China Tariff Gets Real

tortugaranger · « **on:** 15 May 2019, 01:37 pm »

We buy our displays from a US company in Chicago. We received a recent quote for a batch of their displays - total cost $2400. Plus....China tariff payable to the US government of $600 additional.

I did not know that the US company had their hardware made in China but no big surprise there. Call it what you will, it's effectively a 25% sales tax. If we could buy an equivalent display NOT made in China at the same price, or preferably made in the US, I would. But no such display exists as far as I can tell.

I try to keep an open mind and see the bigger picture but I'm hard pressed to understand how this is good for our economy or for the audio industry.

Meanwhile in the near term we will eat the cost increase and keep our product prices the same.

geowak · « **Reply #1 on:** 15 May 2019, 02:04 pm »

I do respect what you are doing and I thank you. If anyone lives in America, I cannot help but to think of this analogy:
Analogy: Upon arriving to your prison cell, your cell mate who’s name is Big Bubba and is 270 lbs and 6’6 asks you if you want to be the wife or the husband. It does not matter what you say, you know what’s going to happen.

kingdeezie · « **Reply #2 on:** 15 May 2019, 02:27 pm »

I'm sorry that you are having to eat the cost increase, but this thread seems destined for the IGWB. If you were going to eat the cost, it may have been better to do so in silence.

There can't be serious dialogue about this issue without politics involved.

Good luck with everything. Like many, I hope the eventuality is a prosperous resolution for both American consumers and businesses.

ricmon · « **Reply #3 on:** 15 May 2019, 02:33 pm »

Quote from: kingdeezie on 15 May 2019, 02:27 pm

I'm sorry that you are having to eat the cost increase, but this thread seems destined for the IGWB. If you were going to eat the cost, it may have been better to do so in silence.

There can't be serious dialogue about this issue without politics involved.

Good luck with everything. Like many, I hope the eventuality is a prosperous resolution for both American consumers and businesses.

Ditto!

witchdoctor · « **Reply #4 on:** 15 May 2019, 02:54 pm »

You made the right decision to absorb the expense. I hope you can find a true domestic supplier, not one that is just a middle man for a foreign manufacturer. You though you were buying American.

lokie · « **Reply #5 on:** 15 May 2019, 03:07 pm »

Another solution would be to add a temporary "tariff surcharge". Spread the pain around a bit.
I have no problem paying a bit extra while things are sorted out. Like what was mentioned, hard to discuss w/out politics, but I'm glad to do my part for the long term benefit.

rollo · « **Reply #6 on:** 15 May 2019, 03:09 pm »

Try other Countries like Vietnam, Thailand, etc. Part of doing business right now. You can write off the loss at the end of year. No real loss just an inconvenience until settled.

charles

tortugaranger · « **Reply #7 on:** 15 May 2019, 04:00 pm »

Quote from: rollo on 15 May 2019, 03:09 pm

Try other Countries like Vietnam, Thailand, etc. Part of doing business right now. You can write off the loss at the end of year. No real loss just an inconvenience until settled.

charles

The challenge with sourcing something like this from other countries is that it's apparently not available. We use a 246x64 bit OLED display panel which after much research appears to have been developed and is being produced solely in China. Many display companies use this panel and repackage it as their own but they're in turn either based in China or are US based buying from China.

We could choose to move away from this particular size/type of display in hopes of sourcing a non-China replacement but that would require a huge investment in time/effort/money to adapt to new hardware including the associated software development. We spent a ridiculous amount of time integrating the current display into our preamp products. At least for now, we're going to stick with this item and try to ride out the current insanity.

2bigears · « **Reply #8 on:** 15 May 2019, 05:00 pm »

the beginning of the end. Kiss the fake economy good bye very soon. This really is peanuts to what is on the near horizon ,,,,,

Rump is such an idiot

Brettio · « **Reply #9 on:** 15 May 2019, 05:19 pm »

I would say that the idiot is the one that has to bring their worthless political opinion into the discussion.

ErikMi · « **Reply #10 on:** 15 May 2019, 05:33 pm »

So Mr. Brettio, Mr.2bigears makes a comment about our current assclown of a president and you turn it around and call him an idiot.. Mr.2bigears is correct, I guess in some other parallel universe trump isn't a weasel, but in this one he sure is; and those that think he's doing a good job are as evil as he is.

tortugaranger · « **Reply #11 on:** 15 May 2019, 05:38 pm »

Come on guys. Let's not go to the dark side. Save that for Facebook et al

Emil · « **Reply #12 on:** 15 May 2019, 05:39 pm »

Quote from: tortugaranger on 15 May 2019, 05:38 pm

Come on guys. Let's not go to the dark side. Save that for Facebook et al

You really didnt think it would come to this?

tortugaranger · « **Reply #13 on:** 15 May 2019, 05:47 pm »

Quote from: Emil on 15 May 2019, 05:39 pm

You really didnt think it would come to this? :duh:

Always looking for opportunities to observe thoughtful restraint. :thumb:

Freo-1 · « **Reply #14 on:** 15 May 2019, 05:51 pm »

The real issue here is theft of intellectual property. The Chinese (government) are not proper trading partners, and they think it's OK to lie and steal IP. This ties right into security concerns.

Sad to say, this is LONG overdue to get fixed.

mr_bill · « **Reply #15 on:** 15 May 2019, 06:01 pm »

Freo is right.

Emil · « **Reply #16 on:** 15 May 2019, 06:07 pm »

Quote from: mr_bill on 15 May 2019, 06:01 pm

Freo is right.

Of course he is.

Loki57 · « **Reply #17 on:** 15 May 2019, 06:09 pm »

I thought politics was forbidden on this forum.

Emil · « **Reply #18 on:** 15 May 2019, 06:16 pm »

Quote from: ErikMi on 15 May 2019, 05:33 pm

So Mr. Brettio, Mr.2bigears makes a comment about our current assclown of a president and you turn it around and call him an idiot.. Mr.2bigears is correct, I guess in some other parallel universe trump isn't a weasel, but in this one he sure is; and those that think he's doing a good job are as evil as he is.

That reminds me to get my robe and hood dry cleaned for the big cross burning tonight.

tortugaranger · « **Reply #19 on:** 15 May 2019, 06:16 pm »

Quote from: Freo-1 on 15 May 2019, 05:51 pm

The real issue here is theft of intellectual property. The Chinese (government) are not proper trading partners, and they think it's OK to lie and steal IP. This ties right into security concerns.
Sad to say, this is LONG overdue to get fixed.

I get that. Agree there's a problem that needs fix'n.

And if there were hoards of economists lining up behind these tariffs telling us they agree that this is the right way to go about getting that fix'n done I'd be a whole sight more supportive of that extra $600 for a batch of preamp displays.

After looking high and low for clear evidence that tariff's will work I've only been able to find 2 truths that most economists agree on...

1) Free trade is generally a good thing for most people.
2) Tariffs are generally a bad thing for most people.