Tool Industry in 2025 – Trade Wars, Tariffs & Brand Fallout

Walk into any hardware store today and you’ll see the same brands, Milwaukee, DeWalt, Makita, etc., but behind the scenes, the tool industry is going through one of its biggest shifts in decades. Tariffs, global manufacturing, labor shortages, and trade wars are all reshaping where and how tools are made, sold, and priced.

In this article, we’ll break down what’s really happening in the tool world, how global politics are affecting your garage, and what the stock performance of tool giants like Stanley Black & Decker and Milwaukee’s parent company reveals about the future.

Most consumers assume a brand name tells you everything you need to know. But in today’s global economy, that couldn’t be further from the truth. A brand like Milwaukee feels American, but it’s owned by a Hong Kong-based company with deep manufacturing ties in China.

On the other hand, DeWalt, a classic American name, is still U.S.-based under Stanley Black & Decker, but relies on global production across Mexico, China, and the Czech Republic.

Understanding who owns what and where it’s made helps explain why some tools are more affected by tariffs, trade policies, and even political tensions than others.

When it comes to the price and availability of power tools, global trade plays a much bigger role than most people realize. The average cordless drill has parts sourced from half a dozen countries, and tariffs, raw material shortages, and shipping delays can affect every stage of that supply chain.

For example, steel and aluminum tariffs directly impact tools like hammers, pliers, and saws. Lithium and cobalt, critical for batteries, are tied to mining operations and export policies from countries like China, Chile, and the Democratic Republic of the Congo.

Many of the brands we use daily rely on Chinese factories for tool production or components, meaning any disruption in trade between the U.S. and China, whether tariffs, sanctions, or supply chain slowdowns, can delay shipments, reduce availability, or raise prices.

Tool companies have tried to diversify. You’ll see more “Made in Mexico” or “Assembled in USA” labels now, but the reality is, many of those tools still rely on imported motors, chips, and batteries.

Q: Why can’t tool brands just move all production to the U.S.?
A: Tool manufacturing depends on global supply chains. Raw materials, labor costs, and production infrastructure make it difficult (and expensive) to fully onshore production overnight. Brands would rather diversify globally than bet on one market.

COVID may be behind us, but the tool industry is still dealing with the ripple effects and they’re showing up in everything from delayed product launches to bare shelves and higher prices.

First, there’s the labor issue. Tool companies, like many manufacturers, have struggled to hire and retain skilled workers in both production and distribution. Many factories are running at reduced capacity or are automating tasks that used to be done by humans. That slows output and drives up costs.

Then there’s logistics. Shipping costs skyrocketed during the pandemic, and while they’ve come down from their peak, they’re still not back to pre-2020 levels. Delays at ports, trucking shortages, and higher fuel prices continue to affect how fast tools get to retailers and how much it costs to get them there.

Even repair and warranty departments have felt it. Fewer people working the phones or service benches means slower turnaround times. A broken drill that used to take a week to get back might now take a month, if the parts are even in stock.

The bottom line? Even if a tool is in stock, it likely took longer and cost more to get there and that’s reflected in the price tag.

While most people only look at tools from the shelf or online listing, the stock market offers another way to understand what’s going on behind the scenes. When Wall Street starts to doubt a tool company’s growth or profitability, it usually means higher costs, lower demand, or supply chain problems.

Let’s look at some of the major players in the tool space and how they’ve performed and what that performance tells us.

Stanley Black & Decker (Ticker: SWK)

• Parent of DeWalt, Craftsman, Black+Decker, and more
• Stock Price 1-2-2020 – $167.12, Current Price – $68.14
• What happened: Margins collapsed due to rising costs, over-ordering during COVID, and a pullback in consumer demand.
• Outlook: They’ve slashed headcount, refocused on cost-cutting, and are trying to stabilize. Still a major player, but fighting uphill.

