President Trump has put a 90-day pause on reciprocal tariff increases for some countries, China remains excluded from this relief.
The company has already raised some prices to cover costs, but the situation could worsen if the tariffs continue.
"This locomotive, we wanted to sell it for $319. If we had to raise our prices to cover that cost, we'd have to charge $458 just for that one product," Naffah said.
The timing is particularly concerning as the company and the hobby industry builds inventory for the holiday shopping season, and Naffah emphasizes they need a solution immediately.
"We would love an exclusion, which there was an exclusion process the last time back in 2019," Naffah said.
Her approach focuses on policy issues rather than the politics of tariffs. She acknowledges merit in efforts to bring manufacturing back to America but notes the practical challenges.
Some products in their store come from Vietnam and Taiwan, with a few industry items made in America.
"It's a noble goal to try to figure out how to get domestic manufacturing back here right now. We're not opposed to trying to figure that out, but that takes time, and that takes money," Naffah said.
Naffah built her career in advertising, marketing, and sales before returning to lead the family business, and she remains determined to find a solution.
"We're 93 years old, and my goal is to get us to 100 or beyond, and we have a plan do that," Naffah said.
WATCH: TMJ4 Web Exclusive:
Naffah talks about why the model train and hobby industry are important to not just the American economy but for kids interested in STEAM - Science, Technology, Engineering, Arts and Mathematics.
This story was reported by Charles Benson and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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