Catherine46587
9036
456
12
#tariff #china #made_in_china
May 6, 2025 7:23 AM
Catherine46587
9036
456
12
#tariff #china #made_in_china
djangojazz
It's like a tsunami. The ocean right now is going with empty ships and warehouses. It is going to come back with a giant wave of no work, no products, and no companies. And if people are stupid enough to not see it's Trump, we will deserve it.
CrumpetsWithHoneyAreCrumpetsWithBeeVomit
I understand.
dedpaen
Have fun selling your mom n pop business to a huge company.
IdrinkandImakethings
Actually the majority of people do understand how tariffs work. But a lot didn’t vote in the last election and the blunts took over.
Blame the non voters
WaxedApple
Fun fact: America does not have enough tooling manufacturers to even build enough new factories in the first place. They'll have to import machine tools from China
TofuGolem
Gosh, if only millions of voters, herds of experts, and Trump himself had warned Trump voters what would happen if Trump got elected.
Osiricus
I wonder how he voted.
Munchman347
Not sure about the costs involved, but can you have Chinese goods trans-shipped through a country that hasn't had a 'Tax' slapped on it yet?...
veesee
https://en.m.wikipedia.org/wiki/Brian_and_Ed_Krassenstein
KillingTlme
Donald Trump understands Tariffs. He looks forward to letting his friends buy your factory for pennies on the dollar.
TyWebbsChinDimple
The pain and suffering is the point.
cannibalthemusical
Guys we really need to stop screening shooting text blocks with no source and pretending they hold water.
I'm 100% sure the tarrifs are causing this type of story.
But anyone can write anything and put quotes around it.
Verify. Your. Shit.
Hukkie
If this man did not vote for Trump, I feel sorry for him and his employees.
If he did vote for Trump.... you get what you fucking deserve, but I still feel sorry for his employees.
veesee
Doubtful he voted trump; https://en.m.wikipedia.org/wiki/Brian_and_Ed_Krassenstein
But also this is not his business.
Shizzstains
Couldn't care less. Most small business owners vote Republican for tax breaks. Fuuuuuuck them all. They voted for this.
SocoFox
Destroying small businesses is the corporate oligarch way. How else can they suck up even more wealth?
All part of their plan.
BloodLoveRhetoric
These tariffs are still obviously illegal, and I don't understand why anyone pretends otherwise.
MrRandom314159
I think bringing manufacturing back to the US is a good idea, but to create economic conditions to do so without killing people is difficult
MrRandom314159
If I'm interpreting the downvotes correctly...I'm not saying we should accept people will die.We need to be careful in the process.He's not.
boognish115
It’s classic Trump economics. It sounds good on TV but trying to get Americans to work for third world wages is stupid. And he’s trying to deport all the people that are willing to.
InfocalypseRising
Is he talking about himself? Because he's either quoting himself which is weird, or he's very conspicuously not providing any source for the quote.
veesee
I dont think he's talking about himself. I can only find web based services hers involved in. So I'm assuming it's a quote from someone else and likely paraphrased from a conversation they had.
multibeasthillsdale
I bet he was so stoked to vote for Trump!
kenultimate
My first thought…
Eramik
"blue check" checks out
whatsisname
FWIW I think the poster is quoting someone else.
jeejeejerrycotton
If the product was worth shit, he'd be able to sell it elsewhere.
wobblecopterrrr
you're totally right! you should buy his inventory and re-sell it!
bigdix69420
Lol this user is trying hard
w0rkh0lic1
And still failing
SilverFoxChaser
Reread the post then think about your response.
Ikwilstroopwaffels
Reading is hard. Maybe ask an adult for help sounding out some of the harder words, sweetie.
Mr21782Man
$10 + $15 tariff surcharge says that Army Vet voted for Trump because "the libs are trying to destroy the country".
veesee
Actually not correct. He regularly voiced opposition to trump (along side his brother).
He was banned from Twitter for a while over it and brought a lawsuit against Trump for blocking him because it was against free speech since Trump was in public office and Trump posting on Twitter was on a public forum.
Howver I have yet to find what he manufacturers. Everything I can find is web-based services.
UnrealEstates
As an Aussie who does not understand this more than what I read online... Who sets the price the tariff is charged at? Also, I heard second hand goods are not covered.. so if you sell them to someone over seas, who then sells them to you? (Or, tranship them through a country with a lower tariff rate.) Finally suggestion, just refuse to pay the illegal tax and force them to take you to court.
RevengeIsIceCream
Anything imported is covered, so your second hand idea did not work. What they mean with "second hand not impacted" is that things that already are in the US and being resold will not get any extra tax, since it is an import tax. But if you import second hand items, they would be covered by tariffs.
gft8gd5khn101
Trump the asshole sets the tariffs for each country and product type. Tariffs are paid by the business owner or customer importing from abroad (like on temu). Businesses are finding the tariffs too high to turn a profit - they either shut down or find a domestic supplier - which is very very unlikely for most products. The prices for Americans skyrocket and empty shelves appear. Every person involved loses.
