Tariff impact is hitting

[BoyNextDoor]

Received this, and others like it from a few suppliers in recent days:

"The increased cost of bringing products into the U.S. from China is being passed on through the manufacturer as well as distribution channel, resulting in rising costs throughout the industry. We expect there may be more tariff-related increases over the coming months.

As the impact of the tariffs continues to unfold and new information becomes available to us, we will try to provide immediate updates through our sales organization. If you have any questions regarding the impact of the new tariffs on any currently outstanding quotes from XXXXXX or products you purchase frequently, please reach out to your sales representative. "

Not a great email to get. I'm doing budgets for next year and looking at 10-20% hikes in equipment costs for Tricky Trumpy's ego is bullshit. That is going to translate to 2-3 FTE. That, or hold off as long as I can in making the buy, but then risk even more tariffs.

 

[chillywilly2]

I think tricky should take the tariff money and fund a border wall. You get jobs and everybody else paying for it. A definite win for trump.

You know, even if it is passed on to the consumer...they won't notice the tricky switch

 

[pointless]

You know we're the ones paying for the fucking tarrifs, right?

 

[Kirkrapine]

As I understand it, the whole idea behind the tariff barrier was to give the American counterparts of foreign manufacturers a competitive advantage in the domestic market, which was supposed to create jobs here.

Any sign of that happening yet?

 

[bellisarius]

You know we're the ones paying for the fucking tarrifs, right?

You do realize that that's the WHOLE FUCKING POINT. China has gotten away with their act for far too long. Be it subsidized exports, theft of intellectual material, currency manipulation, and a host of other tactics. There are going to be short term consequences for the US consumer, a small price to pay to get China to clean up its act.

 

[DeYaKen]

You know we're the ones paying for the fucking tarrifs, right?

What you are seeing is a transfer of taxation from the rich to the poor. Tariffs, a form of taxation, are being paid by Americans to the US government. The cost is transferred to the consumer who is now paying more to the government albeit indirectly than before. Meanwhile, the owners of the companies passing on that taxation have just had a big tax cut from the government.

I've got to admit it is a great disguise but it is a tax increase like it or not.

 

[chillywilly2]

The idea of a tariff is to force you to buy domestic because it is now cheaper then imported. Except that domestic can't keep up with demand. So, you still get imported at a higher price and the government gets rich.
Don't forget, profits are generally a percentage of cost and a tariff is a cost so you are paying the importer a profit on the tariff as well as the tariff
Yeahhhh Tricky

 

[SpeareChucker]

If you call it a tariff, then it falls on the poor...



If you call it a tax, it just comes out of profits, or so we have been told for years.

 

[Kirkrapine]

If you call it a tariff, then it falls on the poor...



If you call it a tax, it just comes out of profits, or so we have been told for years.

What on Earth are you talking about? Everybody knows a tariff is a tax,and nobody has ever disseminated propaganda to the contrary.

 

[SpeareChucker]

I am talking about the many conversations here about raising taxes on Corporate America and how those taxes are passed on to the consumer at which point the same voices now so concerned about (Trump) tariffs are the same voices that claim, that cost is not passed on to the consumer, it just comes out of profits.

 

[LadyFunkenstein]

Received this, and others like it from a few suppliers in recent days:

"The increased cost of bringing products into the U.S. from China is being passed on through the manufacturer as well as distribution channel, resulting in rising costs throughout the industry. We expect there may be more tariff-related increases over the coming months.

As the impact of the tariffs continues to unfold and new information becomes available to us, we will try to provide immediate updates through our sales organization. If you have any questions regarding the impact of the new tariffs on any currently outstanding quotes from XXXXXX or products you purchase frequently, please reach out to your sales representative. "

Not a great email to get. I'm doing budgets for next year and looking at 10-20% hikes in equipment costs for Tricky Trumpy's ego is bullshit. That is going to translate to 2-3 FTE. That, or hold off as long as I can in making the buy, but then risk even more tariffs.

What is the HTS code that is affecting your businesd?

 

[BoyNextDoor]

Well the "short term consequences" are a 10% price increase effective today. And a discussion with the sales people that indicated Jan 1 will be another increase between 20 or 30% depending on how this mess continues to play out.

That means less hiring in 2019, for us anyway. As well as having to game the buying decisions and risking overstocking @10% extra cost vs. how much I'll have to buy@ 20% or higher in 2019.

And for the record - all you people that keep saying "taxes just get passed to the consumer as price increases" I have 1 to 3 year contracts where prices are fixed, as per industry norn. And that is the norm for a hell of a lot of industries.

 

[BoyNextDoor]

What is the HTS code that is affecting your businesd?

How or why should I know? I am not the importer. I buy from the distributor or the VAR.

