Any thoughts on the 145% Chinese tariff on purchases?

[MrJag]

Welp, now that China has retaliated, Trump has TRIPLED the De Minimis taxes starting May 2nd. I got nothing. 

May 2nd Charges:
30% went to 90%
$25 went to $75

June 1st Charges:
$50 went to $150

[womble73]

As funny, almost bordering on childish, as it is. The rest of the world is shaking their heads wondering if this will stop. The US is the biggest importer in the world of goods and I feel sorry for everyone who has to now pay more for no real reason.

The downside is anything that is "US" made is being marked up because it now (or will) costs more to make and we the rest of the world are as also suffering. I am currently looking at sourcing alternate brands as items reach end of life. China is my friend.

Australia has always been expensive for overseas goods for various reasons. It was shipping/ distance and is now because everyone wants to sell in USD, plus a markup. Known as the "Australia Tax". Something that would cost $100 USD, can cost us on a good day $120 USD or more with our GST (goods and services tax) being a flat 10%.

It is going to be an interesting 4 years for you guys and also the rest of the world.

[rockerplates.de]

Welp, now that China has retaliated, Trump has TRIPLED the De Minimis taxes starting May 2nd. I got nothing. 

May 2nd Charges:
30% went to 90%
$25 went to $75

June 1st Charges:
$50 went to $150

Can you help explaining the raise?
i do not quite get it..
lets say, you buy a product for 80 USD?

[MrJag]

Can you help explaining the raise?
i do not quite get it..
lets say, you buy a product for 80 USD?

If you bought a product for $80 today and it arrived after May 2nd but before June 1st, you would pay an additional $72 (90%) or $75 (Flat Rate). It is not clear how they will determine between using the 90% or flat $75 rate. If the product arrives after June 1st, you will pay the additional $150 flat rate.

So that $80 product in total would cost:

May 2nd - June 1st:
$152 - $155

After June 1st:
$230

And those figures are probably low end, as it doesn't include any "brokerage fees" that might charged by carriers like UPS for collecting the tariffs for you.

[Daviddavieboy]

As funny, almost bordering on childish,

 Not getting what they want and throwing a tantrum IS childish. For the well-to-do the next 4 years (possibly the next decade) will be hard but for those struggling financially it will be brutal and the wealthy will be making buckets of money from the whole mess. I used to travel there 20+ times a year but it's too messed up right now financially and politically.

[leozinho]

I'm shaking my head as I don't understand how these tariffs are supposed to help Americans, who largely voted for Trump because of inflation during Biden's term...but I don't understand a lot of what he does.

The important question - if I order today from Aliexpress will it arrive before the tariffs kick in?

[Ludo]

Yes, that’s the risk with the stated deliverybdates probably challenged by the influx of last minute orders

[Serge_K]

I'm shaking my head as I don't understand how these tariffs are supposed to help Americans, who largely voted for Trump because of inflation during Biden's term...but I don't understand a lot of what he does.

afaik, economic theory says that tariffs are inflationary, because they restrict trade, so stuff costs more, is harder to get...
I think trump stated that tariffs are meant to create an incentive for america to produce stuff domestically again. But that sort of things takes eons, and can hurt everyone for a long time until that happens, if it happens.
there's also the idea that trump is using the threat of tariffs to re-negotiate trade deals more favourable to the US, by forcing counterparts to the negotiation table - he does like making deals and being able to say that HE re-negotiated a trade deal with country X. The thing is that i dont see the US making bar tape and carbon frames, so why tax that? Are blanket tariffs a sound strategy? If everybody starts making their own bar tape again, then we might as well go back to sewing our own clothes, because where does the logic of on-shoring / re-shoring stop? People were crying a few days ago that the UK stopped making raw steel, i think. Afaik, raw steel needs iron ore, aka mining. So, does the UK want coal miners again? I thought people were quite pleased to shut down coal mines. Or, we want to produce raw steel, but import the ore? How does that make economic sense, or theoretical sense? we draw the line at steel yes, ore no? why? You could argue there's a national autonomy / defense aspect to producing steel. But then surely that doesnt apply to bar tape?

Nobody understands it, afaik. And there's a gap between "big picture, it makes sense" and "yeah but the reality is that X, Y and Z are suffering right now, in the name of an ideal". Also, the ideal of communism ends up putting people in camps. It's a very nice ideal, equality and shit, but somehow, implement it, and people die. So the idea, or ideal, that tariffs should solve this or that problem may be true big picture, long term, but at what cost short term, to how many?

