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New Chinese Tariffs -- It finally happened.

Evil_Jester

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Is this really the first thread about it? For all you "buy from china and resell" guys, I would think this would be big news! How do you think this will impact your businesses?
 

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TKDTyler

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Is this really the first thread about it? For all you "buy from china and resell" guys, I would think this would be big news! How do you think this will impact your businesses?
I'm expecting most businesses to build the cost into their finalized price - the consumers are the ones who will be paying for the difference in the end.

Commoditized items coming from China already have razor thin profit margins, and I expect the "race to the bottom" to be even more competitive. Manufacturers are going to have a strong leg to stand on where importers are faced with a much higher bottom line.

Essentially, low margin products are getting the shaft on this one and in order to remain profitable, the consumer is inevitably going to be paying for the import tax.
 
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Evil_Jester

Evil_Jester

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I'm expecting most businesses to build the cost into their finalized price - the consumers are the ones who will be paying for the difference in the end.

Commoditized items coming from China already have razor thin profit margins, and I expect the "race to the bottom" to be even more competitive. Manufacturers are going to have a strong leg to stand on where importers are faced with a much higher bottom line.

Essentially, low margin products are getting the shaft on this one and in order to remain profitable, the consumer is inevitably going to be paying for the import tax.
yeah makes sense. Everybody is going to have to pay the same tax.
 

Supercar

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Yep. Nobody in small and medium retail or wholesale is going to move the manufacturing operations to the US. China's labor is still cheaper. The retail prices will go up and the consumers will start subsidizing all the uncompetitive steel workers somewhere in Pittsburgh (who just voted Democratic) to enable them to continue to do what they do. Trumponomics .

I should be receiving about 350 lbs of steel parts in the mail in a couple of months. I think FedEx takes the tax out of my account somehow magically, even thought I am not the shipper but the receiver. I will see how much that bill is and raise the prices accordingly. Everybody will.
 

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IGP

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Isn't the tariff mostly on tech products?

That's not going to affect the majority of "buy from china and resell" guys.
 

amp0193

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Would love a link to a credible source on this, and what sorts of products it applies to.

I know if I google, I'll find nothing but sensationalized "news" articles.


Really, there's only a handful of HTS codes I care about... if they're unaffected, I'm good.
 

TKDTyler

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Would love a link to a credible source on this, and what sorts of products it applies to.

I know if I google, I'll find nothing but sensationalized "news" articles.


Really, there's only a handful of HTS codes I care about... if they're unaffected, I'm good.
Just read the signed bill - there is no finalized list yet, but it should be available soon

“(b) To advance the purposes of subsection (a) of this section, the Trade Representative shall publish a proposed list of products and any intended tariff increases within 15 days of the date of this memorandum. After a period of notice and comment in accordance with section 304(b) of the Act (19 U.S.C. 2414(b)), and after consultation with appropriate agencies and committees, the Trade Representative shall, as appropriate and consistent with law, publish a final list of products and tariff increases, if any, and implement any such tariffs.”

Source: Presidential Memorandum on the Actions by the United States Related to the Section 301 Investigation
 

hellolin

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Have you check out what is actually in the tariffs? It seems like they are protecting the advanced industries that China is trying to upgrade itself on, so unless some of you are in those advanced industries, probably won't have that much of an effect. I am talking about high level engineering stuff, not your everyday import/export things, I assume no one here are doing business develop and then manufacture computer chips and electronics from scratch?
 

hellolin

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Isn't the tariff mostly on tech products?

That's not going to affect the majority of "buy from china and resell" guys.
Yup, high level tech stuff too, those are the industries that Chinese companies are trying to "upgrade" themselves into the industries of the future. Guess Trump is trying to make their effort harder now.
 

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