SALEM, Va. – Less than a week after the Trump administration officially doubled tariffs on imported steel and aluminum, from 25% to 50%, local manufacturers like the Damon Company are already feeling the strain. But beyond rising costs, company leaders say it’s the unpredictability of shifting regulations that poses the greatest concern.
Founded in 1964, the family-owned manufacturing business in Salem specializes in the production of industrial ID tags and high-performance archery equipment. Over the decades, the Damon Company has supplied major U.S. brands like Chrysler and built a strong retail presence under its Shrewd Archery brand, serving Olympians and international distributors alike.
But Wednesday’s tariff hike is affecting the company on three major fronts: imports, exports, and retail.
When it comes to imports, Damon Co. depends heavily on foreign-sourced steel and aluminum, now significantly more expensive due to the tariff increase.
“So far this year we’ve spent about half a million dollars in raw materials like aluminum and steel,” said Laven Newsom, third-generation vice president of the company. “So, you know, when you’re looking at 15 or 20 percent, it’s a big chunk of change.”
The company’s export business, about 20% of its operations, has also been impacted. Newsom recently traveled to China, Korea, and Japan to strengthen international relationships, but he says cost concerns quickly derailed potential deals.
“Our products were extremely well-received, and it was a beneficial trip on that front,” he said. “But when I was there, the reciprocal tariffs were like 130%, so when a customer is looking at importing our products and they’re paying 130% more, you just can’t justify it.”
Still, the biggest issue may not be the rising costs themselves, but the instability they create.
“You hope the people making these decisions regarding the tariffs are a lot smarter than I am, and that there’s some larger end goal we’re working towards, but from our small view perspective, seeing that now is difficult,” Newsom said. “Explaining to our customers what’s going on is difficult. Whether or not tariffs stay, having certainty on what that looks like and if they’re definitely going to be here would be beneficial to us.”
So far, the company has held retail prices steady and intends to continue doing so through the end of the year. But Newsom admits that approach may not be sustainable for long.
“If we’re going to just constantly be raising our pricing every time a new tariff hits, it’s something our retail partners aren’t going to like, and it won’t go well,” he said. “So, across the board, we’re pretty much holding pricing.”
With deep roots in Salem, the Damon Company has supported hundreds of local jobs over its 60-year history. Newsom, who has worked at the company for a decade, says the mission remains unchanged—even in uncertain times.
“It’s the first time in my tenure that I’ve been concerned about what the future looks like,” he said. “But our number one priority is keeping this business going. Also, our average employee has been here for 15 or 20 years. We believe in full-time employees and try our best to keep them also.”