完了, 在美国称其试图损害世界经济后,中国表示将“战斗到底”
版主: Softfist
#8 Re: 完了, 在美国称其试图损害世界经济后,中国表示将“战斗到底”
It isn’t going to work out very well. Average consumer is tapped out. People have become dependent on that cheap crap, and won’t have that option when something around the house breaks.
Confidence in the economy ain’t $4,100+ gold…
#9 Re: 完了, 在美国称其试图损害世界经济后,中国表示将“战斗到底”
UncleTomfoolery
5 hours ago
remove
China is bad..... Yes
But, the fact is a huge percentage of America's low cost manufacturing base is dependant on China. There is no real alternative that won't take years more to develop.
Americans have yet to really feel much of the pain that has been put on companies that rely on Chinese imports because all of them are playing a fools game of believing there is a deal coming that will reduce the current tariff levels and none of them wanted to be the first to raise prices.
The time is over. Many companies have been bleeding since January when the first tariff hike happened. Some of these companies tanked and are gone and many like mine have been basically treading water and bobbing up and down. It's over. Prices are going up tomorrow for my company and right now MANY others are doing the same.
We have agreed to split the actual cost of goods increase with our customers. Right now we are paying between 105% and 239% tariffs from China while last year we were paying 25%. This week we are passing on a 40% increase which is unprecedented.
We WILL lose unit volume if we keep the business and we will likely lose customers. Layoffs are coming.
Another 100% tariff ends my company that has been in business for 40 years.
We have spent 3 years trying to get out of China. It just isn't possible for low cost high volume product. The retailers and customers just won't pay 3X for a made in USA label.
About half of American consumers do care about made in USA but the price can't be more than 10% higher or they will choose the lower cost option. This is just a fact. To double our retail price for an American flag on the header card is just not possible.
So here we are. Recession and massive inflation IS coming. The twilight period we have existed in where consumers have yet to feel much of the pain from tariffs is over. The inflation wave is coming and it will be very noticeable and will cause a recession.
#13 Re: 完了, 在美国称其试图损害世界经济后,中国表示将“战斗到底”
UncleTomfoolery
4 hours ago
(Edited)
I already said it is not possible. I have spent more than 6 years trying. 90% of my business is to big box retailers that set the retail prices based entirely what they believe the consumer will pay. They also have rigid margin requirements. There is no way around this. If the retailers have done demographic research, have millions of skus, and volumes of sales data, and they say the most we can charge for your item is $29.99 then that is the end of the story if I want the business. To go to them and say "because of tariffs I must raise my wholesale price 40% and you must raise your retail price to $42.99." what do you think their response will be? Ya their response IS "you are out of your mind. find a way to get to less than a 20% increase or we will drop your line". If I came to them and said we are now "made in USA' but you need to raise your price to $59.99 I would get laughed out of the building. I know. It has happned to me twice. I have spent two years trying to move portions of production to India which was only about 10% successful but then Trump slapped them with a 50% tariff and took the wind out the sails.
There is just no way to produce low cost/high volume product in the USA at anywhere close to prices from China even with the tariffs and here is the kicker.... Most American manufacturers DO NOT WANT the business. They are at maximum capacity already and the idea of bringing on a high volume/low margin line of goods doesn't appeal to them AT ALL. On top of that they are leery of spending on any infrastructure to increase capacity because they have a very real fear that the next administration will remove a significant portion of the tariffs and the business will race for the exists back to China.
The problem is Trump didn't really understand the nuance of the problems and neither do his made in USA followers. I would LOVE to bring back the manufacturing. I am a patriot and I love the USA and I voted for Trump. The way the tariffs were rolled out though in my opinion were fatally flawed. It would have been better to tack on the extra 25% in January as he did and then leave it alone for a year with the warning that more tariffs WILL happen no matter what the following year. Another 25% in January 2026 and another warning that more tariffs WILL happen in 2027. This method would have provided the certainty the businesses need to make investments outside of China and those investments need time to come on line. What Trump did was get pissed off and hit the big red button. Thousands of businesses will pay the price and millions will lose their jobs because of it.
I honestly don't care what the tariff is. Make it 500% as long as the tariff is permanent and there is at least 1 year before implementation. The issue really comes down to uncertainty. Nobody wants to make a move because Trump might change his mind on a whim and cancel all the plans they made. So everyone just sits on the sidelines wafting for certainty and bleeding while they wait.