How One Company Is Navigating a New Era of Tariff Uncertainty - The Journal. Recap

Podcast: The Journal.

Published: 2026-02-26

Duration: 23 min

Summary

Newell Brands is grappling with the complexities of navigating tariffs while shifting production back to the U.S. under CEO Chris Peterson. The company faces financial challenges but is adapting its manufacturing strategy in response to changing tariff regulations.

What Happened

In this episode, Jessica Mendoza speaks with Chris Peterson, the CEO of Newell Brands, a consumer goods conglomerate that owns well-known brands like Crockpot and Rubbermaid. Peterson shares that Newell paid over $170 million in tariffs last year, a financial strain exacerbated by recent changes in U.S. tariff policy. Following a Supreme Court ruling declaring many global tariffs illegal, Peterson discusses the uncertainty this creates for their operations and whether they might be entitled to tariff refunds based on the ruling.

Newell has been working to adapt to this turbulent tariff landscape by increasing domestic manufacturing. Peterson highlights the shift of their Sharpie brand from overseas production to being almost entirely made in the U.S. He explains that while they aim to bring more production back home, some products, like car seats from their Graco brand, remain challenging to relocate due to complex manufacturing requirements and existing supply chains in China. The company has diversified its overseas manufacturing to countries like Vietnam and Mexico, reducing their reliance on China to less than 10% of their business.

Peterson outlines the strategies Newell employed in response to tariffs, including changing sourcing locations, enhancing productivity, and raising consumer prices. He notes that while these price increases initially led to a loss of market share, the company has since regained its footing. As they look ahead, Peterson emphasizes the need for agility in adjusting to new tariff regulations and considers pursuing refunds for tariffs deemed invalid by the Supreme Court, highlighting the ongoing challenges and opportunities in the evolving trade landscape.

Key Insights

• Newell Brands is shifting its manufacturing back to the U.S. to reduce reliance on overseas production and improve responsiveness to consumer demand.
• The company has diversified its manufacturing base, sourcing from various countries in Southeast Asia and Latin America to mitigate tariff impacts.
• Peterson emphasizes the importance of agility in navigating the uncertain tariff landscape, indicating that Newell must adapt to changing regulations.
• Newell is considering pursuing refunds for tariffs ruled invalid, which could significantly impact their financial situation.