Josh Smith has seen the rapid growth of his knife business since he started it during the pandemic. Appearances on Fox News and Joe Rogan, among many others, had him well-positioned to sell a quality product with an ever-expanding market. Then Trump got into office and it all went pear-shaped.
Source: Associated Press
Josh Smith, founder and president of Montana Knife Co., called himself a Trump voter but said he sees the tariffs on foreign steel and other goods as threatening his business.
For instance, Smith just ordered a $515,000 machine from Germany that grinds his knife blades to a sharp edge. Trump had imposed a 10% tax on products from the EU that is set to rise to 15% under the trade framework he announced Sunday. So Trump’s tax on the machine comes to $77,250 — about enough for Smith to hire an entry-level worker.
Smith would happily buy the bevel-grinding machines from an American supplier. But there aren’t any. “There’s only two companies in the world that make them, and they’re both in Germany,” Smith said.
Then there’s imported steel, which Trump is taxing at 50%. Until this year, Montana Knife bought the powdered steel it needs from Crucible Industries in Syracuse, New York. But Crucible declared bankruptcy last December, and its assets were purchased by a Swedish firm, Erasteel, which moved production to Sweden.
Smith beat the tariffs by buying a year’s worth of the steel in advance. But starting in 2026, the specialty steel he’ll be importing from Sweden is set to be hit with a 50% duty.
“The average American is not sitting in the position I am, looking at the numbers I am and making the decisions each day, like, ‘Hey, we cannot hire those extra few people because we might have to pay this tariff on this steel or this tariff on this grinder,”’ he said. “I want to buy more equipment and hire more people. That’s what I want to do.”
And it's not just Josh Smith, but thousands of others just like him who put their faith in Trump and who got punched in the nuts. It doesn't get much redder than in Idaho:
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.”
The interconnectedness of world economies is a reality. The snake oil that Trump is peddling, where everything can be sourced and made here, is just some bullshit fantasy that helped get him elected.
On April 30th, Josh Smith of Montana Knife Company said you won't have to worry about tariffs if you buy American.
Last week, he realized his costs are going up bc he imports equipment and steel. And so do his suppliers.
IMO many people aren't aware of how much they import. pic.twitter.com/vIHREvg3bh— derek guy (@dieworkwear) August 3, 2025