Techtronic Industries (TTI, OTC: TTNDY)

• Owns Milwaukee, Ryobi, Hart
• Stock Price 1-2-2020 – $41.80, Current Price – $58.25
• What happened: TTI benefits from owning the #1 pro brand (Milwaukee) and dominant DIY lines (Ryobi, Hart). 
• Outlook: Strong product pipeline, but trade tensions and Chinese exposure are long-term risks.

Makita (OTC: MKTAY)

• Well-respected Japanese toolmaker with a global footprint
• Stock Price 1-2-2020 – $35.25, Current Price – $30.39
• What happened: Struggled to keep pace with Milwaukee and DeWalt in North America.
• Outlook: Strong in Japan and parts of Europe, but less aggressive than competitors on tech and marketing.

Stock Prices as of 6/11/2025

Pro Tip: Remember that a stock price is a reflection of confidence in their future, not today.

Ask anyone who’s been around tools for more than a few years, and they’ll tell you: something’s changed. While cordless platforms are more powerful than ever and brushless motors are becoming standard, many users have started to notice a quiet downgrade in quality, thinner plastic, stripped gears, or batteries that don’t last.

So what’s going on? Like many industries, tool manufacturers are under pressure to cut costs while innovating fast. That means balancing performance with production shortcuts. Some brands are shaving pennies off every unit with less metal, thinner housings, and reduced serviceability.

At the same time, the push toward battery platform lock-in has changed how we buy tools. The tool is no longer the product, the platform is. This has led some companies to prioritize rapid product rollout over long-term durability.

Not all quality shifts are bad. Many tools today offer more precision, faster charging, and stronger motors than ever. But as with most things, the devil’s in the details and what you don’t see often matters more than what you do.

So what does all this mean if you’re just trying to get work done, whether that’s hanging drywall, remodeling a bathroom, or wrenching in the garage? It means the tool aisle is more confusing (and expensive) than ever.

For homeowners and casual DIYers, it’s easy to get caught in the middle, tools are more advanced, but quality is hit or miss. You might pay more than you did five years ago, but not necessarily get something that lasts longer.

For pros, you’re under pressure too. Platforms are expensive, batteries keep evolving, and downtime from tool failures still costs you money. It’s not just about picking the most powerful brand, it’s about finding one that offers support, service, and parts when something breaks.

That’s why understanding who makes your tools, how global trade impacts them, and where quality is heading isn’t just interesting, it’s essential if you want to buy smart.

Who Should Do What

Homeowners

• Stick with trusted mid-tier brands
• Avoid “latest gimmick” tools
• Look for combo kits with solid warranties

DIYers

• Consider stepping up to pro-grade tools if you use them regularly
• Avoid cheap battery platforms with limited ecosystem
• Read teardown reviews before committing to a brand

Pros

• Prioritize tools with long warranties and active service networks – Hilti has the best network
• Track tool downtime, costs add up
• Invest in backup tools for critical tasks

If the last few years have shown us anything, it’s that the tool industry isn’t immune to the bigger forces shaping the world: global trade, labor, inflation, and tech. The brands that adapt will survive. The ones that don’t will get left behind, or worse, hollowed out and sold off.  Over the decades, you can see who has risen, who has fallen, and who has come back.

So what’s coming? Here are some of the trends we’re watching closely and what they might mean for your next tool purchase.

The tool world isn’t what it was ten years ago and that’s not all bad. We’re seeing smarter tools, stronger batteries, and more options than ever. But we’re also seeing rising prices, shifting ownership, and a drop in quality in some places you wouldn’t expect.

Whether you’re a homeowner picking up a drill for weekend projects or a pro who depends on your gear every day, understanding how global trade, manufacturing, and stock market forces impact tools helps you buy smarter and avoid getting burned.

At the end of the day, the name on the side of the box matters less than who’s behind it, how it’s built, and what happens when it breaks. Know your tools, know your brands, and stay ahead of the marketing.  Don’t forget to check out our Manufacturers page.

Stay tuned because I will posting more about this subject, including more stock information about these companies and what their stocks tell us about the future.