Montana Knife Company is exactly the kind of American business that President Trump claims to support. The brand’s founder, Josh Smith, founded the company in his garage during the pandemic, with a dream to sell quality knives made in the U.S. Smith’s business grew like a “rocket ship” during the Biden administration, though Smith still described the former president’s economic policies as “horrendous.”
Smith “adamantly supported” Trump during the 2024 campaign. But, with Trump’s trade war causing higher taxes on imported goods and general confusion for U.S. businesses, Smith slammed the president’s tariff policies in a lengthy video explaining his company’s situation.
“Punish the guy making the knives in Taiwan and in China. I’m fine with that,” Smith said in the latest episode of his podcast, The Josh Smith Show. “But I’m the guy making knives in America, Donald Trump. Don’t punish me for making knives in America by tariffing my equipment and my steel supply. Tariff the guy that’s doing absolutely jack shit in America. That’s called nuance in your policies, and that’s what I’m asking for.”
Several outdoor brands have issued statements in recent weeks pleading with lawmakers for an end to the tariffs. But few of them illuminate the tariffs’ negative impact on U.S. businesses better than Montana Knife Company (MKC).
Tariffs Impede U.S. Manufacturing
The reasoning behind Trump’s trade war is simple: Increase taxes on imports to encourage U.S. businesses to bring back manufacturing jobs. For businesses already making products in the U.S., those increased taxes (also called tariffs) often result in increased prices for products made overseas. That, in turn, is meant to encourage American consumers to buy U.S.-made products.
But, according to Smith, that’s not what’s happening, and it’s because the Trump administration’s implementation has been ill-considered.
MKC makes its knives in the U.S., but must rely on imported steel. Smith would prefer to buy American-made steel, but New York–based Crucible Industries — the country’s last major steelmaker — declared bankruptcy in December. It was later bought for $17.3 million by French company Erasteel.
So, for the moment, Smith is closely watching the recent deal that Trump made with the European Union (EU). That resulted in 15% tariffs on most European imports, with several major exceptions. Steel is one of them.
All steel imports from the EU will continue to receive the 50% tariff that Trump levied last month — a significant cost increase for small businesses like MKC.
Eventually, EU steel and aluminum makers will be granted a quota system with minimal or zero tariffs to replace Trump’s 50% import tariffs, Reuters reported Tuesday. However, that system has yet to be finalized. In the meantime, the tariff poses another obstacle for MKC’s plans for continued growth.
“Every other material we use is sourced in the U.S.,” Smith told GearJunkie. “Unfortunately, our steel manufacturer went bankrupt last November, and it was purchased by a European company. The supply of the highest quality knife steel is no longer produced in America.”
Impacts on MKC’s New Facility
MKC’s knives are very popular. The brand’s limited-edition drops, smart marketing, and endorsements from celebrities like Joe Rogan have quickly made them one of the country’s most visible knife brands.
That rapid growth led Smith to start construction in October 2024 of a new 51,000-square-foot facility right outside of Missoula, Mont. Plans for the building include corporate offices, a coffee shop, and a viewing area to observe the knife-making process. By expanding from the brand’s previous site, Smith hopes to create jobs for 150-200 people.
“It’s going to be a place where people can walk in and witness that the American dream is still alive and real,” Smith told a local news station last year after breaking ground for the new facility.
But Trump’s tariffs have created a major problem for Smith’s planned expansion. He still needs to buy large machinery that’s only available overseas, like a bevel grinder, which refines the sharpness and shape of blades. Without tariffs, he was looking at a $400,000 price tag to import one from Germany. But Trump’s 50% tariffs don’t exempt machinery, so now Smith is looking at potentially paying $600,000.
It’s another example of the lack of nuance in Trump’s tariff policies, Smith said.
“A tariff of any amount puts an additional burden on U.S. manufacturers that rely on materials and specialized machinery sourced from other countries,” Smith told GearJunkie. “The extra expense for tariffs will likely just slow down how much labor we can hire and how aggressively we can speculate on buying extra materials, which caps our potential growth.”
The Only Certainty? Unpredictability
When asked about the impact of tariffs, outdoor business leaders almost invariably say the same thing: It’s impossible to make decisions in an economic environment defined by instability.
During his first 6 months in office, Trump has changed tariff policies many times, and without informing American business leaders what to expect. The latest deal with the EU is another example: Even after a deal is struck, many of the details remain unclear, leaving business owners ignorant about what is actually happening.
Any modern brand plans its financials at least 1 to 2 years in advance, said Kent Ebersole, president of the Outdoor Industry Association.
“Sixty percent of the people in D.C. like the outdoors. We have friends on both sides of the aisle,” Ebersole told GearJunkie. “But the chaos and inconsistency with which this is delivered, it makes it hard to plan. Not just for this year, but next year — and that’s the hardest thing.”
As the trade war drags on, more outdoor brands have taken MKC’s rare step of going public about their financial difficulties, in hopes of swaying political leaders to do something about it. That includes Wild Rye founder and CEO Cassie Abel, who wrote a column for the Idaho Capital Sun about how Trump’s tariffs “undermine the heart of Idaho’s economy.”
“Let me put it plainly: We’re facing up to $1.2 million in tariffs on a $700,000 order for our upcoming Fall/Winter line — up from the $200,000 we budgeted,” Abel wrote.
“The uncertainty of where these tariff rates will land are paralyzing, and could even eclipse the cost of the product itself. But here’s the kicker: Wild Rye is thriving. Our business is one of the fastest-growing in the outdoor industry and in Idaho. But this tariff burden is a death sentence — because we’re succeeding in an economy rigged against small businesses.”
In other words, Trump’s supposed aim to promote American manufacturing is actually doing the opposite, Smith said. The MKC founder is worried about outdoor brands going out of business, especially if the tariffs continue into the end of the year.
“I don’t need Donald Trump’s help,” Smith said in his podcast. “I just need him to stay out of my way.”
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