MeestowKitty
They hold the goods in port until the tariff is paid. You can't refuse. I wish you could.
UnrealEstates
Bummer. What about the price the tax is based on?
MeestowKitty
That'll likely be based on the contract you have with the manufacturer. They state the price of the goods sold on the shipping manifest. Too many different layers and people involved to fudge it, and the gov could just call out that the goods are listed at too low a price compared to your COGS on your books.
lbargomancer
The tarriff has to be paid before customs releases your imports to your custody, like paying cash for a pizza delivery.
lbargomancer
Yes, getting your stuff shipped through a lower tarriff country can help, but not if your order is already on a ship that left from China.
lbargomancer
Tarriffs are charged on the price of the goods, so a 145% tarriff on goods worth $100k means you pay $145k extra to the gov't to receive it.
Filolial
I might be misunderstanding something, so help me out. They can still import from the chinese factories, but it will cost significantly more to do so, this increase in costs then gets added into the product which the consumer pays for? No doubt you will loose customers and revenue, but if the product isn't produced in America your competitors will have to deal with the same price increases. Anyway in the end small business owners and consumers will suffer while the government is taking the money
yeahhedugit
But how else will we be able to have a tax cut for billionaires?!?! Yachts don't pay for themselves, you know.
Righteousdew
Lose*
IndependenceHallPhiladelphiaPA
this product has no competitors. if the business owner imports the product, he has to pay the tariff up front, at the port. he likely cannot afford to, literally does not have the money. so its irrelevant that he passes the cost on to the end consumer. he doesn't have the money to import the product in the first place.
cmdshift3
Most small companies run on credit and without cash on hand, they can’t float the cost of accessing their goods. Even if they raise prices for the tariffs, they’ll also have interest on the credit until their increased return starts coming in to pay it back down. Unless a small business is turning a profit every quarter, they don’t generally have enough cash for increasing operating costs like trump’s tariffs.
INeedMoreGifMeMoreJustOneMore
Depends on what the product is. Could be helping a niche product segment.
georgejimmydoodle
There is reporting of one small business owner whose shipment from China increased in cost by $150,000 due to tariffs; it left China costing $X and arrived in the US costing $X+150,000. The business doesn't have that liquidity, and so he closed shop, laid off every employee and walked away from the shipment.
REOJackwagon
Maybe this will help.
People try to make sense of his policies and actions as if he's working towards some improvement down the road, larger plan, etc. He's NOT
It's not about getting the product made in America, for some reason he's decided he wants to do all he can to be well known, and make people suffer as much as he can.
All of his decisions make sense when compared to this guideline.
MadamPuddifoot
Lose
GasBandit
Ain't nobody gonna pay $600 for a retroid handheld
Sneeje
It's existential. The business owner owes the tax the moment the items you import reach US soil. So yes, you may be able more than double the price, but you have to FRONT the cost. So goods you imported thinking they cost you $50K now cost you 125K. Where is a small business owner getting that 75K?
OgreMkV
If your margin is $1 on a $10 product, then a $10 tariff means you lose $9 per sale.
Now you MUST nearly double the price of your product just to break even. Think about the things you buy. How many of them will you buy at double the cost?
If they are durable goods, then you might buy one and make it last longer than you normally. If they are goods you use up, then maybe you do without or buy an alternative. Either way, the company revenue drops. If it drops by more than half, it still loses
SoberAndBored
I watched a Youtube video last week about a guy who made wargames for a living. He sold them all upfront which meant that instead of a $120,000 profit, he made a $200,000 loss, and because all of them were sold upfront he had no option to increase his prices. On top of that, he had to pay the whole $200K in one go, so if he hadn't had it, no-one would have got their game. Going forwards: he sells through Kickstarters. His prices will have to increase massively, and he had to get to 30,000 pre
SoberAndBored
orders for it to be worth doing. He was talking about how historically his company made between 2 and 9 games a year, depending on how many pre-orders they got for each game. How many will he make in future, if everyone has to pay twice as much? Will he risk trump fucking him over again with another tax increase, or will he just close down?
thedarkwoodsman
I think they're viewing a 150% increase as something that would make the product unsellable. So they aren't willing to pay the 150% knowing they will net negative
BuiltonSin
I love the explanations, but everyone is ignoring the elephant in the room. Large corporations bribed Trump to be exempt from tariffs. Sure ask the rules below still apply, but this is the main reason small to medium businesses will fail. Not enough bribe money to the king
LordHelmetTheThird
Let's say you ordered products and the whole shipment cost you $100k. Since ordering and having the order fulfilled, the tariffs were announced. Now, to get that shipment you've payed for, you need to pay additional $145k to get it from customs.
