Politics These tariffs are the biggest pain in my ass

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mook

mook

The 2018-19 season was the best I've seen
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I run a small business that manufactures a lot of our products in China. It's fucking stressful as hell in the best of times, but this year my blood pressure has gone through the roof thanks to these import tariffs. I've raised all my prices drastically to cover the new costs (so yes, it's a tax on American consumers). A lot of my competitors haven't yet (I don't know what the fuck they are thinking, but I guess maybe they just have more inventory?) and so I've taken a massive hit in sales.

It's taken a ridiculous amount of my time trying to figure out new pricing strategies in the face of increased competition. I don't engage in anything shady, but I know several of my competitors are avoiding these duties by getting their Chinese vendors to doctor invoices to hide the true costs. Because I do everything by the books, I'm penalized competitively. When your single biggest cost goes up overnight by 25%, it's a fucking nightmare.

I've looked at moving manufacturing to other Asian countries (American is simply not an option), but jeez, after identifying vendors, getting prototypes and then manufacturing/freight, it can take me 9 months to make the transition. What's the point when Trump can wake up next week and throw tariffs on that country too?

I like designing new stuff. It's what I'm good at, and in normal circumstances it's what I'd be doing. But with all my cash going into covering tariffs, I don't have the funds to invest in new designs I've been developing. And even if I did, jesus I feel like with all the uncertainty I don't want to throw more on by introducing new products. This is just a clear-cut example of government intervention picking winners and losers, and forcing entrepreneurs to focus on things that just aren't good for the larger economy. Why on earth should I have to build into my business model wondering who a politician will get angry with next week?

It used to be that you could at least rely on Republicans not to fuck with small businesses, and they can't even do that anymore.

"Trade wars are easy to win," they tell us.

Yeah, they may be easy for you, asshole.

I have never been more fucked over personally by a politician in my life. Someday I will be ranting to my great grandkids about how you should never vote for a goddamned Republican again.
 
Just out of curiosity, would you mind telling what it is you produce?
 
It’s simple, just enact tariffs that the US consumer ends up paying for, and then just charge the US taxpayer to pay all the farmers hurt by it, it works out great!

If you are a soybean farmer. I’m guessing you aren’t a soybean farmer.
 
mook said:
I run a small business that manufactures a lot of our products in China. It's fucking stressful as hell in the best of times, but this year my blood pressure has gone through the roof thanks to these import tariffs. I've raised all my prices drastically to cover the new costs (so yes, it's a tax on American consumers). A lot of my competitors haven't yet (I don't know what the fuck they are thinking, but I guess maybe they just have more inventory?) and so I've taken a massive hit in sales.

It's taken a ridiculous amount of my time trying to figure out new pricing strategies in the face of increased competition. I don't engage in anything shady, but I know several of my competitors are avoiding these duties by getting their Chinese vendors to doctor invoices to hide the true costs. Because I do everything by the books, I'm penalized competitively. When your single biggest cost goes up overnight by 25%, it's a fucking nightmare.

I've looked at moving manufacturing to other Asian countries (American is simply not an option), but jeez, after identifying vendors, getting prototypes and then manufacturing/freight, it can take me 9 months to make the transition. What's the point when Trump can wake up next week and throw tariffs on that country too?

I like designing new stuff. It's what I'm good at, and in normal circumstances it's what I'd be doing. But with all my cash going into covering tariffs, I don't have the funds to invest in new designs I've been developing. And even if I did, jesus I feel like with all the uncertainty I don't want to throw more on by introducing new products. This is just a clear-cut example of government intervention picking winners and losers, and forcing entrepreneurs to focus on things that just aren't good for the larger economy. Why on earth should I have to build into my business model wondering who a politician will get angry with next week?

It used to be that you could at least rely on Republicans not to fuck with small businesses, and they can't even do that anymore.

"Trade wars are easy to win," they tell us.

Yeah, they may be easy for you, asshole.

I have never been more fucked over personally by a politician in my life. Someday I will be ranting to my great grandkids about how you should never vote for a goddamned Republican again.
Click to expand...

