U.S. to collect 25% tariffs on Chinese woodworking equipment starting July 6

[Edwin Santos]

In fact, why can't that be done in America now -- whether there are tariffs or not?

Simon

Check out some of the videos on YouTube showcasing the Tesla factory and the Amazon fulfillment centers. Heavy use of robotics, automation, all sorts of other technology right here in North America.

I've heard talk that the job loss trends resulting from globalization pale in comparison to the job losses forecasted from automation and robotics. It's serious but I don't believe it will be that apocalyptic. I believe it will be job shifting more than elimination just like how we've already shifted to less manufacturing and more of a service economy in the US.
Edwin

[Pat Barry]

But that won't meet the stated objective of the current tariffs: jobs. Once those robots are in place for phones, auto plants, etc., only the corporate America will see the benefits (profits), but not the workers, nor the consumers, I am afraid.

In fact, why can't that be done in America now -- whether there are tariffs or not?

Simon

There are still workers. Some are more skilled than those the machines replaced, some less skilled. BTW...China probably makes those robots.

[Alex Zeller]

Until it hits I don't know if we will know the real cost. I assume the 25% is on what the price is to the importer. For example it's what Grizzly would pay for the equipment. Things like shipping costs don't count into it. A quick search for the Burt group and I can find a lathe sold by Grizzly for for $1800 that are listed at $1100 to $1200. That, of course doesn't include any shipping. But assuming Grizzly doesn't get a break on that $1100 price that would be less than $300, not the $450 it would be on the retail price. With luck the impact isn't going to be too great but until importers know how much neither will we.

[Simon MacGowen]

I believe it will be job shifting more than elimination just like how we've already shifted to less manufacturing and more of a service economy in the US.
Edwin

Aren't the tariffs meant to shift us back to the manufacturing economy (steel plants, auto plants, etc.)?!

Simon

[Shiraz Balolia]

This thing posted by the OP is real!

As of right now, July 6th, prices on most woodworking machines coming from China will be subjected to a 25% tariff/duty. We will also be forced to raise our prices by almost that much on July 6th to keep up with the cost increase. When and if the tariff is revoked and a date is announced, we will probably also reduce prices on that date to make the equipment more affordable to more people.

Now then, this tariff only applies to products made in China and not to Taiwan. I list these two countries as that is where most of the woodworking machines come from today. Unfortunately, both Chinese and Taiwanese suppliers have been raising prices because of material increases (aluminum, copper, steel etc) even before the tariffs became an issue. So its like a double whammy for us. Taiwanese machines may go up a little as well due to that fact, but no where near the 25% that the Chinese imports will face.

Here's my advice, as self serving as it may sound: if we have anything you want in stock, buy it now before July 6th for the best price. Prices will go up on that day and will also affect items that are on back order, meaning customers that have placed orders at a certain price and we do not have that item in stock, will be affected when that item does come in.

There is no silver lining in this message, except that we do have a very large presence in Taiwan and carry a lot of Taiwanese made machines which will not be affected by the tariffs. I hope that China and USA can agree to something where this could be averted before the 6th, but as that date draws closer, we are beginning to lose hope. Another thing to remember, is that there will be industries worse off than us in this "fight". Almost everything you see at major box stores comes from China and all that will be going up!

[Simon MacGowen]

There are still workers. Some are more skilled than those the machines replaced, some less skilled. BTW...China probably makes those robots.

Or, robots assembled in America from parts imported from China!

Looks like at the end of the day, we consumers are the ultimate casualty.

Simon

[Simon MacGowen]

This thing posted by the OP is real!

Another thing to remember, is that there will be industries worse off than us in this "fight". Almost everything you see at major box stores comes from China and all that will be going up!

Anyone planning to buy a new car, start looking NOW. If the auto tariff is to go ahead, cars from Canada and Mexico will be totally un-competitive meaning down the road (unless and until the tariff is lifted), car prices have to sky rocket (supply & demand). You can't just open 5 new auto plants and assembly lines (assuming you could find the auto workers) in 6 months.

Simon

[Edwin Santos]

This thing posted by the OP is real!

There is no silver lining in this message, except that we do have a very large presence in Taiwan and carry a lot of Taiwanese made machines which will not be affected by the tariffs.

