That was interesting...I collect toys, which includes board games, I have over a 100 different ones, many from the 70's and 80's...or even older...I would hate to see them not be around anymore
In the meantime, Mike Johnson et al are planning to pass a bill to change house rules to NOT allow them to prevent blocking Trump’ s tariffs. Once that is in place, Trump can go to town. It is all about Trump empowering himself and the GOP going along. Do not celebrate the stock market return.
Thank you for writing about the impact on businesses like Cephalofair. I have a friend who is a toy seller. She bought our local toy store when the owner of several decades wanted to retire. She redecorated the store, with help from friends, and made it a gem on the main street of our small town. It is regularly voted the best toy store in our area. She managed to weather Covid (barely) by revamping the website (herself) for online sales. This has been a labor of love. And these tariffs will almost certainly lead to her closing the store, into which she has put her life savings.
Great read.As dark as it is think about the losses these guys will be looking at when they can't make deliveries for this toy season.Being import dominated,you need to place your orders in January,reconfirm and finalize by end of February so that production can run in March and April.This means shipping (if all goes well) in April and May for June,July receipts (July and August the latest); for retailers have it available for September distribution to their locations.
This is a real FUBAR.
Now think how the export feels when Amazon,Walmart and Target tell them ...find me some room in your pricing or your future on our selves is in jeopardy.To minimize their losses the factory will either curtail production or stick it to these smaller companies.
The side of this is that the importers will be creating a lot of "newness"...That 10 pc.Cookware set at $99.99 is now going to be an 8 pc.set.Or the set contents will get smaller.That 48 oz.blender will now be 32-40 oz. (Depending on what the engineers can figure out.
Lastly, there will be more consideration and that when WE get plugged ! This is when those predators will look to regain their profits but holding the new prices as the tariffs go away.
It is stunning that we went from economic miracle to economic catastrophe within months of Trump 2.0. The fabled soft landing was achieved-- inflation was trending downward without a recession -- and relatively high wages and employment were sustained. Dems did not make enough of this achievement at the time and MSM could not articulate how incredible a success it really was.
Thanks Jonathan. This is yet another example of the insightful, in-depth reporting we love about The Bulwark. I wish that our national politics were not so stupid as to require this in-depth, insightful reporting, but at least The Bulwark gives us a place to read, reflect, and comment.
This is a good example, thank you; it illustrates well on that specific industry. There are others.
My business is men's and women's apparel, an independent, family owned business that began in 1943 with my grandfather. In the 70s and 80s, American companies made a conscious decision to move their production to China and other countries where labor costs were fractional, and whose employee would not report to them, but to positions in those foreign countries. In so doing, they also rid themselves of the financial burden of benefits, including health care. Thousands of well paying jobs were jettisoned in favor of those jobs going overseas. Again, American capitalism abandoned American workers so as to make MUCH more money by manufacturing elsewhere. They closed factories and moved equipment; America lost the capacity to make clothing here, in large part. In the HBO documentary Schmattata: Rags to Riches to Rags, this was reported: In 1965, 95% of all the clothing BOUGHT in America was MADE in America. By 2005, just 40 years later, America produced 5% of the clothing. Shoes, too, same process, resulting in a fraction of the capacity to make shoes here.
Today, Trump endeavors to whip up nationalism by blaming ALL of the countries that make the clothing we buy, declaring that they are taking advantage of us. He establishes a policy and economic plan based on LIES, and those who support him parrot his proclamations with righteous indignation. The truth is that Capitalism decided to do this, and Republican and Democratic administrations during that period of time did NOTHING to protect the lost jobs and industries. Tariffs could have been deployed THEN, even before the process started, warning that it would actually make those imports MORE expensive. Other punitive measures could have been implemented SO AS TO CONTROL CAPITALISM, but our leadership chose to allow it to happen.
I sell moderate to upper moderate branded products in each store, most all of them manufactured overseas. Trump's declared tariff income is indeed absurd when it comes to my industry, because the imports will screech to a halt. I have to make price/value decisions for every brand I consider. If Chinese-make product is suddenly double the cost, then the retail applied will have to be double the current price, and my decision will be to NOT BUY THE PRODUCT because consumers will not pay those inflated prices. The net result of this tariff, therefore, is 1.) a crash at the wholesale level of these American brands, 2.) stores that have nothing to sell because we cannot make it here, so we crash and burn as well, and therefore 3.) ZERO TARIFFS COLLECTED in the process of destroying our economy, not to mention the lives of American citizens employed in this industry.