Have you sent a bill to China? Trump says they're paying for the tariffs.
 
Mook, just curious, how will Brexit affect your business?

barfo
 
1) Sorry to hear the tariffs are causing you problems. Having worked in the import/export business, I understand what you are going through. Glad I am retired from it.

2) I have been strongly against these tariffs from day one. Trump does not understand what the real results of his faulty tariff program will be.

3) China has not, nor will they ever pay these tariffs. The tariffs are paid by the USA companies that import products made in China, such as Mooks.

4) The only way China will be hurt by the tariffs is if we stop buying products made in China. In many cases, that is no longer an option.


Mook, I have an idea that "may" help you.
I was interested in buying a product made in China. The retail price jumped from $500 to $650 overnight. Here is what they came up with to make it less painful for everyone.

They included about $100 worth of options that I probably would have bought anyway.. Which made it less painful for me to pay the higher price.

The manufacture included the options in the package deal to the importer. Their cost was probably in the $10-$20 range which helped the importer.

The importer would still pay the tariffs, but could sell the product at a margin that kept them in business.

It was a win-win-win solution rather than Trump's lose-lose-lose options we have now.
 
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China and Russia will have brand new manufacturing bases now...in Mexico, Central and South America ..we are essentially relying upon Donald..." I don't read much" Trump to play chess against the Chinese and Russians....whew......along with a global cold war..military expansion and international trade war.......FUBAR
 
riverman said:
China and Russia will have brand new manufacturing bases now...in Mexico, Central and South America ..we are essentially relying upon Donald..." I don't read much" Trump to play chess against the Chinese and Russians....whew......along with a global cold war....FUBAR
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Africa. China has been investing engineering and manufacturing there for over 10 years now.
 
Hobbesarable said:
Africa. China has been investing engineering and manufacturing there for over 10 years now.
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That too...eastern Europe...Indonesia....it's global but our neighbors are Latin America and estranged , pissed off Canadians...
 
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One segment of our company is semi-con. Right here in Portland is where we build the tools. We are in the midst of a massive downturn because of the tariffs. Our VP came out and said as much two weeks ago. Direct correlation. We're a contract manufacturing company. If we didn't have non semi business we would have laid off at least 60 people. As it stands, we are forced to take every Friday off and use our unemployment benefits to cover Friday's we don't work (or use accrued PTO which I don't want to do).

Trump has real life consequences. All the shit he's spouting about manufacturing returning or thriving in america is an absolute, 100% lie.
 
You’re the one who makes those really nice looking bread boxes aren’t you?

Sorry to hear about your troubles, hopefully things end up working out for you should you end up making some changes.
 
riverman said:
China and Russia will have brand new manufacturing bases now...in Mexico, Central and South America ..we are essentially relying upon Donald..." I don't read much" Trump to play chess against the Chinese and Russians....whew......along with a global cold war..military expansion and international trade war.......FUBAR
Click to expand...
Fucked Up Beyond All Recognition for those who may have been wondering. I think I first heard of it from Catch 22.
 
The Professional Fan said:
One segment of our company is semi-con. Right here in Portland is where we build the tools. We are in the midst of a massive downturn because of the tariffs. Our VP came out and said as much two weeks ago. Direct correlation. We're a contract manufacturing company. If we didn't have non semi business we would have laid off at least 60 people. As it stands, we are forced to take every Friday off and use our unemployment benefits to cover Friday's we don't work (or use accrued PTO which I don't want to do).

Trump has real life consequences. All the shit he's spouting about manufacturing returning or thriving in america is an absolute, 100% lie.
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Our parent company is a CM in the EMS industry and they seem to be doing really well right now. They mainly only build stuff for high end Military Research and Aerospace though. They do some work for defense contractors and, high performance electronics.

The company Im in is designing robotic systems for manufacturers. We got around the China Tariffs by just 3d printing anything not needed for rigidity, designing our own encoders, and everything else we designed for Aluminum which can be cast incredibly cheap at scale.

Obviously a lot of those things aren't viable options for other companies. So that sucks.

