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Yup. I am the international buyer at my Made in America company. We pay the tariffs. We do not absorb them it gets added into the price. And when China is 50-75% lower than American made, another 30% tariff isn’t going to bring the business back here. I kept posting that on my Facebook for weeks before the election. No one listens.
Everyone seems to be wringing hands about policy, but this is just another datapoint that propaganda won this election.
Even worse, China has already begun moving their Chinese-owned production to Malaysia, circumventing the tariffs on Chinese imported finished goods.
I heard about this a few months back on a podcast about auto parts. China just shipped the fan belts they were making to a warehouse in Vietnam, rebranded them, and shipped them to the US, tariff free.
They did some sort of chemical analysis on the Made in China and Made in Vietnam belts and the formulation of the rubbers was identical.
Enforcement to counter this would likely eat up too much of the tariff money, so it just won’t be done. China will still get paid the same, and at minimum we’ll eat China’s additional shipping costs.
That is really interesting, what is the name of the podcast?
I was able to find it!
It is Planet Money - The Trade Fraud Protective 23 AUG 2024
Audio and transcript at that link, or you should be able to find it on your podcast app of choice.
It’s also power steering hoses in Thailand, not fan belts in Vietnam, so I hope that’s still ok. 😉
Thank you
My pleasure!
Once again, corporate america will use this as an excuse to raise prices more than necessary, gouging the people and stuffing the pockets of CEOs.
Correct. Trump’s 2017 tariffs raised the price of foreign made dishwashers by 20%. American manufacturers also jacked up the cost of their appliances, in order to match that price that customers were paying for the other brands, pocketing the difference.
That’s the point
inb4 products that have absolutely no supply chain dependence to China ‘somehow’ increase in price.
Hey now, the Waltons need some extra cash. Who could even get by on a measly four million dollars a hour in this economy?
Glad they said this after the election
/s
They don’t give a shit that the customers will be paying more. In fact, if anything, they probably love the excuse to jack up prices further - or further cut their workforce to the bone, or whatever the latest fad in padding executive compensation packages is.
Trying to speak sense to Americans. You are in for a rude awakening. They will blame the high prices on space lasers.
And immigrants, “wokeism,” and Obama, Joe Biden.
Obviously. The point is, that if you make the product in the United States, you won’t pay the tariffs.
Who would have thought that importing a product from China is when the 30% tariffs would apply?
Biden never rolled back Trump’s 2017 Tariffs. Why didn’t he?
Oooooooooo
The problem is that it makes everything more expensive. With the alternatives costing 30% more all the domestic just raise their prices by 30% to match. Of course that gives some wiggle room for domestic to be like maybe 1% lower but basically everything shoots up because capitalism and extracting as much value as possible.
Like when the steel and aluminum tarrifs went into effect the domestic prices jumped up with it.
I think once China slapped on retaliatory tariffs om farmers and the US had to drop a new wave of subsidies it locks in the tariffs a bit until a new wave of negotiations can be made. I suspect China stalled those negotiations in hopes they could dupe trump into a better deal.
Given Trump is saying that the trade deal with Mexico is bad (the deal he negotiated) and is threatening tariffs on Mexico its clear he is just using tariffs as a scare tool. Unfortunately every world leader saw him get dog walked in the debates and knows he’s a moron so now its unlikely he’ll be taken seriously.
Oof. Dorian Gray just looked at the portrait.