The recklessness of this is apocalyptic for the American independent retail industry. It also urges the countries of origin to find customers elsewhere that have integrity and honor. This is all impeachable behavior. The damage will be irreparable, yet NO ONE will stop it. I am the only voice I am aware of even SAYING this. The apparel industry as a whole is in real and present and immediate danger, and NOT just a the Walmart level (which is all I ever hear anyone refer to).
Anyone that refers to such a calamitous scenario as "part of the process" is an enemy of the state.
We COULD bring manufacturing of ALL types back here. We won't, because capitalism will not abide it, and government is not willing to subsidize such a massive shift. So ALL of this is an exercise of an attempt to wield power and control by an idiot that no one will imprison.
“70% of popular brand-name drugs sold in U.S. pharmacies are imported” according PharmacyChecker.com. Many are made in China and finished in the US. See article for more info. Viagra is manufactured in Ireland (20% tariff).
I’ve come to the same conclusion. There is no long term vision or strategy. So yes, how does any company justify making the long term investments necessary to move more, or all, of their supply chain stateside? And the next question is who will take these jobs, like the ones described by Lutnick, “screwing thousands of tiny screws” to make phones. Won’t these jobs have to pay pretty well to attract applicants? And wouldn’t that push up the cost of those products to unaffordable levels? These sound like the tedious, repetitive jobs that recent immigrants have traditionally held in our country. Yet we are deporting immigrants and discouraging further immigration. So how does all this work out? I don’t see it, and 47 is not offering a vision.
I was surprised to find that people actually do screw in tiny screws into cell phones. I thought that would be fully automated. I am pretty sure it will soon be automated in China, and it would be if the industry is re-shored.
Assembling and testing cell phones is a lot more complicated than you might have thought. See minutes 6 to 7 here:
It would take years to learn to do it in the U.S. Intel's recent fiasco trying to set up chip factories in the U.S. shows how things like this can fail.
I am wondering.....just how do these tariffs get collected? There has to be massive amounts of paper work. Which Dept. collects the tariff monies? With all the staffing cuts, can that Dept. handle the extra work? Are tariffs paid, monthly, quarterly, yearly?
What will be left when the Trump disaster sinks America and the entire trading world. The "American Century" --- the post WWII era when the US thrived as did all western countries, many with our help --- it's all gone now. The US has no more allies. No country on earth trusts anything stupid Pig Trump says. It is OVER.
It's all gone now, just like your retirement plans, the kids college funds and certainly that new car you'd hoped to buy this year. All Gone. Trump did this. Pig Trump must be impeached. Is is a mad man bent on destruction. Take out all the other Trump-sucking Republicans too. They truly are enemies of America.
And one more thing: Trump's Tariffs are taxes on US consumers. Importers raise their prices to cover the Tariff's, American manufacturers raise their prices to match those of imported goods, inflation burns the economy to the ground. ALL publications that discuss this issue must tell the truth: The US consumer pays ALL the US tariffs!
I think that somehow and fast convince Congress to do their job and reel in Toddler Don’s power trip and let the rest of the clown car know that they do not have free reign. They have to answer for their actions just like any other administration has had to answer for their actions. We do not have a King!!
The board game analogy is a good one. Trouble is, the game the mad king is playing is going to affect everything. The people that surround him, I believe, as one commenter noted are very wealthy if not billionaires that won't go against his wishes or even try to talk sense into him. Some like Peter Navarro don't have any sense anyway. The Times today said Wall Street people, banks, business leaders were all trying to talk sense into him through his aids with no luck. I am retired and live on a fixed income. My very modest 401 is tanking. I live on my pension which will be hit hard if this keeps up as well. SS is being ripped apart at the same time. Costs for everything will/are going up exponentially. There are millions like me that will be really hurt by all of this. Talked to my wealth manager today about how to hedge against this and there really is no way out on that front. The idea that manufacturing can be magically brought back to America is a pipe dream and as the article points out Biden was doing that in a precise manner to avoid huge disruptions. So, the mad king will destroy anything that was moving the economy forward and put in place whatever will be as destructive as possible. Truly, I thing the Donald is really pissed off that he has never gotten the love and respect that he thinks he deserves. And that goes back decades. This is revenge on his perceived enemies and the enemy is the American people. We are all fucked.
That was interesting...I collect toys, which includes board games, I have over a 100 different ones, many from the 70's and 80's...or even older...I would hate to see them not be around anymore
In the meantime, Mike Johnson et al are planning to pass a bill to change house rules to NOT allow them to prevent blocking Trump’ s tariffs. Once that is in place, Trump can go to town. It is all about Trump empowering himself and the GOP going along. Do not celebrate the stock market return.
