The Hidden Costs of Global Trade
By Robert B. Peuterbaugh
President, Joint Production Technology
Joint Production Technology (JPT) (www.jptonline.com) is a U.S.-based manufacturer of precision motion-actuated tooling for automotive, industrial, and aerospace applications. With decades of experience supplying Tier 1 and OEM production lines, JPT operates behind the scenes as a private-label partner to some of the most advanced machining environments in the world. This white paper explores the hidden costs of global trade—from structural price disadvantages to overlooked national security risks—and offers a manufacturing-grounded perspective on restoring U.S. competitiveness.
An exploration of the hidden costs of global trade reveals that the consequences extend well beyond price tags and environmental metrics. From structural economic imbalances to weakened supply chain resilience, these less visible costs are reshaping the industrial base—and putting long-term competitiveness at risk.
What happens when tariffs alone aren’t enough?
This comprehensive white paper explores the deep structural disadvantages that have eroded America’s manufacturing base—many of which remain misunderstood or ignored in public discourse. The hidden costs associated with global trade often add to these challenges.
From foreign VAT rebates and IP theft to regulatory arbitrage and training cost gaps, global competitors often hold a 100%+ cost advantage over U.S. firms before the first order is placed. Tariffs, while often mischaracterized, can serve as a strategic lever—but only when paired with reinvestment and structural reforms.
What’s Inside:
- Why structural costs—not tariffs—are the true driver of global price gaps
- How foreign exporters legally bypass U.S. trade barriers through VAT rebates and subsidies
- How supply chain vulnerabilities now pose direct risks to national security and economic sovereignty
- The environmental toll of offshoring: emissions, enforcement gaps, and energy inefficiencies
- A sector-by-sector breakdown of cost disadvantages in semiconductors, rare earths, pharmaceuticals, and machine tools
- Why small and mid-size manufacturers bear the greatest burden under today’s trade architecture
- A practical framework for combining tariffs, tax relief, R&D, and reshoring incentives
- How the myth of “free trade” hides real global expenses and competitive distortions
- Legal foundations for using WTO-compliant trade tools, including national security carve-outs
Final Thoughts:
Global trade has always involved trade-offs—but today, the imbalance is structural, not cyclical. This white paper aims to reframe the discussion and offer actionable insights for those shaping policy, leading industry, or defending U.S. competitiveness.
Whether you’re on the shop floor, in the boardroom, or on Capitol Hill, understanding the hidden costs of global trade is a step toward meaningful reform.
Call to Action:
Who Should Read This:
- Manufacturing and industry leaders
- MEP Centers and policy advisors
- Lawmakers and staff focused on economic competitiveness
- Researchers tracking reshoring, supply chains, or trade policy
- For anyone ready to move beyond slogans and dig into the real challenges facing American industry, particularly the concealed expenses surrounding global trade.
About the Author
Robert B. Peuterbaugh is the President of Joint Production Technology and a former Vice Chair of a leading MEP Center. With four decades in precision manufacturing and national industry roles, his perspective bridges the boardroom, shop floor, and policy space.
About Joint Production Technology (JPT)
Joint Production Technology is a U.S.-based manufacturer specializing in precision motion-actuated tooling designed and built to customer specification. As a behind-the-scenes partner to Tier 1 and OEM production lines, JPT provides private-label cutting tools and engineered solutions for some of the most demanding machining environments in the world.
The insights shared in this white paper are shaped by more than 30 years of firsthand experience navigating global supply chains, working with high-precision manufacturers, and adapting to the structural cost pressures reshaping American industry.
Industries We Serve
✔ Automotive
✔ Heavy Truck & Off-Highway OEMs
✔ Tier 1-2 Parts Suppliers (Transmissions, Axles, Brakes, etc.)
✔ Defense & Aerospace Machining
✔ Agriculture & Forestry Machinery
✔ Oil/Gas & Mining Equipment Fabricators
To learn more, visit www.jptonline.com or contact us directly.
Let’s keep the conversation on trade rooted in facts, not fear!
