Podcast Summary: "How One Company Is Navigating a New Era of Tariff Uncertainty"
The Journal. — The Wall Street Journal & Spotify Studios
Hosts: Jessica Mendoza & Ryan Knutson
Guest: Chris Peters (CEO of Newell Brands)
Date: February 26, 2026
Episode Overview
This episode explores how Newell Brands—a conglomerate behind well-known consumer products like Sharpie, Rubbermaid, and Papermate—is responding to the latest twists in U.S. tariff policy. Jessica Mendoza sits down with CEO Chris Peters to discuss the company's massive tariff payments, their shifting manufacturing strategy, efforts to reshore production (highlighting Sharpie), and the real-world complexities of making goods in America. The discussion also touches on automation, job creation, and even the story behind President Trump’s famed custom Sharpie.
Key Discussion Points & Insights
1. The Tariff Whiplash: Supreme Court Ruling & New Policies
- Backdrop: Newell Brands was hit with $170+ million in tariffs last year, much of it under the now-invalidated IEPA tariffs.
- Recent News: The Supreme Court ruled many global tariffs illegal; the President promptly announced a new 15% tariff set.
- Business Uncertainty:
- Chris Peters shares the confusion and uncertainty gripping manufacturers in this environment.
- Quote:
"We're going to have to wait and see. It's unclear exactly how all of this is going to play out." (Chris Peters, 01:04)
- Refund prospects remain murky and will likely be decided in lower courts.
- Agility Required:
- Peters emphasizes that Newell must stay 'agile' amid evolving tariff rates.
2. Where Newell’s Products Are Made & Why
- Manufacturing Footprint:
- 57% of Newell’s U.S. goods are made domestically (up from 45%).
- Heavy shift away from China to Southeast Asia and Latin America over recent years.
- Challenges to U.S. Sourcing:
- Some products (e.g., high-safety car seats by Graco, sewn goods) difficult to reshore due to regulation, supplier networks, or skill shortages.
- Quote:
“Most car seats that are sophisticated... are all made in China. We work with a partner there... It would take a lot of investment and a lot of time to do that.” (Chris Peters, 05:21)
- Advantages of Domestic Production:
- Major reduction in lead times (from 70+ days to as little as 7-10 days).
- “The cycle time advantage of being in the U.S. if you’re serving the U.S. consumer is a real thing.” (Chris Peters, 05:44)
3. Coping With Tariffs: Three-Pronged Response
- Strategy:
- Shift sourcing where possible, including moves to U.S. and other lower-tariff countries.
- Boost productivity and reduce overhead to offset tariff impact.
- Raise prices—leading the market but at a cost to short-term market share.
- Market Impact:
- Short-term market share erosion as some competitors delayed price increases, but parity now restored.
- Quote:
"We probably raised price first. Some of our competitors didn't raise price as fast as we did. And so we lost a little bit of market share for three or four months.” (Chris Peters, 08:22)
4. Refund Prospects and Pricing Implications
- Peters’ Stance:
- Open to pursuing substantial tariff refunds if courts allow.
- If Newell secures refunds:
"We'll look to get even sharper on our consumer pricing on some of our goods." (Chris Peters, 10:41)
5. The Sharpie Story: Reshoring and Automation
- Case Study:
- Sharpie manufacturing moved almost entirely back to Maryville, Tennessee.
- Investment in automation: plant went from manual, dated operations to highly advanced, with one operator per line instead of five or six.
- Quote:
"If you walked into the plant back then... it would have looked like a plant you might have seen in the 1990s or the 1980s even." (Chris Peters, 15:44)
- Why Sharpie?:
- Its strong U.S. popularity, not ease of manufacturing, drove the decision.
- Quote:
"Sharpie is probably the brand that has the most desire from a consumer standpoint." (Chris Peters, 14:41)
- Plant Transformation:
- Today, 0.5 billion Sharpies/year, 5 of 6 components made in-house, major upskilling for local workers.
- Memorable Detail:
Transforming plant jobs from basic assembly to automation engineers—"which is a great career path, actually." (Chris Peters, 16:40)
6. Automation vs. Classic Job Growth
- Job Impact:
- While automation didn't increase Maryville plant headcount, it protected jobs that could have been lost and raised job quality.