Let's say your profit margin is 30%. Do you think you can stay profitable if you lose money on each product you sell? Or do you think people keep buying if your prices triple? For most it's no and no.
So you go close down and abandon the shipment.
LordHelmetTheThird
And this same thing happens to all your competitors. So, in few weeks every company selling these products has stopped ordering new products and once their existing inventories run out, they too go out of business.
What happens then?
This product either a) disappears from the market, or b) is sold at huge premiums. Meaning that those products which aren't "must have" will disappear and others will become much more expensive.
poundingCode
Customers who bought at X may be unable or unwilling to pay 2X.
Thornaxe
Society can survive just fine without most of the widgets and mcguffins we have. Especially in the short term. A massive price increase on these goods will utterly destroy the demand. So the small business owner COULD pay a pile of money up front for tariffs, only to see his inventory rot in storage because 90% of his sales disappeared due to massive price hikes.
inboxmefoxes
For small tariff increases, yes. But virtually no consumers are going to pay 145% more for the majority of products. Additionally, the business absorbs that cost up-front, and must attempt to recoup the cost. My little book company just got hit with a $5,000~ tariff bill. We will barely survive. Bigger companies are forced to eat many times that amount.
biggiej
Businesses also maybe cash poor and you need to pay the full tariff upfront, for a small business that alone can kill the company.
NVGoddesscottage
But if you’re running a lean operation the hike in price caused by the tariffs are likely untenable. We’re not all rich, even business owners.
bad1080
if your product isn't a necessity, people will postpone the purchase as long as possible to see how the situation will develop.
Cebrail
I'm not sure where the misunderstanding is. Unless your product is something vital for 'life', people will simply chose not to buy it if you raise the price by 140%. And in cases like this, there are no 'competitors'
If you wanted a.....custom tong for your grill and it cost 100$ but would last 10 years, you might get it. But if it tomorrow cost 250$ ?
dudeinjapan
This was an interview on The Daily podcast from The NY Times. She created and sells this placemats for babies that sticks to the table for minimum mess and similar things made out of high quality sterilized silicone. She can sell them for about $35 and the price on arrival was s about $22 ifrc. If she had enough cash in hand (which she doesn’t) to import them, price on arrival would be $54 ($22+ $22 x 1.45) and she doesn’t think anyone would buy it a kids placemat at $67 no matter how nice.
dudeinjapan
https://podcasts.apple.com/jp/podcast/the-daily/id1200361736?l=en&i=1000703443731
keys79
It isn’t simply about raising prices to cover the increased tariff. You have to pay the tariff upfront to get those product into your warehouse here. Because that cost just massively increased, a small business owner might not have enough reserves to cover it out of pocket. The government will literally hold their inventory hostage on the loading dock. Big box stores will survive (by eating the cost and raising their prices). But many small companies will have no choice but to fold.
LoudBirb
Yep. Or the product is low margin (meaning the MSRP will be impacted significantly by more than doubling the cost) or inelastic (meaning customers can live without it and will simply stop buying it if the price increases by much).
LoudBirb
*elastic.
Shoot, I can't believe I didn't notice that until just now.
SilverFoxChaser
Depends on the product and previous contracts in place. If he is obligated to sell lots of X product at a fixed cost then he'll be bankrupt if the cost to produce that product suddenly becomes twice as expensive.
shutupmark
It’s a she, and the product is a plate for babies that suctions to the table and you can clip toys to. If her price increases by 20%, she will lose almost all of her customers because it’s a non-essential item (she tried this once). Currently the tariffs would require her to increase cost about 175% to break even. If she doesn’t increase cost she sells at a loss and loses money until bankruptcy. (I listened to a podcast about this particular woman and that’s a rough summary)
Filolial
Hadn't even occured to me yet that fixed-price contracts exist, you either sell at a loss, or declare bankruptcy... or leave your stock in China and hope for the tarifs to end before your company does. Good point.
Vter1
There are container ships sitting in port and anchored at sea, waiting for the situation to resolve. Eventually the cost of waiting will be more than the shipping company can bear and product will be dumped so they can take new freight. I bet the sea will be full of random loot crates if this goes on long enough.
Solkanarmy
you'd have a clause in there to allow adjustment for force majeure, surely, or if you don't you will from now on... maybe "farce majeure"?
FlyingInABlueDream
Even if it's not a fixed price contract, suddenly having a 140% increase in taxes on your material is not something most small businesses are equipped to deal with. It's a large amount of money that you have to come up with before you can take delivery of your stock, and then there's no guarantee that the consumers will pay the increased price. I can understand why business owners would be unwilling to take the chance
SilverFoxChaser
Yea but I didn't feel like having to explain that small businesses typically only make a single digit profit margin on most sales to potentially combative responders.