An American aluminum manufacturer is sounding the alarm over the growing financial burden of President Donald Trump’s trade policies, revealing that tariffs and transportation costs have added millions of dollars to its expenses.
Shapes Unlimited, an Ohio-based manufacturer and distributor of aluminum building products, estimates that additional costs have reached between US$4.5 million and US$5 million in 2026. Chief executive Doug Rende says shipping surcharges have also climbed above US$6,500 per container as the conflict involving Iran drives up fuel and freight costs.
The financial pressure has already influenced the company’s hiring and manufacturing plans, highlighting a difficult reality for businesses operating within America’s changing trade environment.
The situation also has implications for Canada, America’s leading foreign supplier of primary aluminum, as escalating trade tensions disrupt established supply chains and complicate cross-border investment decisions.
Ohio Aluminum Manufacturer Faces Nearly $5 Million in Additional Expenses
Shapes Unlimited, a privately held manufacturer and wholesale distributor based in North Jackson, Ohio, has reported a substantial increase in operating expenses as tariffs and freight charges place pressure on its business. Speaking with Agence France-Presse in reporting published October 11, chief executive Doug Rende estimated that the company’s additional costs for 2026 were running between US$4.5 million and US$5 million. The financial burden reflects a combination of higher aluminum-related expenses and rising transportation charges rather than a single isolated cost increase.
The company supplies aluminum products used in fencing, gates, railings, windows, and other building applications. Its customers include contractors, dealers, installers, and distributors who depend on predictable pricing and reliable deliveries. A company in this position can face higher costs when importing materials while also encountering resistance from buyers unwilling to pay substantially more for finished products. Rende described the situation as frustrating, particularly because businesses have limited influence over the international policies driving those expenses. The reported US$5 million figure is management’s estimate of additional costs, not a disclosed net loss or independently audited financial result.
Trump’s Aluminum Tariffs Climbed From 10% to 50%
The financial pressure facing Shapes Unlimited developed as the Trump administration significantly increased tariffs on imported aluminum. During Trump’s first presidency, the United States introduced a 10% tariff on many aluminum imports under Section 232 of the Trade Expansion Act. After returning to office in January 2025, Trump raised the tariff to 25%, effective March 12. On June 4, 2025, the administration increased the rate again to 50%, arguing that stronger protection was necessary to address foreign competition, excess industrial capacity, and national security concerns.
The policy was intended to make American aluminum production more competitive by increasing the cost of imported material. However, the consequences differ depending on where a company operates in the supply chain. Primary aluminum producers may benefit from reduced foreign competition, while American fabricators purchasing aluminum can face higher input costs. Subsequent changes in 2026 introduced different treatment for certain derivative products and qualified imports, meaning not every aluminum-containing product faces the same rate. For manufacturers sourcing materials domestically and internationally, the challenge extends beyond paying duties. Companies must also understand changing customs classifications, contract obligations, and the potential impact of future policy revisions.
Shipping Surcharges Have Reached More Than $6,500 Per Container
Tariffs represent only part of the problem for Shapes Unlimited. Rende told AFP that transportation surcharges have climbed above US$6,500 per shipping container on goods arriving from suppliers. These charges have become another source of financial pressure as the conflict involving Iran disrupts energy markets and international shipping. Higher fuel prices can affect ocean freight, inland trucking, and other transportation services, creating additional expenses even after manufacturers have accounted for the cost of imported materials.
The problem becomes especially difficult when businesses cannot accurately forecast how much their next shipment will cost. A manufacturer may agree to supply building products at one price, only to encounter higher transportation charges before receiving the materials needed to complete the order. These fluctuations complicate purchasing decisions, inventory management, and agreements with customers. The US$6,500 figure represents the surcharges Rende reported encountering; it should not be interpreted as a fixed charge on every container or a breakdown of the company’s entire annual freight bill. Nevertheless, it illustrates how geopolitical events can affect the financial position of a relatively specialized American manufacturer located thousands of miles from the Middle East.
American Manufacturers Cannot Pass Every Increase to Customers
One of the most difficult decisions facing Shapes Unlimited is determining how much of its rising expenses can be passed along to customers. Rende acknowledged that buyers have limits when it comes to accepting higher prices, forcing the company to absorb a substantial portion of the additional costs. For contractors and distributors purchasing fencing, window components, or other construction materials, significant price increases can affect project budgets and purchasing decisions. A manufacturer that raises prices too aggressively risks losing orders, while one that keeps prices unchanged may sacrifice profitability.
