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25% Tariffs on various machines from China, effective July 6, 2018

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  • reggie_obe
    replied
    Originally posted by fjk View Post
    Doubtful
    For example
    We currently have something like 200k people working in steel mills, and net import something like 30-40% of our steel consumption.
    Let’s be generous and say that all imports disappear and our steel production goes up 100%. That means another 200K steel mill workers.
    You leave out the positive effect of building the extra capacity onto existing mills or construction of completely new ones. Workers that would be employed in the design< engineering and construction. The need for more rail and trucking, electric and natural gas, more workers in the industries that supply and support steel production, etc., etc.

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  • Guest's Avatar
    Guest replied
    Hopefully the tariffs are permanent. The income the treasury department gets from the tariffs now and hopefully more tariffs on an additional 500B of imports later might allow the new 2018 IRS tax brackets to hold and maybe even reduce them even more. And the tariffs need to be permanent for them to do good for the USA. I think over time China will have no choice but to absorb some of it and reduce costs further while the USA still collects tariffs. I'll take a 2%-5% reduction on federal taxes over a 10%-25% increase on some foreign items any day of the week including Sunday.

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  • Glug
    replied
    Call this what it actually is - a HUGE TAX INCREASE.

    Where is the money from this huge tax increase going?

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  • fjk
    replied
    I expect it might benefit more people than it harms.
    Doubtful
    For example
    We currently have something like 200k people working in steel mills, and net import something like 30-40% of our steel consumption.
    Let’s be generous and say that all imports disappear and our steel production goes up 100%. That means another 200K steel mill workers.
    But 330m people pay more for everything hat has steel in it (or see less profit in their company,less growth in their investments, etc)

    330m people get harmed
    200k benefit

    This of course ignores people who import steel and lose their jobs, or whose companies/products can’t compete because of the higher cost of the steel, etc. it also ignores the folks who benefit because the unemployed steelworker is now employed and now can afford to buy a new car or go on vacation... Those effects are harder to quantify.

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  • J Tiers
    replied
    Originally posted by 3 Phase Lightbulb View Post
    It will be very interesting to see the net affect to people in the USA from the 25% tariffs. I expect it might benefit more people than it harms.
    THAT probably depends on what you call "harm" and what you call a "benefit".

    it is not making friends..... just as people need friends, countries need friends. We used to have more friends than we do now. The trend is in the wrong direction.

    Escaping the "political", there IS in fact money to be made by raising prices in general and blaming the tariffs.

    And, maybe something will be made here just because it is expensive to import now. That could employ more people, but the tariffs will likely be temporary, and you do not site factories based on temporary conditions.

    Might go the reverse, though, since we (used to) export things, now it is more expensive to export, due to retaliatory tariffs. SO you see companies taking part f their manufacturing overseas to avoid having a US origin on the product. That means layoffs here. So overall, the effect is likely to be on the down side.

    And, it may be permanently harmful, because the chinese, for one, are switching soybean and other farm product purchases to other suppliers, such as russia, and they may not come back when the tariffs are removed. Others are apparently doing the same. Missouri is a big supplier of farm products on the export market, so it hits here fairly hard.

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  • Guest's Avatar
    Guest replied
    It will be very interesting to see the net affect to people in the USA from the 25% tariffs. I expect it might benefit more people than it harms.

    Leave a comment:


  • Black Forest
    replied
    This is how I handle any retail business.

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  • J Tiers
    replied
    It is only "greed" if you are so "entitled" that you think the seller should take a loss so that you do not have to pay more. Sometimes the seller will actually do that, if the change is temporary, or not a large amount, in order to avoid losing customers on a repeat business item. One time sales, not so much.

    But a 25% change is a biggie. Plus, the sellers in china were probably raising prices to deal with the trouble of complying with new rules. Or because they were told to do so to punish the stupid americans as much as possible. Or both. The net increase may be 25% on a larger amount.

    It's actually pretty rude to ask the sellers to take a big hit just so you do not have to pay any more. Not to be too insulting here, bit just WHO is the one who is "greedy"? The one who charges more to cover costs, or the one who expects the seller to absorb a 25% or more price increase?

    Is the seller supposed to NOT make his living just because two governments are d**k-waving? The seller can look forward to losses just because higher prices reduce sales.

