Inserts:

00:03 Report | Aline Spantig
00:32 Tony Hynes | Founder & CEO Prosthetics Machine Company
01:48 Rich DeGonza | Prothestics Machine Company
02:24 Tony Hynes | Founder & CEO Prosthetics Machine Company

SCRIPT

00:01

For the first time in his life, this Ukrainian soldier walks on his new leg.

A US company donated the machines that make these prosthetics possible. But their work is becoming much more difficult. Tariffs are driving up costs.

0:19 - 0:23
+++SOT Tony Hynes Founder & CEO Prosthetics Machine Company +++
"It's, it's insane."

Will tariffs stand in the way of helping Ukraine's wounded?

0:27 - 0:55
+++SOT Tony Hynes Founder & CEO Prosthetics Machine Company +++
"So, this is the machine that we have developed for making prosthetic sockets. It is a 3D printer. The socket is what comes out of the machine. Then you would attach it to the puck to lock it in place. So, there's your foot assembly pylon attached to the socket. So, you know, basically it's that attached to that."

Tony wants to send 26 more of those machines to Ukraine — but here’s the problem:

00:01:01:05 - 00:01:16:17
+++SOT Tony Hynes Founder & CEO Prosthetics Machine Company +++
"The screw that you see here, the rails that they ride on, those are Japanese. The motors which you see driving the rails are from China. So basically, everything on this machine is tariffed."

Without tariffs, the machine costs 18,000 US dollars. Tariffs could add a couple thousand on top.

01:24 - 01:30
+++SOT Tony Hynes Founder & CEO Prosthetics Machine Company +++

We've already laid off 15 people in the last two months because of declining sales. We're already feeling it. ((We're already seeing it at the expense of our products. I mean, we're negotiating, we're trying to keep prices down as best we can. But just certain things, we have no control over.))

Tony checks in with his supply chain director.

00:01:33 - 00:01:36
+++SOT Tony Hynes Founder & CEO Prosthetics Machine Company +++
"Hey Rich. How about you give me a rundown about where we are at tariffs today."

00:01:37:07 - 00:01:53
+++SOT Rich DeGonza Director Supply Chain+++
Ah, stressful. Very stressful. It was at 145%. I am constantly looking at what the changes are with the tariffs and from there trying to understand what the amount is going to be.

The tariffs add extra costs to raw materials like aluminum, as well as to the imported components.

00:02:03 - 02:20
+++SOT Tony Hynes Founder & CEO Prosthetics Machine Company +++
"It's just completely unrealistic for us to even consider all of our sourcing in the United States. All these parts are coming from all over the world.
We'd then have to redesign our machines. You're talking about a generation's worth of work. This is not this is not a short term thing. This will take many, many, many years for us to do."

Despite the difficulties, Tony wants to keep giving.

So far, four machines have already made it to Brovary, Ukraine. That was before the tariffs hit.

Now, US staff are showing their Ukrainian partners how to use the equipment via videocalls.

Tony's engineers could assemble this machine with parts that he bought before the tariffs hit.

Now it's being prepared for shipping.

But the uncertainty is still on Tony's mind.

02:49 - 03:08
+++SOT Tony Hynes Founder & CEO Prosthetics Machine Company +++
What will have to happen is there's going to have to be some type of consistency in the tariff situation so that we all know the rules and that we can all act accordingly.
Until there is some kind of certainty around tariffs, it's going to be chaotic. It's just the only way to explain it. It's just, it's just plain chaos.

At least this one is good to go! Destination: Ukraine.

END