Freedman Seating Co., a notable Chicago manufacturer, is feeling the adverse effects of sweeping tariffs imposed by President Donald Trump, exemplifying the vulnerabilities faced by U.S. factories and the economy at large.
The company, located in the Austin neighborhood, has witnessed immense challenges as it strives to maintain its supply chain amidst rising import tariffs that can reach as high as 145% on goods from China.
CEO Craig Freedman expressed concern, stating, “I’ve never seen a supply shock like this in my working lifetime. We are scrambling and running around doing everything we can to keep our supply chain rolling in.”
With a proud history rooted in Chicago since its founding in 1893, Freedman Seating has evolved from making seats for horse-drawn carriages to producing half a million to three-quarters of a million seats annually for various forms of transportation, including buses, trains, and delivery trucks.
Freedman reported that the tariffs intended to revive American manufacturing instead place tremendous strain on his company and its suppliers, increasing costs dramatically.
“They are going to grind certain aspects of our business to a halt,” he lamented.
The repercussions are being felt throughout the business, as sales have significantly dropped, causing Freedman to declare that the company is effectively in a recession.
Rising orders from customers within the bus and truck sectors are also slowing down, as economic uncertainty takes hold. According to Freedman, “I’m afraid that we haven’t seen the full effects yet. Inflation is going to rear its ugly head again.”
Economic forecasts echo these concerns. Research from the Yale University Budget Lab suggests that the tariffs announced since Trump took office could reduce U.S. economic growth by 1.1 percentage points in the current year.
Furthermore, Goldman Sachs has projected a 45% probability of a recession hitting the U.S. this year.
Although Trump declared a temporary pause on some tariffs affecting 60 nations, Freedman described this as a state of “purgatory,” providing no real relief as businesses contend with erratic trade policies.
The unpredictable nature of Trump’s tariffs has led to significant turmoil in stock markets, characterized by historic fluctuations and declines.
Freedman’s products cater primarily to the domestic market, with some exported to Canada. Despite being a Chicago-based manufacturer, the company relies on numerous international suppliers for components, particularly from countries like Germany and Lithuania.
“How do you expect anybody to be able to reshore that overnight?” Freedman questioned, highlighting the interconnected nature of modern manufacturing.
Even among U.S. vendors, many still source parts from other countries. For instance, upholstery fabrics come from Taiwan, Colombia, and additional nations.
Freedman emphasized the difficulty in securing certain supplies domestically, stating, “There are few, if any, seat belt components made in the U.S. The company has already seen double-digit cost increases on many items, including seat belts, primarily due to tariffs.”
He criticized the tariffs as being implemented without caution, asserting that they have undermined a global trading system built over the last 70 years. Freedman remarked, “There are places where tariffs make sense, but not in the way this was done. They’re just arbitrary and damaging to our economy.”
Compounding the challenges, the company faces incoming shipments of components for which they cannot cease payments, risking a financial blow with potential costs skyrocketing by 150% for parts sourced in China.
Operating on narrow margins makes Freedman Seating particularly susceptible to the harsh realities of fluctuating tariffs that can range dramatically.
Freedman pointedly stated, “Who loses out? We do. You will see that in industry after industry.”
Despite the challenging landscape, Freedman Seating’s factory remains operational and strives to fulfill a backlog of orders.
The firm has not yet resorted to laying off workers, as the majority of their 700 employees, around 75%, reside in nearby under-resourced neighborhoods.
“Anything that affects us affects the community,” Freedman asserted, emphasizing the importance of their operations to the local population.
Historically, the manufacturing sector in Chicago has seen a decline, with employment numbers dropping from over 500,000 jobs in 1960 to current figures. Despite these declines, the manufacturing sector in greater Chicago remains a major player, generating approximately $103 billion in output and employing over 418,000 individuals across 12,000 businesses.
Recent reports indicated that from 2022 to 2023, Chicago created 1,160 manufacturing-related jobs, underscoring a sector that still holds intrinsic value in the economy.
However, David Boulay, president of the Illinois Manufacturing Excellence Center, noted that while manufacturing experienced a boom post-pandemic, the momentum has recently softened, attributed to rising interest rates.
Mark Denzler, CEO of the Illinois Manufacturers’ Association, called attention to the critical role that trade plays in Illinois’ economy, asserting that tariffs could be useful when targeting specific issues like product dumping or intellectual property theft, but blanket tariffs can raise costs and create instability for businesses and consumers alike.
Denzler added, “Businesses also crave stability and predictability, so tariffs being turned on and off make planning difficult.”
Freedman Seating’s situation reflects broader trends, where the global trade war threatens to stifle progress made in revitalizing local communities and businesses.
The company recently invested $4 million in upgrading its Austin facility, anticipating benefits from the Illinois Department of Commerce and Economic Opportunity’s incentive program, which promised tax credits in exchange for job retention and creation.
Yet as economic challenges mount, the company has opted to slow the recruitment process, leaving uncertainty for job seekers in the West Side community.
Freedman shared a vision for the future of the company and the community, stating, “We have been a mainstay of the community for over 25 years. We offer good opportunities for people to earn a paycheck and new skills.”
As the community begins to bounce back, Freedman’s legacy is deeply intertwined with the neighborhood’s resurgence.
But the ongoing turbulent trade environment poses a daunting threat to this revival, risking setbacks for both the company and the community it supports.
image source from：https://chicago.suntimes.com/money/2025/04/18/chicago-manufacturer-freedman-seating-reels-devastating-tariffs
