Saw a recent local news clip on how tariffs have led to increased cost of raw materials & impacting many business areas such as home construction & many steel and aluminum based companies. Even Coca Cola claiming the need to raise price due to increased price on raw materials. The Dow market certainly responded negatively during all the tariffs talk but seems to be recovering now. Hiring is still strong with low unemployment. In general observation there seems to be a lot of construction activity. Any business owners noticing the impact or others seeing the impact ?
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My initial feelings are that that is a BS cop out out reason for raising prices. Coca Cola pays between $0.01 and $0.02 per can...it is pretty easy math to do to see how much a 10% tariff raises the cost of a coke but I am betting that is NOT the amount they will go up! I would gladly pay a penny more per 12 pack to get our country headed in the right direction but it seems like I a constantly being asked for more money and things are getting worse instead of better and I am funding things I do not support!
I do understand material cost increases will have to be passed along to the consumer but it seems like what usually gets passed along is way more than just the tariff price.Last edited by Cantcatch5; 08-01-2018, 05:59 AM. -
There is always more than the extra cost of the tariff passed along. There is the cost of more tax professionals to make sure the company is on the up and up. Then there are health benefits for those new people. There are advisers who get hired to determine where the best place to get aluminum will be in the future. The company will have to hire more people to maintain company records. Companies will hire people to make sure less aluminum goes to waste. There are new federal employees hired to make sure companies are complying. Those people need to have supervisors and benefits too.Originally posted by Cantcatch5 View Post
That is why people don't like the idea of adding tariff's.Comment
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We deal in construction/oilfield equipment and some of the companies we represent have started raising prices.Comment
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My china factory just lost a 1.4 million(USD) contract from us because of the Tarriffs last week. China is feeling the heat.
They tried to hit us in soybeans only to see the EU pick up that business. Now they are relying on Brazil to supply them...and Brazil doesn't have enough.
This is exactly how all this should work when you are being taken advantage of.Comment
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Lot of folks around here are taking it on the chin. The last few years have been bad for agriculture and this tariff deal will probably put some guys out. Bad deal.Comment
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Prices are up but so is business, so not hurting us, probably be our best year!Comment
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I work in the fabrication business, mostly highway products like control cabinets, signal light and solar panel hardware, etc., and about 90% aluminum.
Before the tariff, our cost for aluminum was around $1.40/pound. We are now paying around $2.50/pound. Speculators and middlemen turned a 10% tariff into a 70% price increase.
Since the tariff, our sales have dropped by half. Many long term State highway contracts contain a clause that provides for reimbursement if material costs increase more than 15%. More money being spent that was not budgeted for has all but halted new orders.
I understand what Trump is aiming to accomplish, and something needed to be done, but it sure is hurting a lot of manufacturers right now that depend on raw aluminum and steel.Comment
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There is one positive about tariff's in my opinion. The people that make money but don't pay taxes. Drug dealers, people that live on a cash basis. (immigrants), and the rest of us are all going to pay more for stuff. But the people that don't pay income tax, but still buy stuff - will be contributing to our taxes in the form of tariffs and higher prices for stuff. in time we might see even more money going to the government.. This would be good IF the government used the money to pay down the national debt. One can hope anyway...Comment
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Originally posted by Cantcatch5 View Post
It seems when prices go up because of fuel or other goods they never go back from when the prices level back out. I know the company I work for raised delivery charges when gas was around $4.00 and they never went back down when gas went to under $2.00.
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I've been waiting for a few Grizzly tools to come into stock, to order ... most of them are made in China. One of the ones on my list was hit with a 25% price increase due to the tariffs. I'll be shopping other brands to see if it's still worth the wait to get the Grizzly vs Jet or Delta.Comment
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The new tariffs cause me to bust my materials budget and also to bust on my major equipment budget, but we are making money still and signing new projects. Our contracts moving forward will all have rhetoric specific to tariffs to help buffer a scenario like this. We had a contract signed but engineering took 1.5yrs to complete. This tariff hit right before we bought equipment and materials. Bad luck on our timing. On the bright side of moves this admin has made, the tax law passed allowed for a profit sharing bonus for our employees as well as an upgrade in healthcare service.Comment
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