Milwaukee Model Railroad Equipment Company Concerned About Tariffs on China

Walthers, a 93-year-old Milwaukee model railroad company, faces difficulties due to 145% tariffs on Chinese imports. CEO Stacey Walthers Naffah seeks solutions to sustain the business.

Key Points

• A 93-year-old Milwaukee model railroad company, led by Stacey Walthers Naffah, faces challenges due to 145% tariffs on Chinese imports, threatening its centennial milestone. Naffah emphasizes the urgent need for a resolution, noting significant price hikes on products, like a locomotive rising from $319 to $458.

• Despite the temporary tariff pause for some countries, China remains excluded, complicating preparations for the holiday season. Naffah highlights the importance of a potential exclusion process and acknowledges the challenge of transitioning to domestic manufacturing, which demands time and investment.

• Naffah, with a background in advertising and sales, is committed to steering the family business through these difficulties. She underscores the model train industry’s value in promoting STEAM education. TMJ4 News invites community engagement and provides streaming options for local news.

The Milwaukee-based model railroad company, Walthers, a family-owned business for 93 years, is confronting severe challenges due to the tariffs imposed by President Trump on Chinese products. With tariffs soaring to 145%, CEO Stacey Walthers Naffah is striving to navigate these turbulent economic conditions. The tariffs dramatically increase the cost of importing products, directly affecting the company’s pricing strategies.

Despite a 90-day pause on tariff hikes for some countries, China remains unaffected, intensifying the pressure on businesses like Walthers. The company has already had to increase product prices to offset costs, but if the tariffs persist, further price hikes might be inevitable. For instance, a locomotive initially priced at $319 could cost consumers $458 due to these financial pressures.

This situation is particularly urgent as the holiday shopping season approaches, crucial for the hobby industry. Naffah advocates for an exclusion similar to one enacted in 2019, focusing on policy impacts rather than the political debate surrounding tariffs. While she supports the idea of reviving domestic manufacturing, she acknowledges it requires both time and investment.

Currently, not only China but also Vietnam and Taiwan contribute to Walthers’ supply chain, with some U.S.-made items. Naffah, who previously built a career in advertising and sales, is committed to guiding her family business through these challenges, aiming to lead the company to its centennial and beyond.

Moreover, she stresses the importance of the model train and hobby industry in promoting STEAM education—Science, Technology, Engineering, Arts, and Mathematics—for children, highlighting its broader economic and educational value. This narrative, reported by Charles Benson and verified for fairness, underscores the multifaceted impact of tariff policies on American businesses and industries.

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