Montana Knife Company is exactly the kind of American business that President Trump claims to support. The brands founder, Josh Smith, founded the company in his garage during the pandemic, with a dream to sell quality knives made in the U.S. Smiths business grew like a rocket ship during the Biden administration, though Smith still described the former presidents economic policies as horrendous.

　　Smith adamantly supported Trump during the 2024 campaign. But, with Trumps trade war causing higher taxes on imported goods and general confusion for U.S. businesses, Smith slammed the presidents tariff policies in a lengthy video explaining his companys situation.

　　Punish the guy making the knives in Taiwan and in China. Im fine with that, Smith said in the latest episode of his podcast, The Josh Smith Show. But Im the guy making knives in America, Donald Trump. Dont punish me for making knives in America by tariffing my equipment and my steel supply. Tariff the guy thats doing absolutely jack shit in America. Thats called nuance in your policies, and thats what Im asking for.

　　Several outdoor brands have issued statements in recent weeks pleading with lawmakers for an end to the tariffs. But few of them illuminate the tariffs negative impact on U.S. businesses better than Montana Knife Company (MKC).

　　Play Tariffs Impede U.S. Manufacturing The reasoning behind Trumps trade war is simple: Increase taxes on imports to encourage U.S. businesses to bring back manufacturing jobs. For businesses already making products in the U.S., those increased taxes (also called tariffs) often result in increased prices for products made overseas. That, in turn, is meant to encourage American consumers to buy U.S.-made products.

　　But, according to Smith, thats not whats happening, and its because the Trump administrations implementation has been ill-considered.

　　MKC makes its knives in the U.S., but must rely on imported steel. Smith would prefer to buy American-made steel, but New York–based Crucible Industries — the countrys last major steelmaker — declared bankruptcy in December. It was later bought for $17.3 million by French company Erasteel.

　　So, for the moment, Smith is closely watching the recent deal that Trump made with the European Union (EU). That resulted in 15% tariffs on most European imports, with several major exceptions. Steel is one of them.

　　All steel imports from the EU will continue to receive the 50% tariff that Trump levied last month — a significant cost increase for small businesses like MKC.

　　Eventually, EU steel and aluminum makers will be granted a quota system with minimal or zero tariffs to replace Trumps 50% import tariffs, Reuters reported Tuesday. However, that system has yet to be finalized. In the meantime, the tariff poses another obstacle for MKCs plans for continued growth.

　　Every other material we use is sourced in the U.S., Smith told GearJunkie. Unfortunately, our steel manufacturer went bankrupt last November, and it was purchased by a European company. The supply of the highest quality knife steel is no longer produced in America.”

　　Trumps tariffs may add hundreds of thousands of dollars to the cost of finishing MKCs new facility; (photo/MKC) Impacts on MKCs New Facility MKCs knives are very popular. The brands limited-edition drops, smart marketing, and endorsements from celebrities like Joe Rogan have quickly made them one of the countrys most visible knife brands.

　　That rapid growth led Smith to start construction in October 2024 of a new 51,000-square-foot facility right outside of Missoula, Mont. Plans for the building include corporate offices, a coffee shop, and a viewing area to observe the knife-making process. By expanding from the brands previous site, Smith hopes to create jobs for 150-200 people.

　　It’s going to be a place where people can walk in and witness that the American dream is still alive and real, Smith told a local news station last year after breaking ground for the new facility.

　　But Trumps tariffs have created a major problem for Smiths planned expansion. He still needs to buy large machinery thats only available overseas, like a bevel grinder, which refines the sharpness and shape of blades. Without tariffs, he was looking at a $400,000 price tag to import one from Germany. But Trumps 50% tariffs dont exempt machinery, so now Smith is looking at potentially paying $600,000.

　　Its another example of the lack of nuance in Trumps tariff policies, Smith said.

　　“A tariff of any amount puts an additional burden on U.S. manufacturers that rely on materials and specialized machinery sourced from other countries, Smith told GearJunkie. The extra expense for tariffs will likely just slow down how much labor we can hire and how aggressively we can speculate on buying extra materials, which caps our potential growth.

　　MKCs knives, like the Traditions Collection seen here, usually sell out quickly; (photo/MKC) The Only Certainty? Unpredictability When asked about the impact of tariffs, outdoor business leaders almost invariably say the same thing: Its impossible to make decisions in an economic environment defined by instability.

　　During his first 6 months in office, Trump has changed tariff policies many times, and without informing American business leaders what to expect. The latest deal with the EU is another example: Even after a deal is struck, many of the details remain unclear, leaving business owners ignorant about what is actually happening.

　　Any modern brand plans its financials at least 1 to 2 years in advance, said Kent Ebersole, president of the Outdoor Industry Association.

　　Sixty percent of the people in D.C. like the outdoors. We have friends on both sides of the aisle, Ebersole told GearJunkie. But the chaos and inconsistency with which this is delivered, it makes it hard to plan. Not just for this year, but next year — and that’s the hardest thing.

　　As the trade war drags on, more outdoor brands have taken MKCs 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 Trumps tariffs undermine the heart of Idahos 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.

　　In other words, Trumps supposed aim to promote American manufacturing is actually doing the opposite, Smith said. The MKC founder is worried about outdoor brands going out of business, especially if the tariffs continue into the end of the year.

　　I dont need Donald Trumps help, Smith said in his podcast. I just need him to stay out of my way.

　　Old-School Looks, Next-Gen Performance: MKC Traditions Knife DropMontana Knife Company’s Traditions Collection returns May 29 with classic models, ironwood handles, and the all-new Jackstone. Don’t miss this knife drop. Read more