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  • smithdoor
    replied
    Let say at wholesale the price is 100.00 and retail price 200.00 with a profit of $100.00
    Today the wholesale is $125.00 If keep the $100.00 profit the retail price would be $225.00 not so bad

    But some are rizing price to $250.00 They now making a profit of $125.00
    A win for retailers too bad for you and blaming on Traffit

    Dave
    Originally posted by DS_park View Post
    Question. Where during the importation and to what value is the tariff collected?
    My assumption was the 25% was collected prior to goods entering in to the country at the value of the goods entering. Could be wrong though.

    example. Pre tariffs, XYZ widget co imports a tool that costs them $1000 a unit. The markup to retail customer is 50% so $1500 is the retail price (pre sales tax).

    Post tariff. Each unit still costs $1000 however an additional $250 is collected at the border. Now what.
    $1725 retail ($1500 + 250 tariff)
    $1875 retail (50% markup on the 1250 after tariff)
    $2250 retail (25% tariff added to 1500 retail)

    Some might jump to the assumption of greed but company might be smart to collect a little extra to set aside if the tariffs suddenly disappear.
    Sent from my SAMSUNG-SM-J320A using Tapatalk

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  • AD5MB
    replied
    capitalism is a bogus word invented by the delusional deluder, Karl Marx

    In a free market economy, a thing is worth what the buyer is willing to pay and the seller is willing to accept. the seller sets the price, the customer decides whether to stop and look or keep on walking.

    "fair" is a really sweet thing to teach kindergartners, who should be over it before they reach adulthood.

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  • Guest's Avatar
    Guest replied
    Capitalism, it's the best operating system ever created for the able-minded.

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  • DS_park
    replied
    Question. Where during the importation and to what value is the tariff collected?
    My assumption was the 25% was collected prior to goods entering in to the country at the value of the goods entering. Could be wrong though.

    example. Pre tariffs, XYZ widget co imports a tool that costs them $1000 a unit. The markup to retail customer is 50% so $1500 is the retail price (pre sales tax).

    Post tariff. Each unit still costs $1000 however an additional $250 is collected at the border. Now what.
    $1725 retail ($1500 + 250 tariff)
    $1875 retail (50% markup on the 1250 after tariff)
    $2250 retail (25% tariff added to 1500 retail)

    Some might jump to the assumption of greed but company might be smart to collect a little extra to set aside if the tariffs suddenly disappear.

    Leave a comment:


  • smithdoor
    replied
    Originally posted by TerryH View Post
    Couple of excerpts from Grizzly emails and statements...

    From an email they sent... "Once we are out of stock, future shipments of these machines will have a 25% price increase due to the tariffs."

    From their tariff statement on their site... "Q: Will the tariff increases apply to items we already have in stock?
    A: Items that are backordered or have limited quantity and are set to run out soon will see an immediate cost increase. All other items will have the tariff price increase applied when we receive new stock from the factory."

    Apparently everything was in limited quantity.

    I get that they have a margin and that the price has to be adjusted to offset the tariffs. It just appears that they said one thing in their official statements and then did something else. Perhaps I'm wrong. I've searched thru lots of lathes etc... and pretty much across the board there are tariff increases. They do show the tariff in a separate charge which is nice so the buyer can easily see exactly how much the tariff is on that particular item.
    They just making more money
    The whole sale goes up 25% now that can cut the profit or just increase by the whole sale by 25%.
    Grizzly is now making lot more profit and blaming on Traffit .
    I seen sites where some increase all price by 25% now.
    Others are doing nothing

    Dave

    Sent from my SAMSUNG-SM-J320A using Tapatalk

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  • Juiceclone
    replied
    greed

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  • TerryH
    replied
    Couple of excerpts from Grizzly emails and statements...

    From an email they sent... "Once we are out of stock, future shipments of these machines will have a 25% price increase due to the tariffs."

    From their tariff statement on their site... "Q: Will the tariff increases apply to items we already have in stock?
    A: Items that are backordered or have limited quantity and are set to run out soon will see an immediate cost increase. All other items will have the tariff price increase applied when we receive new stock from the factory."

    Apparently everything was in limited quantity.

    I get that they have a margin and that the price has to be adjusted to offset the tariffs. It just appears that they said one thing in their official statements and then did something else. Perhaps I'm wrong. I've searched thru lots of lathes etc... and pretty much across the board there are tariff increases. They do show the tariff in a separate charge which is nice so the buyer can easily see exactly how much the tariff is on that particular item.
    Last edited by TerryH; 07-18-2018, 08:49 AM.

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