The Ironic Boomerang ... Import Duties on Chinese Products ...
I have had a few days to think about these import duties I am suddenly being forced to pay on all the parts we need to keep Creality 3D Printers alive and well. From a small operational perspective, I am the one paying not the Chinese firm that I purchased the products from. So remind me, please once again. Who are these duties actually hurting?
Now I am not an economist, nor do I pretend to understand what the hell is happening nowadays (i.e. I am not going to pontificate on topics such as this.) All I know is now I have to raise prices again. I have less money to put back into inventory now that I have to pay the duties.
I understand the concept of import duties and protecting markets from predatory behaviour but the ugly reality is that they are hurting everyone who uses or purchases products made in China. That would be companies that are most likely, US companies.
In the case of Creality technology whom by some strange coincidence just happens to hail from China, well they are the sole source for everything of course. Really! What are we supposed to do when there is some kind of embargo and we cannot get new printers, repair parts?
Meanwhile the only possible impact on China that I see from the front line is that they might have less sales because more of the money we have to spend went to pay for the import duty instead of products.
Gloating about "making China pay!" means that in reality you are gloating about making an American pay...
I don't have a solution and I don't have any fiery rhetoric. I had a business model based on ready access to products that are made in only one place. Now I am happy to hear abou how we will magically replace everything made in China with American factories and manufacturing plants, filled with American workers earning a living wage.
I am always an optimist when it comes to the future but I am more of a realist and I know for certain we can't simply replace China and I think engaging in a blanket tariff is only going to hurt the US even more, much like shutting down the economy was also overreaction.
If you are going to have tariffs it makes sense to put them in piecemeal as you need incentives for everyone to "Buy American", buying products that are actually available here in the US. This is not the case with almost everything we use on a daily basis, especially anything made from electronics components.
Right now for me and you it means prices are going up. I made a guess and saif at least 25-percent. We will see.