In my own little Bubble I had actually forgot the Tariffs existed, because we moved so fast to get around it.

Sorry about your job situation.
 
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SlyPokerDog said:
Have you sent a bill to China? Trump says they're paying for the tariffs.
Click to expand...

I've noticed Trump is very good at telling people how they will get paid, and then the payments not arriving. Mexican border walls, Trump contractors, China.....

It's almost like he's just making random shit up that feels good so people believe it. No wait, it's exactly like that.
 
barfo said:
Mook, just curious, how will Brexit affect your business?

barfo
Click to expand...

Well, it's kind of a race to see if Boris Johnson can fuck up the British economy faster than Trump can fuck up the American economy. If Bojo wins the race to the bottom, which he seems to be doing, it will be fantastic news for me personally. Nothing would help me more than a cratering British pound coupled with a cratering British housing market. My income comes in dollars, and I currently rent here.

So yeah, while no politician has ever fucked me harder than Trump with his incompetence, no politician will likely ever help me more than Bojo and his incompetence. But I'd still rather not go through Brexit. Just because something is good for me doesn't make me happy to see friends and my children get screwed over.
 
Lanny said:
Boris is the United Kingdom's Trump. See, we're not the only dumb ones.
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That's the popular perception, but personally I feel like he's much more clever than Trump. He's kind of a cross between Trump and Nixon. He's got Trump's laziness and crassness and complete lack of character, but also Nixon's intellect and complete lack of character.

Trump is a toddler with a machine gun, while Boris is a Al Capone dressed up as a toddler with a machine gun. While we debate which is worse, somebody should really look into that machine gun.
 
PDXFonz said:
You’re the one who makes those really nice looking bread boxes aren’t you?
Click to expand...

Thanks! Yes, we make this bad boy. Also, here's my site. If you buy something, get it there. I make more money and it costs the same! :)

Sorry to hear about your troubles, hopefully things end up working out for you should you end up making some changes.
Click to expand...

Man, I've pivoted so many times I feel like a sprinkler head.
 
oldfisherman said:
Mook, I have an idea that "may" help you.
I was interested in buying a product made in China. The retail price jumped from $500 to $650 overnight. Here is what they came up with to make it less painful for everyone.

They included about $100 worth of options that I probably would have bought anyway.. Which made it less painful for me to pay the higher price.

The manufacture included the options in the package deal to the importer. Their cost was probably in the $10-$20 range which helped the importer.

The importer would still pay the tariffs, but could sell the product at a margin that kept them in business.

It was a win-win-win solution rather than Trump's lose-lose-lose options we have now.
Click to expand...

I probably should ask for some concessions like you are discussing. There's only so far we can push things, but we could probably do better.
 
mook said:
Thanks! Yes, we make this bad boy. Also, here's my site. If you buy something, get it there. I make more money and it costs the same! :)

Man, I've pivoted so many times I feel like a sprinkler head.
Click to expand...

I was literally just looking at some wood spatulas and spoons on Amazon today. I'll buy them from your site instead. That way I know who to complain to if I'm unhappy with the product! :bgrin:
 
MARIS61 said:
As an actual customer of your company I can attest to your product’s high quality.

I am a tad peeved to learn that my money was used to continue the Chinese forced-slave-labor industry. I thought you were more “woke” than that.

In addition to the daily suffering of millions of slaves, consider the total lack of environmental protections and health/safety regulations that account for the difference in cost to you compared to manufacturing in the US. The hypocrisy is alarming.

If I had a tiny violin I would play it for you.

Maybe it’s not Trump hurting your bottom line? Maybe it’s karma?
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lmao
 
Here he goes again.

China raised the tariffs on USA imports in retaliation to Trumps tariffs. So....

Trump is re-retaliating by increasing all imports from China by an additional 5%.

Saw Trump bragging about how many Chinese have lost jobs due to his tariffs. BUT, no mention of how many USA workers will lose jobs due to China's tariffs on USA products. One local industry bracing for a big hit is WA state apple growers. Sure there are many more.
 
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