Thank you for writing about the impact on businesses like Cephalofair. I have a friend who is a toy seller. She bought our local toy store when the owner of several decades wanted to retire. She redecorated the store, with help from friends, and made it a gem on the main street of our small town. It is regularly voted the best toy store in our area. She managed to weather Covid (barely) by revamping the website (herself) for online sales. This has been a labor of love. And these tariffs will almost certainly lead to her closing the store, into which she has put her life savings.
Great read.As dark as it is think about the losses these guys will be looking at when they can't make deliveries for this toy season.Being import dominated,you need to place your orders in January,reconfirm and finalize by end of February so that production can run in March and April.This means shipping (if all goes well) in April and May for June,July receipts (July and August the latest); for retailers have it available for September distribution to their locations.
This is a real FUBAR.
Now think how the export feels when Amazon,Walmart and Target tell them ...find me some room in your pricing or your future on our selves is in jeopardy.To minimize their losses the factory will either curtail production or stick it to these smaller companies.
The side of this is that the importers will be creating a lot of "newness"...That 10 pc.Cookware set at $99.99 is now going to be an 8 pc.set.Or the set contents will get smaller.That 48 oz.blender will now be 32-40 oz. (Depending on what the engineers can figure out.
Lastly, there will be more consideration and that when WE get plugged ! This is when those predators will look to regain their profits but holding the new prices as the tariffs go away.
It is stunning that we went from economic miracle to economic catastrophe within months of Trump 2.0. The fabled soft landing was achieved-- inflation was trending downward without a recession -- and relatively high wages and employment were sustained. Dems did not make enough of this achievement at the time and MSM could not articulate how incredible a success it really was.
Thanks Jonathan. This is yet another example of the insightful, in-depth reporting we love about The Bulwark. I wish that our national politics were not so stupid as to require this in-depth, insightful reporting, but at least The Bulwark gives us a place to read, reflect, and comment.
This is a good example, thank you; it illustrates well on that specific industry. There are others.
My business is men's and women's apparel, an independent, family owned business that began in 1943 with my grandfather. In the 70s and 80s, American companies made a conscious decision to move their production to China and other countries where labor costs were fractional, and whose employee would not report to them, but to positions in those foreign countries. In so doing, they also rid themselves of the financial burden of benefits, including health care. Thousands of well paying jobs were jettisoned in favor of those jobs going overseas. Again, American capitalism abandoned American workers so as to make MUCH more money by manufacturing elsewhere. They closed factories and moved equipment; America lost the capacity to make clothing here, in large part. In the HBO documentary Schmattata: Rags to Riches to Rags, this was reported: In 1965, 95% of all the clothing BOUGHT in America was MADE in America. By 2005, just 40 years later, America produced 5% of the clothing. Shoes, too, same process, resulting in a fraction of the capacity to make shoes here.
Today, Trump endeavors to whip up nationalism by blaming ALL of the countries that make the clothing we buy, declaring that they are taking advantage of us. He establishes a policy and economic plan based on LIES, and those who support him parrot his proclamations with righteous indignation. The truth is that Capitalism decided to do this, and Republican and Democratic administrations during that period of time did NOTHING to protect the lost jobs and industries. Tariffs could have been deployed THEN, even before the process started, warning that it would actually make those imports MORE expensive. Other punitive measures could have been implemented SO AS TO CONTROL CAPITALISM, but our leadership chose to allow it to happen.
I sell moderate to upper moderate branded products in each store, most all of them manufactured overseas. Trump's declared tariff income is indeed absurd when it comes to my industry, because the imports will screech to a halt. I have to make price/value decisions for every brand I consider. If Chinese-make product is suddenly double the cost, then the retail applied will have to be double the current price, and my decision will be to NOT BUY THE PRODUCT because consumers will not pay those inflated prices. The net result of this tariff, therefore, is 1.) a crash at the wholesale level of these American brands, 2.) stores that have nothing to sell because we cannot make it here, so we crash and burn as well, and therefore 3.) ZERO TARIFFS COLLECTED in the process of destroying our economy, not to mention the lives of American citizens employed in this industry.
The recklessness of this is apocalyptic for the American independent retail industry. It also urges the countries of origin to find customers elsewhere that have integrity and honor. This is all impeachable behavior. The damage will be irreparable, yet NO ONE will stop it. I am the only voice I am aware of even SAYING this. The apparel industry as a whole is in real and present and immediate danger, and NOT just a the Walmart level (which is all I ever hear anyone refer to).
