Total Tariff On China Now 104 percent

[Dave D]

The Dollar Tree is now the Two Dollar And Four Cent Tree.

Under President Biden it became $1.25 tree. 

We will see what it becomes.

[Dave D]

Except the people to make those things.  We do not have the workforce that is willing to sit around and sew materials or screw and glue things together or box items for little money per day.  Attempting to replicate that feat would only make those items ever more expensive than you can imagine.

I think this is true and it’s something many don’t consider. But we will find out.

https://x.com/damengchen/status/1909288019750011006

[falco]

China has all the ingredients to manufacture every drug on Earth, including Fentanyl, yet there is zero drug problem in China.

Why? Discipline, commitment, absence of obesity, wokism, strong family values, no Black people, no Muslims, no proud homosexuality — in short, the unity of a population is the most incredible strength of this country, which has surpassed the Americans on all fronts.

Get your plane ticket and go visit China while enjoying it endlessly.

Repression.

[LurkerNoMore]

So a 90 day pause now?  Are we having a tariff party or what?   This is becoming the Little Boy That Cried Wolf all over again.

[Brenda Steunbeer]

Germany tried this, china took a page out of their book and showed its success. Had Hitler not killed Jewish people he’d have probably been left alone and ruled a united Europe.

Killing the most intelligent people on the planet was a very bad mistake. Sometimes wars are won by scientists, not by soldiers. Something Der Fuhrer overlooked. Plenty of Jewish scientists worked on the Manhattan project.

But the one religion, one culture, hard work and disciplined ways of living functioned well.

[Coach is Back!]

So a 90 day pause now?  Are we having a tariff party or what?   This is becoming the Little Boy That Cried Wolf all over again.

Are you following the left narrative "Trump caved"? simple yes or no will suffice

[Irongrip400]

Thread title needs to be updated as the tariffs move. It’s at 145% now.

[funk51]

Funk is extremely upset.His real name is Lee Fung  and lives in Shanghai.

   

    Oh NO outed, you're not supposed to use real names on here.

[Humble Narcissist]

Under President Biden it became $1.25 tree. 

We will see what it becomes.

That's right, it did.

[LurkerNoMore]

Are you following the left narrative "Trump caved"? simple yes or no will suffice

I am following simple facts that you can't dispute.

[Dave D]

I am following simple facts that you can't dispute.

I know tariffs are bad,but why didn’t President Biden undo all the tariffs President Trump put into place?

[Coach is Back!]

I am following simple facts that you can't dispute.

I stated a fact, dippy

[loco]

"But what often goes unnoticed is President Biden’s role in continuing President Trump’s first trade war. In fact, more tax revenue from the trade war tariffs has been collected under Biden than under Trump."
https://taxfoundation.org/blog/biden-trump-tariffs/



"The Biden administration said Friday that it has finalized tariff hikes on certain Chinese-made products that the president first announced in May.  Trump implemented sweeping tariffs on about $300 billion of Chinese-made products when he was in office. President Joe Biden has kept those tariffs in place and, after the USTR finished a multiyear review earlier this year, decided to increase some of the rates on about $15 billion of Chinese imports."
https://edition.cnn.com/2024/09/13/politics/china-tariffs-biden-trump/index.html



"Back in 2018, lawmakers of both parties greeted President Donald Trump’s decision to slap tariffs on Chinese imports with widespread derision.  Six years later, most members of Congress are applauding President Joe Biden’s extension — and in some cases, expansion — of those tariffs, if not calling for him to go even further."
https://www.politico.com/news/2024/05/15/biden-tariff-reaction-trump-00158043

[funk51]

 

   listen to the great wiseman joe rogan only he speaks the truth.

[LurkerNoMore]

I know tariffs are bad,but why didn’t President Biden undo all the tariffs President Trump put into place?

Some he did.  Some his expanded, some he reduced.

[Dave D]

Some he did.  Some his expanded, some he reduced.

I know but I asked why didn’t he get rid of all the tariffs because they’re bad.


This is rhetorical. I know you don’t have the answer.

[Mayday]

Had discussions in the sandwich factory on this and had multiple colleagues call to get my read and advice.

I believe 98% will continue producing in China and warehouse, hoping to wait out tariff changes. BUT we know during Covid it was logistics constraints that fucked the entire market with shortages and drove inflation.

We also don’t know if China will put on go slows to exports which is an economic tactic….. ie shortages = inflation to fuck with the US.

Therefore regardless of today, do not store in China but ship to other warehouses and eat the cost. Redirect later on once tariffs are reduced. Use air freight premium to reduce time in transit = less time exposed to tariff hike.

