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Free registration at the forum removes this block.This is raising taxes. Pure and simple.
Not sure why Republicans cheer him on and Democrats get mad. I am never in favor of the government seizing money out of the economy.
And for what? What is that money going to go to? Not American manufacturing jobs. Just the black hole.
This is another policy that makes my blood boil! I know that there are more important issues, however, this one is painful for my business. A friend and I did a lot of research on a niche and found ten products that we took risks on and made a lot of innovations on. We ordered many samples and it took us a lot of time and energy to innovate the products. Now we have to import from other countries because the labor costs are too expensive in North America.
@AgainstAllOdds I couldn't have said it better myself.You've positioned yourself wrong.
In my business, the Trump tariffs are going to add around $100,000 in tariffs to machinery we want to import, and affect 15% of the products we're selling.
For the other 85%, we're going to kill it. Why? Because we built a business that's not reliant on China - especially when the president has week after week said that he's going to put tariffs on China. There's individuals that source solely from China... and now they're F*cked. Meanwhile we're going to bite away at their market share bit by bit until Trump takes away the tariffs.
Note: My take is that this is a phantom trade war. The 25% tariffs won't go into effect for long.
For your business: Ask yourself where everyone is buying from. If it's China, then your innovations will allow for a 25% revenue increase. If it's not China, then you better start searching for another supplier - and quick.
@AgainstAllOdds I couldn't have said it better myself.
If I may be permitted to boast a little, I have been several years ahead of the game. My sourcing and importing book editions 2017, 2018 and 2019 have all promoted the desirability of sourcing from countries other than China, and provided genuine B2B links to many exporting countries.
Unfortunately, complacency and laziness have kept thousands wedded to China suppliers, and they are now paying the price.
I posted this in Oct. 22, 2014 in my AMA thread:
I have directed many people to other countries where they have been able to obtain better quality at the same price as in China, or sometimes they have bought similar quality but at a lower price. In some cases they have found unique products not produced in China.
Sourcing from China is easy, although many people get burnt for that very reason. They think it is so easy that they can be careless about sourcing. They treat it as casually as buying from their local store and they blindly accept everything they read on B2B sourcing sites.
Sourcing from other countries will require greater expertise, but I have taught many people how to do it. Those who do begin sourcing in other countries may well be one step ahead of the competition in a few years’ time.
Walter
It's negotiation and game theory at its finest.
China wants to wait off closer to the election to figure out whether or not Trump is getting re-elected. Meanwhile Trump is forcing them to make a decision now. Either they take the deal that he's offering, or they risk being screwed for 5 more years assuming he wins in 2020.
Personally, I'm 100% behind the tariffs. China will cave before the U.S. (Trump) does.
An individual whose opinion I admire on the topic is Marty Davis from Cambria. Essentially, his main point is like all economists, that economics supports free trade. However, you cannot have free trade without fair trade (lack of subsidies, excess of government loans, free electricity, currency manipulation, etc.).
What Trump is doing is enforcing fair trade in order to allow for free trade. Tariffs are an enforcement tool, and Trump is using it as such.
These tariffs are really low risk, really high reward in terms of getting China to do what the U.S. wants.
Call me old fashioned, but I tend to believe the words that come flying out of a POTUS mouth with no teleprompter against his advisors' strong suggestions to tamp it down.
Trump shooting from the hip "I am a tariff man." Me listening "I guess he likes tariffs." Getting this elaborate negotiation narrative out of what he has said is putting words in his mouth.
Now there is a fork in the road here.
You either trust the government knows what is best for us.
-or-
Question it because they have given us every reason to.
I do know there is nothing as permanent as a temporary government program.
What do tariffs really do? They literally add 1:1 inneficencies to the supply chain of importers in order to "make domestic companies more competitive."
What is the ripple effect? They put US companies on the government tit. They aren't built to withstand global competition and they aren't forced to innovate or improve processes. Why? Because they dont have to. It stagnates growth of the very industries it is designed to help letting the rest of the world pull further and further ahead. Isolating us totally backfires.
If it is all a negotiating scheme... I will be happy to see all of this roll back to some very favorable terms of international trade.
In the interim. Tariffs are taxes and I am never going to believe direct government created inefficiencies are pro-business policy.
By the way... For those of you wondering, yes I am a Trump supporter. My wife and I go to an event at his home once a year... This isn't coming from a "Never Trumper" or a Democrat.
and patient they are.all they have to do is be patient
Holy shit, that's worse than the mob.I filmed this video for the forum because I wanted to show an example of where value goes to die. What starts as a pretty lucrative deal becomes....
This is close in numbers to a deal was recently considering. The one thing I have made in China. The tarrifs would have popped up during the production process. It would have already been in motion. I would have also had to carry nearly 50 grand of this gross deal for 120 days if everything went smoothly. For 6 grand that I would get to keep. This deal died on timing, the client drug feet on a down payment to the point where I wasn't comfortable with their delivery schedule... I am sure glad that happened.
That 25% doesn't sound like much, but it is HUGE when it is slapped right in the middle of a supply chain. My effective tax rate on this deal would have been 70%.
Getting this elaborate negotiation narrative out of what he has said is putting words in his mouth.
I filmed this video for the forum because I wanted to show an example of where value goes to die. What starts as a pretty lucrative deal becomes....