Research from the Federal Reserve Bank of New York suggests the dilemma extends across American businesses. Based on its 2025 Small Business Credit Survey, approximately 80% of surveyed goods and retail businesses passed at least some increased imported-input costs to customers, while around 60% absorbed some of those increases internally. Many businesses did both. Separate New York Fed research released in 2026 estimated that approximately 26% of tariff increases ultimately passed through to consumer prices, including indirect effects on domestically produced goods. These findings help explain why tariffs can raise consumer prices without necessarily allowing manufacturers to recover their full additional expenses.
Higher Costs Are Affecting Hiring Even as Automation Expands
The consequences at Shapes Unlimited extend beyond its purchasing department. According to AFP, Rende has paused recruitment for new positions while directing additional investment toward robotic assembly. That combination illustrates a complicated business response: the company is attempting to improve manufacturing efficiency while limiting additional employment commitments during a period of elevated costs. The hiring pause should not be confused with an announced layoff program, and the available reporting does not establish that existing workers have been replaced by machinery.
The situation is particularly notable because Shapes Unlimited has continued developing its manufacturing operations. The company says it opened a new headquarters and production facility in North Jackson during 2026, with more than 80,000 square feet of manufacturing and distribution space. Its operations include aluminum fabrication, powder coating, product assembly, inventory management, and transportation coordination. Robotic assembly can help manufacturers improve consistency and production efficiency, but it also requires capital investment and technical support. For workers hoping to enter the manufacturing sector, a recruitment pause can mean fewer immediate opportunities even when a company remains operational and invests in its facilities. The developments demonstrate that manufacturing expansion and workforce growth do not necessarily occur at the same pace.
American Aluminum Manufacturers Still Depend Heavily on Canadian Metal
The American aluminum industry faces a structural challenge that tariffs cannot quickly eliminate. The United States has substantial manufacturing and fabrication capacity, but its domestic primary aluminum production remains insufficient to meet industrial demand. In 2025, the Aluminum Association stated that roughly two-thirds of the primary aluminum used by American industry was sourced from Canada. The association emphasized that even operating all existing American smelters at full capacity would not eliminate the country’s dependence on foreign metal.
The scale of that reliance helps explain why import restrictions create difficult choices for American manufacturers. Speaking at an industry conference in September 2026, Alcoa chief financial officer Molly Beerman estimated that the United States needed approximately four million tonnes of aluminum imports annually and that Canada could supply roughly three million tonnes. Additional supplies would still be required from elsewhere. Although the exact pattern of imports has changed during the trade conflict, the underlying production gap remains important. Building new primary aluminum smelters requires substantial capital, reliable electricity supplies, and lengthy construction periods. Businesses requiring metal for current orders cannot necessarily wait for new domestic capacity to become available, making stable relationships with Canadian and other suppliers commercially significant.
Canadian Aluminum Exports Are Moving Toward European Markets
American tariffs have also changed the financial incentives facing Canadian aluminum producers. Rather than continuing to ship the same quantities south of the border, some Canadian exporters have increasingly pursued customers in Europe. Reuters reported in May 2026 that Canadian aluminum deliveries to the European Union had surged 276% in 2025 compared with 2024, exceeding 590,000 tonnes. During the same period, shipments to the United States declined approximately 25% to around two million tonnes.
The shift reflects both American trade restrictions and changing international market conditions. The conflict involving Iran disrupted aluminum production and exports from the Middle East, creating additional demand for supplies in Europe. Canadian exporters therefore gained alternative opportunities while American buyers faced elevated domestic prices. According to Alcoa’s September assessment, the U.S. Midwest aluminum premium remained high even as traders anticipated possible tariff relief. The premium stood around US$1.09 per pound, down from a June record near US$1.19. These figures show that reducing tariffs on Canadian metal alone would not necessarily eliminate America’s aluminum price disadvantage. Canadian exporters must still weigh transportation costs, regional premiums, currency movements, and available customers when deciding where to sell their products.
Ohio’s Dependence on Canadian Trade Makes the Dispute More Serious
For manufacturers in Ohio, deteriorating commercial relations with Canada are particularly consequential. According to the Office of the United States Trade Representative, Ohio exported approximately US$56.5 billion in goods worldwide in 2025. Canada accounted for US$18.3 billion, representing 32% of the state’s total merchandise exports. It was Ohio’s largest foreign market, ahead of Mexico, China, France, and the United Kingdom. The relationship supports businesses involved in transportation equipment, machinery, chemicals, fabricated metals, and other manufactured products.
These trading relationships are often more complicated than a single shipment crossing the border. Materials and components may move between American and Canadian facilities at different stages of production before becoming finished goods. Guy Coviello, president of the Youngstown Warren Regional Chamber, explained to AFP that some products cross the border several times. His organization represents approximately 3,000 members and is closely following the consequences of tariffs, the Iran conflict, and other government policies. For such businesses, changing trade rules can create uncertainty around future orders and operating costs. The concern is not limited to companies exporting finished products into Canada; it also extends to manufacturers relying on Canadian materials, customers, specialized components, or distribution relationships.
