New Chinese Tariffs -- It finally happened.

[Evil_Jester]

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]

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.

 

[Evil_Jester]

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.