How One Company Is Navigating a New Era of Tariff Uncertainty - The Journal Recap

Podcast: The Journal

Published: 2026-02-26

Duration: 23 minutes

Guests: Chris Peterson

Summary

Newell Brands faces a challenging tariff environment, prompting them to shift more manufacturing to the U.S. and consider pursuing tariff refunds.

What Happened

Newell Brands, known for products like Crockpots and Yankee Candles, paid over $170 million in tariffs last year, significantly impacting their business. CEO Chris Peterson discusses the Supreme Court's recent ruling that many global tariffs are illegal and how the company is considering seeking refunds for tariffs paid under the IEPA, deemed invalid.

Newell has been actively moving its manufacturing base, with 57% of its U.S. sales now made domestically. This shift includes reducing reliance on China, with less than 10% of its products now sourced from there, diversifying to other Asian and Latin American countries.

Despite the tariff challenges, Newell successfully transitioned Sharpie manufacturing to the U.S., enhancing operational efficiency and maintaining its competitive edge. The Sharpie plant in Maryville, Tennessee, was modernized, becoming a highly automated facility that significantly boosts productivity.

Peterson explains that while the company aims to manufacture more in the U.S., certain products like Graco car seats remain overseas due to regulatory complexities and established supplier bases.

The tariffs have forced Newell to raise consumer prices, affecting market share temporarily. However, Peterson notes that their pricing strategy has stabilized, allowing them to remain competitive.

Peterson believes that the U.S. is well-positioned for increased manufacturing due to automation advancements, which reduce labor costs as a factor. He sees this as an opportunity to create sustainable careers in the manufacturing sector.

While most of the Sharpie pen components are now made in the U.S., the felt tip is still sourced from Japan due to a strong supplier relationship. Newell has not prioritized changing this yet.

Key Insights

• Newell Brands paid over $170 million in tariffs last year, a significant financial burden that led them to consider seeking refunds following a Supreme Court ruling that deemed many global tariffs illegal under the IEPA.
• In a strategic shift to reduce reliance on China, Newell Brands now manufactures 57% of its U.S. sales domestically, sourcing less than 10% of its products from China and diversifying to other Asian and Latin American countries.
• Despite tariff-induced price hikes impacting market share, Newell stabilized its pricing strategy to maintain competitiveness, illustrating how companies can adapt to external economic pressures.
• Automation advancements make U.S. manufacturing increasingly viable by lowering labor costs, a shift Newell Brands capitalized on by modernizing its Sharpie plant in Maryville, Tennessee, into a highly automated facility.

Key Questions Answered

How is Newell Brands responding to tariff challenges?

Newell Brands is reducing reliance on Chinese manufacturing, shifting production to the U.S., and considering pursuing refunds for tariffs paid under invalidated policies.

What changes did Chris Peterson implement at Newell Brands?

Chris Peterson focused on reshoring manufacturing, investing in automation, and adjusting pricing strategies to mitigate tariff impacts.

What are the key challenges in moving Sharpie production to the U.S.?

Transitioning Sharpie production involved modernizing the Maryville plant, enhancing automation, and insourcing component production, except for the Japanese-made felt tip.