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
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. 😉
inb4 products that have absolutely no supply chain dependence to China ‘somehow’ increase in price.
- It’s Walmart: what item they sell has no connection to China?
- It’s important tariffs actually the board not just China
I think a lot of their food items aren’t from China, and a few random things are even domestic. I think they sell Lodge cast iron pans, which are fully made in America.
I think his “plan” is a really big tariff on China and a moderate one on every other country?
That’s my understanding as well.
But, as the original comment suggested, it doesn’t really matter.
If every other cast iron pan goes up 15% in price, what do you think Lodge will do?
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keep their price the same, see modest relative increase in market share with a demand for investment in additional production, knowing full well the tariffs aren’t going to be permanent leaving them over-invested in production whenever they drop the tariffs.
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Also raise their prices by 15%, immediately show increased revenue at no additional cost to shareholders next quarter. CEO gets massive bonus.
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