Anyone that refers to such a calamitous scenario as "part of the process" is an enemy of the state.
We COULD bring manufacturing of ALL types back here. We won't, because capitalism will not abide it, and government is not willing to subsidize such a massive shift. So ALL of this is an exercise of an attempt to wield power and control by an idiot that no one will imprison.
Key fact missing about Johnson and his 8 employees: did they support/vote for Trump. Because this scenario was was predictable.
“70% of popular brand-name drugs sold in U.S. pharmacies are imported” according PharmacyChecker.com. Many are made in China and finished in the US. See article for more info. Viagra is manufactured in Ireland (20% tariff).
https://www.pharmacychecker.com/askpc/how-can-i-determine-where-a-drug-is-manufactured/#:~:text=Many%20medications%20you%20rely%20on,Kingdom%2C%20and%20the%20United%20States.
I’ve come to the same conclusion. There is no long term vision or strategy. So yes, how does any company justify making the long term investments necessary to move more, or all, of their supply chain stateside? And the next question is who will take these jobs, like the ones described by Lutnick, “screwing thousands of tiny screws” to make phones. Won’t these jobs have to pay pretty well to attract applicants? And wouldn’t that push up the cost of those products to unaffordable levels? These sound like the tedious, repetitive jobs that recent immigrants have traditionally held in our country. Yet we are deporting immigrants and discouraging further immigration. So how does all this work out? I don’t see it, and 47 is not offering a vision.
I was surprised to find that people actually do screw in tiny screws into cell phones. I thought that would be fully automated. I am pretty sure it will soon be automated in China, and it would be if the industry is re-shored.
Assembling and testing cell phones is a lot more complicated than you might have thought. See minutes 6 to 7 here:
https://www.youtube.com/watch?v=psDO1rPFQ1Y
It would take years to learn to do it in the U.S. Intel's recent fiasco trying to set up chip factories in the U.S. shows how things like this can fail.
Another great Bulwark article.
Such an interesting story; I learned a lot. Thanks. And, once again, there’s no logic to Trump’s actions, just the exercise of power.
I am wondering.....just how do these tariffs get collected? There has to be massive amounts of paper work. Which Dept. collects the tariff monies? With all the staffing cuts, can that Dept. handle the extra work? Are tariffs paid, monthly, quarterly, yearly?
I believe customs agents collect them at the borders, airports etc
What will be left when the Trump disaster sinks America and the entire trading world. The "American Century" --- the post WWII era when the US thrived as did all western countries, many with our help --- it's all gone now. The US has no more allies. No country on earth trusts anything stupid Pig Trump says. It is OVER.
It's all gone now, just like your retirement plans, the kids college funds and certainly that new car you'd hoped to buy this year. All Gone. Trump did this. Pig Trump must be impeached. Is is a mad man bent on destruction. Take out all the other Trump-sucking Republicans too. They truly are enemies of America.
And one more thing: Trump's Tariffs are taxes on US consumers. Importers raise their prices to cover the Tariff's, American manufacturers raise their prices to match those of imported goods, inflation burns the economy to the ground. ALL publications that discuss this issue must tell the truth: The US consumer pays ALL the US tariffs!
I think that somehow and fast convince Congress to do their job and reel in Toddler Don’s power trip and let the rest of the clown car know that they do not have free reign. They have to answer for their actions just like any other administration has had to answer for their actions. We do not have a King!!
The board game analogy is a good one. Trouble is, the game the mad king is playing is going to affect everything. The people that surround him, I believe, as one commenter noted are very wealthy if not billionaires that won't go against his wishes or even try to talk sense into him. Some like Peter Navarro don't have any sense anyway. The Times today said Wall Street people, banks, business leaders were all trying to talk sense into him through his aids with no luck. I am retired and live on a fixed income. My very modest 401 is tanking. I live on my pension which will be hit hard if this keeps up as well. SS is being ripped apart at the same time. Costs for everything will/are going up exponentially. There are millions like me that will be really hurt by all of this. Talked to my wealth manager today about how to hedge against this and there really is no way out on that front. The idea that manufacturing can be magically brought back to America is a pipe dream and as the article points out Biden was doing that in a precise manner to avoid huge disruptions. So, the mad king will destroy anything that was moving the economy forward and put in place whatever will be as destructive as possible. Truly, I thing the Donald is really pissed off that he has never gotten the love and respect that he thinks he deserves. And that goes back decades. This is revenge on his perceived enemies and the enemy is the American people. We are all fucked.
Agreed. We are the targets of his retribution.