How One Company Is Navigating a New Era of Tariff Uncertainty

February 26, 2026

23 min episode · 2 min read

Chris Peterson

Episode

23 min

Read time

2 min

AI-Generated Summary

Published Feb 27, 2026

Key Takeaways

✓Tariff response strategy: When tariffs hit, Newell executed three simultaneous moves: accelerating domestic sourcing, launching overhead productivity programs, and raising consumer prices across three rounds. Being first to raise prices as a market leader caused 3-4 months of market share loss before competitors matched pricing, restoring competitive footing heading into 2026.
✓China diversification timeline: Reducing China sourcing dependency takes years, not months. Newell shifted from heavy China reliance to under 10% of US-bound goods over several years, redistributing across Vietnam, Thailand, India, Japan, and Mexico. Companies waiting for tariff pressure to begin this process face a significant lag before seeing cost relief.
✓US manufacturing economics via automation: Labor is now a smaller cost component in automated US plants, making proximity to customers the decisive advantage. Newell's Tennessee Sharpie facility produces 500 million markers annually with one operator per line versus the previous five or six, achieving roughly 80% labor reduction while maintaining the same headcount through role reskilling.
✓Reshoring feasibility filter: Not every product category suits US manufacturing. Newell targets injection-molded parts and automatable assembly while avoiding sewing-intensive products and highly regulated categories like Graco car seats, which require crash-test certified Chinese supply chains built over decades. Applying this filter before committing capital prevents costly failed reshoring attempts.
✓Tariff refund pursuit: Companies that directly paid IEEPA tariffs now ruled invalid by the Supreme Court should evaluate refund eligibility. Newell, having paid the substantial majority of its $174 million under IEEPA authority, is actively monitoring lower court proceedings on refund processes and plans to pursue claims, with recovered funds targeted toward sharpening consumer pricing.

What It Covers

Newell Brands CEO Chris Peterson explains how the company managing brands like Sharpie, Rubbermaid, and Crock-Pot navigated $174 million in 2024 tariff costs, shifted sourcing away from China to under 10%, and rebuilt US manufacturing through automation to reach 57% domestic production.

Key Questions Answered

•Tariff response strategy: When tariffs hit, Newell executed three simultaneous moves: accelerating domestic sourcing, launching overhead productivity programs, and raising consumer prices across three rounds. Being first to raise prices as a market leader caused 3-4 months of market share loss before competitors matched pricing, restoring competitive footing heading into 2026.
•China diversification timeline: Reducing China sourcing dependency takes years, not months. Newell shifted from heavy China reliance to under 10% of US-bound goods over several years, redistributing across Vietnam, Thailand, India, Japan, and Mexico. Companies waiting for tariff pressure to begin this process face a significant lag before seeing cost relief.
•US manufacturing economics via automation: Labor is now a smaller cost component in automated US plants, making proximity to customers the decisive advantage. Newell's Tennessee Sharpie facility produces 500 million markers annually with one operator per line versus the previous five or six, achieving roughly 80% labor reduction while maintaining the same headcount through role reskilling.
•Reshoring feasibility filter: Not every product category suits US manufacturing. Newell targets injection-molded parts and automatable assembly while avoiding sewing-intensive products and highly regulated categories like Graco car seats, which require crash-test certified Chinese supply chains built over decades. Applying this filter before committing capital prevents costly failed reshoring attempts.
•Tariff refund pursuit: Companies that directly paid IEEPA tariffs now ruled invalid by the Supreme Court should evaluate refund eligibility. Newell, having paid the substantial majority of its $174 million under IEEPA authority, is actively monitoring lower court proceedings on refund processes and plans to pursue claims, with recovered funds targeted toward sharpening consumer pricing.

Notable Moment

Peterson revealed that automating the Maryville, Tennessee Sharpie plant did not shrink the workforce. Instead, workers previously doing manual packing labor were retrained as automation engineers managing the machines, preserving jobs while fundamentally upgrading the skill level and career trajectory of every role in the facility.

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