TAG Industrial Watch: March 28, 2026

Headlines regarding the impact of the administration’s tariffs are starting to express the same concerns that TAG anticipated last year. Instead of providing a much-needed boost to manufacturing, the duties are unintentionally undermining domestic producers. The reason is simple, roughly 60% of everything the U.S. imports are not consumer goods, but intermediate and capital goods used to sustain domestic production. In a recent article, the Associated Press highlighted Allen Engineering Corp. in Arkansas, a company that relies heavily on imported parts and engines to assemble industrial equipment used to install, finish, and pave concrete. The owner, Jay Allen, stated that the company ran at a loss in 2025, has already reduced employee headcount from 205 to 140 workers, and recently raised prices 8% to 10% to offset the tariffs.

Despite the recent Supreme Court decision that ruled President Trump’s reciprocal tariffs unconstitutional, his administration is exploring ways to legitimize high tariff rates going forward. If you are an industrial owner-user and find yourself in Jay Allen’s shoes, you may not be able to influence international trade policy, but there is something you can do to weather the economic storm. By conducting a sale-leaseback, industrial owner-users can raise business capital to help maintain business operations and employment. But with interest rates on the move again, owner-users may want to act decisively before the impact of higher mortgage costs starts to weigh on property values.