Global tariffs slow Bucks County company

Tariffs imposed by the U.S. on other nations are impacting businesses in Bucks County, as a local electrochemical instrumentation firm is feeling the effects on its operations.

Gamry Instruments, which is based in Warminster Township, develops and manufactures products ranging from glucose sensors to systems that test corrosion properties for U.S. Navy ship hulls. He noted his company’s products are found in or play a role in devices across the consumer and industrial market.

Co-founder Max Yaffe said many of the company’s products are purchased by businesses, governments, health care providers, and research universities worldwide.

What is a tariff? Tariffs are fees a country imposes on imported goods and services. They are often to increase the price of foreign products or generate government revenue. Many economists view them as taxes on consumers, who bear the cost passed on by businesses.

Gamry Instruments employs roughly 65 people and has offices in China and Italy. It works with many vendors around the country and world.

The company, according to Yaffee, exports its products around North America and around the globe, including to China and Europe. About 40 percent of the company’s sales are in the U.S., with the rest being around the globe.

While the company has not had to make major cuts due to the tariffs, business has slowed and some costs have increased, according to Yaffe and Greg Martinchek, who serves as the company president.

    Credit: Tom Sofield/LevittownNow.com
  

Yaffe said sales are down 30 percent and believes things will get worse.

Chris Beasley, the firm’s sales and marketing director, said the company has paused operations in China due to tariffs.

“It’s gone overnight because of the tariffs,” Beasley said.

Explaining the challenge, Beasley said customers are going to buy from competitors due to tariffs. The longer the tariffs impact business means that business will be harder to win back.

Gamry Instruments officials noted that Chinese and European competitors have been gaining market share in recent years before tariffs.

Despite much of its work being done in the U.S., Gamry Instruments imports some parts for its products from various countries.

Yaffe estimated that as much as 40 percent of the 2,000 components in their printed circuit boards are sourced from China or other countries.

Yaffe and Martinchek, who founded the company in 1989 and have benefited from the region’s skilled workforce, voiced worries about the long-term impact of tariffs on the firm.

“We have competitors all around the world, and they don’t have to suffer through this,” Yaffe said of the tariffs, noting his concern is not about politics.

Last month, Bucks County Commissioner Bob Harvie, a Democrat running for Congress, toured Gamry Instruments’ headquarters and met with its founders and staff.

    Gamry officials with Commissioner Bob Harvie. Credit: Tom Sofield/LevittownNow.com
  

The commissioners said he has spoken with other Bucks County businesses affected by tariffs and their downstream consequences.

Harvie stated he is not against all tariffs and believes they can be used surgically to protect American interests. However, he warned that broad tariffs will harm businesses and residents.

Despite President Donald Trump administration’s announcements of several trade deals and frameworks for deals, higher-than-previous tariffs remain in place with nations globally, including top trading partners and close allies, including Canada.

Trump has characterized tariffs and restrictions imposed by other countries as unfair, while believing tariff revenue will help fund the federal government budget.

An analysis by The Budget Lab at Yale University estimated the typical household will lose $2,400 in 2025 due to tariffs.

The lab found that tariffs will bring in $2.2 trillion in tariff revenues from 2026 to 2035.

The Census Bureau’s most recent survey of 200,000 American businesses indicated companies are paying more for products and services and are increasing prices for customers.

Neil Bradley, executive vice president at the U.S. Chamber of Commerce, recently wrote that tariffs are causing small businesses to raise prices for consumers.

In addition to tariff uncertainty, Gamry Instruments has also seen business slow and orders halted due to sudden federal cuts to research at universities and colleges.

    Credit: Tom Sofield/LevittownNow.com
  

Jacob Ketter, a chemist who works directly with clients, said those cuts directly impact Gamry Instruments and he has heard similar from his customers.

Staff at Gamry Instruments also shared concerns about the high cost of housing in the Philadelphia region.

Harvie said he and county officials share these concerns, noting the launch of programs to assist first-time homeowners and work with people needing housing.