- Quote:
"If we hadn't have invested in this, the job count would have shrunk... But the jobs there are much higher caliber jobs than what they were." (Chris Peters, 17:55)
- Broader Implication:
- Peters says the U.S. is well-positioned for manufacturing that can be automated but less so for labor-intensive processes like sewing.
7. What’s Still Tough to Reshore
- Product Restrictions:
- Components like Sharpie’s felt tip remain sourced from Japan due to high supplier quality and longstanding relationships.
- Quote:
"The strength of our Japanese supplier and the relationship... has that one not on the top of our priority list." (Chris Peters, 19:04)
8. The Reality of “Bring Manufacturing Back”
- Peters’ View:
- Automation means U.S. can now compete on more manufactured goods, especially those with moderate labor requirements and high shipping sensitivity.
- Quote:
"Labor is a much smaller component of the cost... I’m of the opinion that now is actually a pretty good time for U.S. manufacturing to come back." (Chris Peters, 20:40)
- But:
- Apparel and similar sectors unlikely to return in large scale.
9. Presidential Sharpies—And Who Gets One
- Fun Fact:
- President Trump uses a custom "Super Sharpie" (double size) to sign executive orders.
- Entire lower right-hand drawer of the Resolute desk rumored to be filled with Sharpies.
- Newell doesn’t handle the customization—another party does.
- Quote:
"We do manufacture it, and I haven't seen it yet, but purportedly... the entire thing is filled with Sharpies." (Chris Peters, 22:34)
Memorable Quotes & Timestamps
- “We’re going to have to wait and see. It’s unclear exactly how all of this is going to play out.” — Chris Peters (01:04)
- “Most car seats that are sophisticated... are all made in China... that business would be difficult to move.” — Chris Peters (05:21)
- “We probably raised price first. Some of our competitors didn’t raise price as fast as we did... we lost a little bit of market share for three or four months.” — Chris Peters (08:22)
- “If you walked into the plant back then... it would have looked like a plant you might have seen in the 1990s or the 1980s even.” — Chris Peters (15:44)
- “We make about a half a billion Sharpie markers a year... and it only takes one person to operate the line instead of five or six.” — Chris Peters (16:27)
- “Our market shares on Sharpie are the highest they’ve been... Sharpie has been a fantastic success story.” — Chris Peters (19:49)
- “Labor is a much smaller component of the cost... I’m of the opinion that now is actually a pretty good time for U.S. manufacturing to come back.” — Chris Peters (20:40)
- “We do manufacture [the Super Sharpie]... purportedly in the lower right-hand drawer of the Resolute desk, the entire thing is filled with Sharpies.” — Chris Peters (22:34)
Important Segments/Timestamps
- [00:06] — Introduction to Newell Brands & Tariff landscape
- [04:05] — Overview of Newell's profits and manufacturing distribution
- [05:21] — Discussion on moving manufacturing out of China; product-specific reshoring challenges
- [07:44] — Impact of tariffs on business decisions and pricing
- [10:00] — Prospects and considerations for seeking tariff refunds
- [13:38] — Sharpie reshoring story: decision process and plant overhaul
- [17:55] — Automation’s impact on job creation and security
- [19:49] — Metrics of Sharpie’s reshoring success and continued growth
- [20:40] — Overall lessons about bringing manufacturing back to the U.S.
- [22:16] — The President’s Super Sharpie and customization tidbits
Conclusion & Takeaways
This episode lays bare the messy complexity of tariff-driven industrial policy in modern America. Chris Peters’ account of Newell Brands’ response to unpredictable tariffs underscores both the flexibility required of big manufacturers and the opportunities and caveats of economic nationalism. Through their Sharpie case, Newell shows that with automation and investment, U.S. manufacturing can be globally competitive, but it won’t spell an unqualified jobs bonanza—many roles are changing, not multiplying. As the episode closes, it’s clear that for companies navigating the whiplash of trade policy, survival means a blend of agility, automation, and carefully targeted reshoring.