Another Ohio Manufacturer Has Delayed Expansion Into Canada
Shapes Unlimited is not the only Ohio business experiencing difficulties under the changing trade environment. AFP also spoke with Sam Miller, a manufacturer in Warren, Ohio, whose company produces kitchen and bathroom products. Miller described pressure from two directions: tariffs increase the cost of imported materials from Asia, while escalating tensions between Washington and Ottawa make selling products into Canada more difficult. The combination has created uncertainty for a business that depends on access to both international suppliers and foreign customers.
Miller had originally planned to establish a distribution facility in Canada during 2026, but progress on that project has slowed. The delay illustrates how trade disputes can influence decisions that extend beyond immediate production expenses. Establishing a foreign distribution operation requires commitments involving property, inventory, staffing, transportation, and customer relationships. If the terms of cross-border commerce remain unpredictable, companies may hesitate to undertake those investments. Miller also reported receiving refunds following the U.S. Supreme Court’s decision to invalidate certain tariffs earlier in 2026, but subsequent trade measures created additional complications. His experience demonstrates why manufacturers may struggle to make long-term plans when tariffs, refunds, and trade negotiations remain unsettled.
Court Decisions and New Tariff Incentives Add More Uncertainty
American trade policy has undergone significant legal and regulatory changes during 2026. On February 20, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act did not authorize the sweeping tariffs Trump had imposed under that statute. The decision invalidated those emergency-powers tariffs, but it did not eliminate separate duties imposed under Section 232, including aluminum and steel measures. That distinction matters because a business receiving refunds on one category of import duties could remain exposed to other tariffs.
The administration subsequently continued modifying metal-import rules. An April 2026 proclamation changed the application of Section 232 duties to various aluminum, steel, and copper products. In July, the White House established an incentive program allowing approved companies that commit to expanding American primary aluminum production to import certain quantities at reduced tariff rates. Such incentives could encourage future investment in domestic smelting, but they are not equivalent to immediate relief for every fabricator or distributor. Shapes Unlimited manufactures and distributes finished aluminum building products rather than operating a primary aluminum smelter. For businesses in that segment, the changing framework makes it particularly important to understand which provisions apply to their specific inputs and products.
The Aluminum Industry Remains Divided Over Tariff Protection
The experience of Shapes Unlimited highlights an important distinction between different parts of America’s aluminum industry. Tariffs can protect domestic producers from certain foreign competitors while increasing the expenses faced by companies that purchase and process aluminum. In June 2025, the Aluminum Association warned that a universal 50% tariff risked undermining the industry it was intended to strengthen. The organization argued that American manufacturers needed access to affordable metal and targeted enforcement against unfair trading practices rather than a uniform approach to every source of imported aluminum.
The Trump administration has defended higher tariffs as a way to strengthen domestic production, protect national security, and reduce dependence on foreign suppliers. Supporters argue that strategically important industries require stronger safeguards against subsidized overseas competition. Even critics of broad tariffs recognize the need to protect certain sensitive sectors. Coviello, the Ohio chamber president, expressed support for tariffs involving critical applications such as defense and medical products while warning against imposing unnecessary costs on goods unavailable from domestic suppliers. The disagreement is therefore not simply between supporters and opponents of American manufacturing. It concerns how to strengthen domestic industrial capacity without undermining companies that depend on internationally sourced materials.
Rising Factory Costs Become a Political Issue Ahead of November’s Elections
The financial pressure confronting Ohio manufacturers arrives during an important political period. American voters are preparing for congressional midterm elections on November 3, 2026, while trade policy, inflation, and manufacturing employment remain central economic concerns. Trump has presented tariffs as an important element of his strategy to rebuild American industry, but the experiences reported by Shapes Unlimited and other Ohio businesses illustrate some of the immediate costs. Rende has expressed frustration with the administration and questioned whether federal institutions are doing enough to provide stability.
The broader economic picture remains mixed. Some manufacturers gain protection from foreign competition, while others face higher materials prices, reduced margins, delayed investment, or weaker customer demand. Coviello told AFP that the effects among businesses represented by his chamber had been negative overall, with some firms losing customers or reducing their operations. These accounts do not establish that every American manufacturer is worse off, but they challenge the assumption that higher import tariffs automatically produce stronger domestic businesses. For Shapes Unlimited, the immediate priority is managing millions of dollars in extra expenses while continuing to serve customers and maintain efficient operations. For policymakers, the larger challenge is determining whether long-term industrial gains can justify the financial pressure emerging across American manufacturing supply chains.