I think the economic term is shit's fucked.

[courdacier]

Not getting what they want and throwing a tantrum IS childish. For the well-to-do the next 4 years (possibly the next decade) will be hard but for those struggling financially it will be brutal and the wealthy will be making buckets of money from the whole mess. I used to travel there 20+ times a year but it's too messed up right now financially and politically.

you'll still be able to get your carbon bits, it's called "origin washing". it'll take more effort, but there'll be ways.

[Tijoe]

If you bought a product for $80 today and it arrived after May 2nd but before June 1st, you would pay an additional $72 (90%) or $75 (Flat Rate). It is not clear how they will determine between using the 90% or flat $75 rate. If the product arrives after June 1st, you will pay the additional $150 flat rate.

So that $80 product in total would cost:

May 2nd - June 1st:
$152 - $155

After June 1st:
$230
And those figures are probably low end, as it doesn't include any "brokerage fees" that might charged by carriers like UPS for collecting the tariffs for you.

In a large bearing cup,  USA consumers will no longer make any purchases from China using the De Minimis process.  This has been the intent of the last administration and now the new, using the guise of drug precursors and other banned or restricted goods.   They don't let us know that one of the primary reasons is  to regain profits lost by companies and importers that have lost product market share because many consumers were able to direct-purchase from foreign countries. (Bicycle parts are a small fraction of what was being imported through the $800 De Minimis.)   They want their import fees, warehousing fees, and to be able to add dealer and shop markups based on these higher cumulative costs. (more profit per item, at a higher price, with the same amount of work.)

I believe that the high tariffs for most countries will be short lived.  POTUS wants each country to come begging to him to make a deal.  For the countries that kiss his ring, he will give exemptions and he can boast that he won.  For countries that don't play his game, the USA will basically no longer import that country's goods.

Companies will band together/industries and file for exemptions, (6 month to 1 year process) and get them because what they sell is close to 100% dependent on foreign imports.  90+% of the bicycle industry will start to collapse as soon as importers start paying the tariffs.  Therefore, they will be very motivated to file for exemptions.  (Remember that this happened for the existing 20% Chinese tariffs for bicycle parts.)

Keep in mind that many large companies have been importing a much larger volume of consumers goods in anticipation of what POTUS has been doing.  They are betting that they will have enough inventory to last through what is happening now.   Unfortunately, small businesses, and niche products aren't included and will suffer, along with consumers like us who have enjoyed the benefits of Aliexpress, Temu and Shien

If this persists, consumers will lose access to many "convenience, consumable, and luxury items" because they will no longer be imported,  or we can no longer afford them.   
This reminds me of lifestyles one reads about in Russia.

[00Garza]

Damn. I had canceled my Elite wheels order because it wasn't going to make it in time and opted for some Tagoola wheels with expedited shipping. It'll be close, but wouldn't mind paying 30% tax if needed. Definitely won't risk it at 90% though!

[jonathanf2]

Damn. I had canceled my Elite wheels order because it wasn't going to make it in time and opted for some Tagoola wheels with expedited shipping. It'll be close, but wouldn't mind paying 30% tax if needed. Definitely won't risk it at 90% though!

Damn, I'm tempted to order gravel wheels as well. I have a few small orders coming in. Due to size, wheels will at least take 2 weeks. Not sure if it's worth it. Though I should probably be concerned about other things...you know like food, heath and survival! 

[jonathanf2]

What I'm gathering on Chinese social media, the general populace isn't very worried. If anything they'll miss Apple products (they really like Apple), but they can make do with what they have domestically since they already produce everything. According to the US vice president, they're just peasants anyways! 

The question, can those in US suburbia with a 5 bedroom home + 2 car garage and several SUVs have the same ability to weather the storm without daily household goods?

[Tijoe]

It was fun while it lasted.   POTUS just announced a total of $125% tariff on Chinese goods,  and a 90 day pause on other countries.   This is what I call progress!

[glepore]

As I've posted in another thread, I have a bike that was paid for in mid Jan that hasn't left China yet and has been in transit within the country for over 14 days and hasn't moved for 5. The silly games being played by my POTUS is likely to cost me over 2k, or more than double what I originally purchased for. I'd just reject the goods, but I suspect they'll enter and I'll get billed anyway. I'm most certainly pissed.