Shelton Manufacturer Acme United Sees Earnings Rise Despite Tariff Disruptions

Tariff volatility and shifting federal trade policy disrupted customer orders at Shelton-based Acme United Corp. throughout 2025, according to the company’s fourth-quarter earnings report, even as the cutting tools and first-aid products manufacturer posted higher annual earnings.

The manufacturer said tariffs imposed in April and adjusted multiple times during the year created confusion for customers, particularly large retailers, some of which delayed or canceled promotions as costs fluctuated, according to the earnings announcement.

“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. Johnsen added 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, according to company records. Net income reached $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.

The company’s full-year performance showed net sales totaling $196.5 million, up roughly 1% from 2024, according to the earnings report. 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.

The tariff uncertainty hit different product lines unevenly. U.S. segment sales remained flat in the fourth quarter and declined 1% for the year, according to company data. The company attributed lower sales of school and office products mainly to customer order cancellations resulting from tariff uncertainty, while first-aid and medical product sales performed strongly.

International operations provided some relief from domestic challenges. European net sales increased 31% in the fourth quarter and 8% for the year in U.S. dollars, according to the earnings report. Canadian sales rose 14% in both the quarter and full year.

The trade environment remains uncertain 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, according to court records.

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, according to administration statements.

The ongoing trade policy uncertainty continues to pose challenges for Connecticut manufacturers like Acme United. In its forward-looking statements, the company 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, according to the earnings report.

Acme United employs about 600 people and distributes products in the United States and internationally, according to company information. The manufacturer’s experience reflects broader challenges facing Connecticut’s manufacturing sector as companies navigate an unpredictable trade policy environment.

The company’s ability to post higher earnings despite sales disruptions demonstrates the resilience of established Connecticut manufacturers, though the ongoing policy uncertainty suggests continued challenges ahead for the state’s industrial sector.