Real life tariff effects

I have a customer, small business with about 15 employees. They import various small parts from India that are assembled together into the products this company sells in the US. Customer used to import th er parts from China, but switched to India after the 2018 China duties went into effect.

Some of the parts are subject to 50% steel or aluminum, but most aren’t. If products are subject to the steel/aluminum duty, he won’t get hit with the 25% reciprocal or 25% Russian penalty. Company owner called me after he got my email announcing the 25% Russian penalty. He was nearly in tears. He will have to pass these duties along to his customers and he’s not sure if they will accept price increases.

It’s not possible to buy these parts in the US. They’re not made here at all. It makes no sense for a smalll business to attempt to manufacture these parts. Customer is not sure his business will survive this. if his business goes under, that’s 15 people that lose their jobs besides the owner. Company is 25 years old.

That is what these tariffs are doing in the real world.

Thank you for reporting this, Tradd. I know anecdotes aren't real research, but data and lies we hear on the news aren't real life. It would be great for someone to collect these kinds of case studies on the consequences of Trump's "beautiful tariffs. If we have enough of them, a credible case can be made to pressure Trump to revoke them.

That's just so awful. Sickening. You know there are more too.

It's causing my fire department some grief.

And as an individual consumer, I have decided to simply not purchase some planned high-dollar items that are sourced from overseas due to the tariff upcharge. There are no US suppliers of the items I wished to have. I will probably just purchase them in person in Europe.

Bae, fire dept can’t get needed gear or it’s too expensive?

Quote:

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Originally Posted by Tradd

Bae, fire dept can’t get needed gear or it’s too expensive?

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A bit of both.

One example: we are about to replace and/or refurbish 8 fire engines, 2 ambulances, 3 water tenders. Prices have gone up considerably as some of the components and materials are made overseas. Availability has been pushed out from 1.5 years to 2->2.5 years. We were in the middle of preparing a bond offering for this effort when all of this nonsense dropped chaos into the planning and analysis process. And I suspect if the chaos continues, the new numbers we are asking for have some likelihood of being too low, and I suspect the delays to delivery will only grow. I'm also not certain the voters will support the bond at this new price point, we need a 60% yes vote in the November election.

Another example is some of the quite expensive, sophisticated medical equipment we keep in our ambulances, which also all needs replaced, is made overseas and not in the USA, and the already-high costs are going up. Some of the inexpensive consumable stuff on the ambulance is made overseas as well, as we discovered during the COVID period and experienced the severe supply shortages that caused.

Combined with Federal grants drying up for some of this task, we're basically screwed.

After more discussions with customers today, I’m guessing at least one will go under by the end of the year, solely due to the tariff situation.

This is all very worrisome.

Although I could not link the article from WESH news, Seminole county, just northeast of Orlando is citing the exact same scenario as Bae describes. No doubt happening throughout the country.

who did not know this would happen?

and where will the money be spent? Paying down the deficit? I doubt it.

Philosophically speaking only, how much financial responsibility should the Federal government be giving for local governmental services such as Fire protection and EMS? I realize local budgets have this Federal help baked into their budgets and it all may be tied to Federal regulations. If the Feds require certain standards, they are granting money to help meet those standards. Maybe, I don’t know.

But in theory, I do not like local government services depending on the Feds for funding. I realize any retraction from this enmeshing of federal and local dollars would be painful and rake lots of time.

to Flowers’ point, doesn't look like these monies will be applied to the federal deficit and that makes me furious.

As an aside, our fire protection services in my tiny town is not funded by taxes, it is privately funded, and I do not understand how that possibly works but it seems to work, at least judging by the very nice *TWO* newish brick firehouses in town. We are “billed” around $60 annually which we could choose not to pay. Emergency visits work like this: if you need fire truck, they come to your house at no charge if you have paid the annual bill.if you havent paid, they come and later charge you a couple hundred bucks.

EMS services are different, that is funded by taxes.