Ironically, China considers Taiwan to be part of China and routinely punishes (in one way or another) those that do not acknowledge this. For example, China recently reprimanded Marriott and obtained an apology because Marriott listed Taiwan and Tibet as independent countries in a survey on their website. This makes me wonder if there will be another dimension of diplomatic inflammation if there are tariffs levied against China but not Taiwan. This is only speculation on my part, but it's fascinating how high the stakes are and how quickly and exponentially complicated it can get.
Edwin

[Edwin Santos]

In light of all this, the vintage tool aficionados may get the last laugh. Good old fashioned American iron made in simpler times and built to last!

[Frederick Skelly]

Anyone planning to buy a new car, start looking NOW. If the auto tariff is to go ahead, cars from Canada and Mexico will be totally un-competitive meaning down the road (unless and until the tariff is lifted), car prices have to sky rocket (supply & demand).

Has anyone seen the specific terms of the tarriffs on cars? Several foreign companies manufacture stateside now - and US automakers rely heavily on plants elsewhere. Will a Chevy imported from Canada be effected? How about a Ford imported from Mexico? For that matter, how about a Honda built in Ohio?

[Doug Dawson]

Woodwork machines will end up being an unintended victim of this tariff strategy. The idea that this industry will come back to North America is unrealistic. The scale is simply not there. Can you bring back some others, absolutely. Once the price creeps up enough North American factories of sufficient scale can automate their plants and compete.

No manufacturer with a lick of sense is going to open up a new plant in the US on the basis of these tariffs, because on the time scale it would take to do so, the tariffs will already have been reversed. So wrong-headed they are. The upshot is, that in the meantime the consumer will be forced to just [censored] and take it. There's no prettier way to put it.

[Simon MacGowen]

Has anyone seen the specific terms of the tarriffs on cars? Several foreign companies manufacture stateside now - and US automakers rely heavily on plants elsewhere. Will a Chevy imported from Canada be effected? How about a Ford imported from Mexico? For that matter, how about a Honda built in Ohio?

One possible scenario:

"About 44 percent of the 17.2 million new vehicles sold last year in the U.S. were imported from other countries, and half of those came from Canada and Mexico. All have parts from outside the U.S., sometimes as much as 40 percent."

http://fox28spokane.com/experts-say-...s-cost-jobs-2/

It would be uglier than what we are seeing with woodworking machines in terms of the dollar value.

Simon

[Wade Lippman]

And that means interest rate hikes down the road.

Normally inflation is caused by an overheated economy and interest rates go up to quiet it down.
In this case inflation will be caused by destruction of international trade and economic chaos. The economy will be badly damaged and interest rates should go down. At least that is how I see it.

[Wade Lippman]

But that won't meet the stated objective of the current tariffs: jobs. Once those robots are in place for phones, auto plants, etc., only the corporate America will see the benefits (profits), but not the workers, nor the consumers, I am afraid.

In fact, why can't that be done in America now -- whether there are tariffs or not?

Simon

20 years ago the president of Stanley Hardware showed me some machines to make screws that hadn't been used in years because they changed to imported screws. I said that was odd; they were fully automatic so labor wasn't an issue, and questioned why imported screws would be cheaper.
He said that it hadn't occurred to him and he didn't know how to answer me.

These things can be complex.

[Simon MacGowen]

Normally inflation is caused by an overheated economy and interest rates go up to quiet it down.
In this case inflation will be caused by destruction of international trade and economic chaos. The economy will be badly damaged and interest rates should go down. At least that is how I see it.

Let's hope so.

But whose economy will be damaged? The Euro's, Canadian, Mexican and Chinese?

According to the logic of the impending trade wars, America would win them with ease and its economy should be the one that benefits.

When persistent inflation, regardless of who causes it, and low unemployment rates are recorded, "it's the Fed's job to... a tightening, or rate increase, attempts to head off future inflation." https://www.investopedia.com/univers...inflation3.asp

When commodity and day to day goods prices increase, the pressure to increase wages also goes up. When everything goes up in prices, Fed. would try to put a break on the hot economy by hiking the rates.

I am no economist, but that is how I see it from the consumer's point of view.

Simon