This is close in numbers to a deal was recently considering. The one thing I have made in China. The tariffs would have popped up during the production process. It would have already been in motion. I would have also had to carry nearly 50 grand of this gross deal for 120 days if everything went smoothly. For 6 grand that I would get to keep. This deal died on timing, the client drug feet on a down payment to the point where I wasn't comfortable with their delivery schedule... I am sure glad that happened.
That 25% doesn't sound like much, but it is HUGE when it is slapped right in the middle of a supply chain. My effective tax rate on this deal would have been 70%.
Wow... Thanks for breaking it down @Kak. That's outrageous. $60,000 of value, what's your return? $6,000...
Holy shit, that's worse than the mob.
@Kak, it's a pity you don't write for CNN. You made it all much clearer than the rather amateurish article linked by the OP. It was obvious that she knew practically nothing about importing.
Walter
Well, at least it got the convo started!@Kak, it's a pity you don't write for CNN. You made it all much clearer than the rather amateurish article linked by the OP. It was obvious that she knew practically nothing about importing.
Walter
I filmed this video for the forum because I wanted to show an example of where value goes to die. What starts as a pretty lucrative deal becomes....
This is close in numbers to a deal was recently considering. The one thing I have made in China. The tariffs would have popped up during the production process. It would have already been in motion. I would have also had to carry nearly 50 grand of this gross deal for 120 days if everything went smoothly. For 6 grand that I would get to keep. This deal died on timing, the client drug feet on a down payment to the point where I wasn't comfortable with their delivery schedule... I am sure glad that happened.
That 25% doesn't sound like much, but it is HUGE when it is slapped right in the middle of a supply chain. My effective tax rate on this deal would have been 70%.
You get 6 thousand dollars for your hard work and risk.
The government gets 14 thousand because you'll go to jail if you don't.
I just watched your video and had to create my own response.
What your video is missing is the opportunity that was created by these tariffs. Companies that have been better prepared will gain more market share and knockout the competition. This is every entrepreneur's wet dream. The entrepreneurs that know how to source, and are willing to put the work in to create a new supply, are the ones that are going to dominate the market.
The ones that are going to lose are the ones that are scared of change, ignorant, lazy or busy, and stuck in their ways.
On top of that, this tariff is something that everyone could've prepared for. It wasn't out of the blue. Trump has been saying that he'll put taxes on China for at least 8 years now. Here's a video of him from 2011:
These tariffs are a matter of perspective. The perspective I choose is that they're an opportunity. Whether you consider this an opportunity or "extra tax" is up to you.
They don't really practice Communism, with its open market policy at all.I don't think China will cave.
The beauty of communism is all they have to do is be patient and wait for a new president, either D or R. That will be in 20 months or in 4 years. If they watch American news, they probably think the chances of DJT being reelected is slim and none. So why bother when they can just delay, delay, delay...
For some reasons, it reminds me to look back in history at Japan, who used to be in China's shoes as a rising Asian power, what with the Russo-Japanese conflicts, Meiji restoration and all...https://www.chinalawblog.com/2019/0...il_qjW97pS94mUW3P64rVbsmyFmGVEDxjtCMcctwaUilo
The US-China Cold War Starts Now: What You Must do to Prepare
Yes, machiavellian.The optimal strategy in game theory is always tit-for-tat.
At this point we are heading for a trade war.
Remember China is communist, I'm not entirely familiar with china but based off my experience the politics there are very machiavellian.
It's negotiation and game theory at its finest.
China wants to wait off closer to the election to figure out whether or not Trump is getting re-elected. Meanwhile Trump is forcing them to make a decision now. Either they take the deal that he's offering, or they risk being screwed for 5 more years assuming he wins in 2020.
Personally, I'm 100% behind the tariffs. China will cave before the U.S. (Trump) does.
An individual whose opinion I admire on the topic is Marty Davis from Cambria. Essentially, his main point is like all economists, that economics supports free trade. However, you cannot have free trade without fair trade (lack of subsidies, excess of government loans, free electricity, currency manipulation, etc.).
What Trump is doing is enforcing fair trade in order to allow for free trade. Tariffs are an enforcement tool, and Trump is using it as such.
These tariffs are really low risk, really high reward in terms of getting China to do what the U.S. wants.
I really had high hopes that the US-China talks would reach some kind of agreement.
Some of my Chinese relatives have been sounding rather anti-American in the last Chinese New Year reunion, and this makes me ill, considering you guys aren't a bad bunch!
Yes, of course.You realize this news is amazing for countries like yours (Malaysia), right?
The longer a trade-war goes on between the U.S. and China, the more countries south of China benefit. New Chinese factories, investment, etc. Meanwhile whichever factories you have in the region competing against China can be more competitive.
I just watched your video and had to create my own response.
What your video is missing is the opportunity that was created by these tariffs. Companies that have been better prepared will gain more market share and knockout the competition. This is every entrepreneur's wet dream. The entrepreneurs that know how to source, and are willing to put the work in to create a new supply, are the ones that are going to dominate the market.
The ones that are going to lose are the ones that are scared of change, ignorant, lazy or busy, and stuck in their ways.
On top of that, this tariff is something that everyone could've prepared for. It wasn't out of the blue. Trump has been saying that he'll put taxes on China for at least 8 years now. Here's a video of him from 2011:
These tariffs are a matter of perspective. The perspective I choose is that they're an opportunity. Whether you consider this an opportunity or "extra tax" is up to you.
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