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Investing.com -- Privately held Haas Automation, which describes itself as the largest machine tool builder in the Western world, has warned that it is scaling back its production activities amid a sharp decline in demand for its products following President Trump's tariffs.
The company, which has been in operation since 1983, cited recent tariffs as a significant factor affecting its business. In response to the decreased demand from both domestic and international customers, Haas Automation has reduced production, eliminated overtime, and put a freeze on hiring at its Oxnard, California manufacturing plant, where it employs 1,700 workers.
The company is currently evaluating the full extent of the tariffs' impact on its operations. As part of its cautious approach, Haas has also paused new employment requisitions. Despite these challenges, Haas remains hopeful that the Trump Administration will implement measures to alleviate the pressures faced by U.S. manufacturers like themselves.
Haas Automation's concerns are particularly focused on the potential for reduced tariffs on machine tools imported from countries such as Japan, Taiwan, and Korea. The company warns that without a similar reduction in tariffs for imported raw materials and components, the $5 billion U.S. machine tool industry could suffer greatly. This industry is not only vital for economic reasons but also plays a crucial role in U.S. national security.
Machine tools are the backbone of the U.S. manufacturing sector, and any threat to this industry could have widespread implications.
Haas Automation is calling on the Trump Administration to honor its commitment to American manufacturing.
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The company is advocating for two specific forms of support: tariff exemptions for essential raw materials and components, and the maintenance of tariffs on machine tools imported into the United States.
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