 

[RobDownSouth]

The idea of a tariff is to force you to buy domestic because it is now cheaper then imported. Except that domestic can't keep up with demand. So, you still get imported at a higher price and the government gets rich.
Don't forget, profits are generally a percentage of cost and a tariff is a cost so you are paying the importer a profit on the tariff as well as the tariff
Yeahhhh Tricky

There you go again, interjecting facts into the debate and ruining a perfectly good RWCJ/NotAJ hissy fit.

 

[LadyFunkenstein]

How or why should I know? I am not the importer. I buy from the distributor or the VAR.

I find it odd that you would accept a price increase without doing your due diligence, but you are my ideal customer. You are a lousy employee though.

 

[IG_88]

I find it odd that you would accept a price increase without doing your due diligence, but you are my ideal customer. You are a lousy employee though.

All this time and you haven't figured out he's full of shit?

 

[LadyFunkenstein]

All this time and you haven't figured out he's full of shit?

I know he is full of shit. I am enjoying making it obvious.

 

[colddiesel]

America is a post manufacturing economy - a services economy. Trump has gone far too hard and crudely on Tariffs and nowhere near hard enough on theft of Intellectual property and copywright.

China ultimately has no rule of law, only political diktat. They have a mercantilist culture running a manufacturing economy. To them stealing Intellectual property is ok - they just don't see it as theft. Until the US legislates to ban the thieves outright they are not going to change

Small example . Manufacturing cost of an iphone ex China about $230/250 (Chinese manufacturer pockets $ 8 to 9 profit per phone). US costs of research development, marketing, sales are added, then a gross mark up of 60/65% to the consumer. If you forensically examine Apples financial information you will find that Apple invests as much money in protecting its IP from its own Chinese manufacturers as the same manufacturer earns on the deal - Crazy. And how is a tariff on the Chinese $250 gunna change anything (except US treasury receipts at US consumers cost?)

Incidentally China has not been a cheap labour market for 15 years. The attraction is a highly trained, smart, numerate and biddable labour force. If you want cheap, Bangladesh, Vietnam or Latin America are all a lot cheaper.

China has no respect for the rule of (commercial) law, either internally or externally. They're gunna have to be taught by locking up a few of their executives, massive fines and the banning of entities altogether.

I noticed recently for example that my own small country banned certain Chinese Tech companies from providing any services whatsoever within OZ. The Chinese understand that approach - they don't like it, but they do it themselves so it clearly works. USA needs to toughen up but Tariffs are a last century approach.

 

[toeskr]

Well the "short term consequences" are a 10% price increase effective today. And a discussion with the sales people that indicated Jan 1 will be another increase between 20 or 30% depending on how this mess continues to play out.

That means less hiring in 2019, for us anyway. As well as having to game the buying decisions and risking overstocking @10% extra cost vs. how much I'll have to buy@ 20% or higher in 2019.

And for the record - all you people that keep saying "taxes just get passed to the consumer as price increases" I have 1 to 3 year contracts where prices are fixed, as per industry norn. And that is the norm for a hell of a lot of industries.

Sounds like the liberal campaign sign making business is not a good, long term career.

Hotel rooms always need cleaned, check into that.

With this kick ass economy, people are traveling and spending money.

 

[Saint_Ann]

We generally renegotiate or find a new supplier. Laying people off is the pussy way out.

 

[someoneyouknow]

https://78.media.tumblr.com/4d0f21d002603c95c190a706e96b36c5/tumblr_pcga5lRfIj1qb05two1_500.jpg

 

[BotanyBoy]

https://78.media.tumblr.com/4d0f21d002603c95c190a706e96b36c5/tumblr_pcga5lRfIj1qb05two1_500.jpg

Sounds like a good reason to minimize the governments involvement with the economy.

 

[someoneyouknow]

Sounds like a good reason to minimize the governments involvement with the economy.

Dropping all those sugar and corn subsidies would go a long way, as would not using trillions of taxpayer dollars to pay out the bonuses to banks and Wall Street firms.

 

[toeskr]

https://78.media.tumblr.com/4d0f21d002603c95c190a706e96b36c5/tumblr_pcga5lRfIj1qb05two1_500.jpg

Do you dabble in the stock market or are you waiting for the second coming of Obama to come save your ass from poverty?

Didn't work for 8 years with your hero so maybe you should take some personal responsibility.

International trade can be tricky but don't count on ol Donnie failing so you can say I told you so.

 

[someoneyouknow]

Do you dabble in the stock market or are you waiting for the second coming of Obama to come save your ass from poverty?

Didn't work for 8 years with your hero so maybe you should take some personal responsibility.

International trade can be tricky but don't count on ol Donnie failing so you can say I told you so.

I did very well under the soaring stock market when Obama was in office, unlike so many others who whined and moaned how bad things were because they were in cash so as not to be tainted by him.

Though it's funny you think I don't take personal responsibility for myself considering I'm the one who keeps saying I shouldn't have to pay for health insurance, that I'll be happy to pay my own bills rather than help some insurance hack get their third house or second yacht.