Expect this to last longer than you might like (>48hrs). Expect the US to spend 90d resolving EU and APAC tariffs to acceptable outcomes. Then expect US-EU-APAC to hit China at the same time and cause all regions to implement China tariffs as a result.

Don’t lead the reprice in market. Let the big boys lead. Lots of other stuff.

I banged on in 2020-21 to buy your wants then because it’s all over now. We already moved some out of China but it’s not many lines. We can’t retool in a month,  many of the variants of products you see on shelves will vanish, never to return. The retool will be so costly we will consolidate products. Eg 20 skus will become 5.

[mphgrove]

Here’s the thing that’s going to come back to haunt us on the tariffs:  we are the ones paying into the government coffers. Just like the diner in a restaurant, it is the buyer who pays the tax. So tonight at the docks in LA, Savannah, Long Beach, when Customs agents are there to finalize the upgraded invoices for Costco, Target, Walmart, or the Dollar Store for the orders from Chinese factories, it’s our retailers who are footing the bill (not the Chinese factories). Once that all really sinks in, the reality is going to hit us.

And who thinks our retailers aren’t going to pass it on to us?

[jude2]

Are you following the left narrative "Trump caved"? simple yes or no will suffice

Can't believe they are going with this narrative.  They just don't get him at all.

[mphgrove]

Let’s say you are Dollar General. Do you scale back and have empty shelves? Do you continue ordering from China, pay the tax and become Two Dollar General? Do you desperately try to see if the same sort of items are available from Vietnam, or South Korea or a place where the tariffs are less? Do you desperately look for little factories here at home in the USA (NOT). Maybe a mix of all of above?

[jude2]

Let’s say you are Dollar General. Do you scale back and have empty shelves? Do you continue ordering from China, pay the tax and become Two Dollar General? Do you desperately try to see if the same sort of items are available from Vietnam, or South Korea or a place where the tariffs are less? Do you desperately look for little factories here at home in the USA (NOT). Maybe a mix of all of above?

Most likely a mix to start, but some countries will be cheaper to get items because they are willing to go to 0 tariffs

[Mayday]

Let’s say you are Dollar General. Do you scale back and have empty shelves? Do you continue ordering from China, pay the tax and become Two Dollar General? Do you desperately try to see if the same sort of items are available from Vietnam, or South Korea or a place where the tariffs are less? Do you desperately look for little factories here at home in the USA (NOT). Maybe a mix of all of above?

Those stores source from varying countries.

But tariffs are here to stay in one form or another but China is fucked now.

The “junk” around us is all cheap crap. All that goes away with tariffs.

Sku rationalisation will occur. We don’t have the time or money to re-tool quickly and produce the same amount of different products. I’ve talked about this for years and it’s here now. There is no way around it because guys like me will take profitable volume movers and derisk as a priority. We will sacrifice 10 products to save 2. Nobody will move bullshit $1 items from China to retool Vietnam.

[SF1900]

There goes my dollar toothpaste from Dollar General.

Thanks Trump.

[mphgrove]

Those stores source from varying countries.

But tariffs are here to stay in one form or another but China is fucked now.

The “junk” around us is all cheap crap. All that goes away with tariffs.

Sku rationalisation will occur. We don’t have the time or money to re-tool quickly and produce the same amount of different products. I’ve talked about this for years and it’s here now. There is no way around it because guys like me will take profitable volume movers and derisk as a priority. We will sacrifice 10 products to save 2. Nobody will move bullshit $1 items from China to retool Vietnam.

No doubt China’s factories and China’s economy will suffer. But making ourselves suffer in the bargain (and we ARE headed for a recession) may just end up lose/lose for everybody. And if this results in a Democratic Congress in two years and a Democratic President in four, will there be any consistency in how this rolls out?

[Mayday]

No doubt China’s factories and China’s economy will suffer. But making ourselves suffer in the bargain (and we ARE headed for a recession) may just end up lose/lose for everybody. And if this results in a Democratic Congress in two years and a Democratic President in four, will there be any consistency in how this rolls out?

It was set in 2016.

BUT sorry to say supply crunch 2.0 has just started. We can’t all move from a 16T manufacturing economy to a 476B manufacturing economy in Vietnam. It’s Covid 2.0 all over again.

China just upped tariffs, prepare for 200% now. You’ll see just how quickly this get fucked up because of what I have outlined. I can’t move all my sandwiches to Vietnam in 2wks and even if I wanted to there is a line 10km long for us wanting to get in.

It sucks by the way. But yeah, prepare for market nuke.