🔒Tariff volatility disrupts CT manufacturer’s sales despite higher earnings

Tariff volatility and shifting federal trade policy disrupted customer orders at Acme United Corp. in 2025, tempering sales growth even as the Shelton-based maker of cutting tools and first-aid products reported higher annual earnings. In its fourth-quarter earnings announcement, Acme said tariffs imposed in April and adjusted multiple times throughout the year created confusion for customers, particularly large retailers, some of which delayed or canceled promotions as costs fluctuated. “Our team successfully navigated customer uncertainty and increased costs due to tariffs during 2025,” Chairman and CEO Walter C. Johnsen said in the earnings release, adding that the abrupt policy shifts affected order patterns and the timing of sales. For the fourth quarter ended Dec. 31, Acme reported net sales of $47.5 million, up about 3% from the year-earlier period. Net income was $1.9 million, or 46 cents per diluted share, compared with $1.7 million, or 41 cents per diluted share, in the fourth quarter of 2024. For the full year, net sales totaled $196.5 million, up roughly 1% from 2024. Net income for the year was $10.2 million, or $2.49 per diluted share, compared with $10.0 million, or $2.45 per diluted share, in 2024. U.S. segment sales were flat in the fourth quarter and declined 1% for the year. The company said sales of school and office products were lower mainly due to the cancellation of customer orders resulting from tariff uncertainty, while first-aid and medical product sales were strong. European net sales increased 31% in the fourth quarter and 8% for the year in U.S. dollars. Canadian sales rose 14% in both the quarter and full year. The trade environment remains unsettled for Acme and other U.S. companies. Last week, the U.S. Supreme Court ruled that the Trump administration lacked authority under the International Emergency Economic Powers Act to impose certain broad tariffs, raising questions about the status of some duties collected over the past year. President Donald Trump said his administration would explore other statutory options to maintain tariffs aimed at protecting domestic industries, signaling that further policy shifts could follow. In its forward-looking statements, Acme cited international trade policies — including the imposition of new tariffs or changes in tariff rates — as potential risks that could affect demand and its competitive position. Acme United employs about 600 people and distributes products in the United States and internationally.