Civilized said:
caryking said:
SmaptyWolf said:
caryking said:
Yesterday, our Supply Chain team did an impact study of tariffs on the company. The presentation was very extensive, without a political agenda.
The bad news:
The importer, that helps us process our goods, gave us new news on a large category of products that will have an effect. Initially, we didn't think this was going to happen; however, after the thorough review, we will be impacted.
We don't have a plan yet.
The interesting news:
They were able to break down all the impacts of the Tariffs and provide us with the what, where, how, and why. What I noticed, from this presentation, was the targeted and specific rational for all the tariffs.
My statement is not to pursued people in to liking the tariffs; rather, to learn more about the tariffs before speaking about them. Meaning, too many people are saying things like: Trump is just throwing tariffs out in a Willy nilly manner, without any plan.
You may not like them; however, to criticize how they are being distributed is being very naive.. I saw a clear plan of attack with these tariffs, to satisfy his agenda.
Again, this presentation didn't speak from a political perspective; rather, from a factual one…. As you know, I support the tariffs and was able to see clearly the plan.
Care to elaborate on this plan of attack that you've seen so clearly?
Go read for yourself…
Generally thoughtful post Cary. And interesting regarding impacts to stitch.
The administration has to own the public not understanding and for the most part, doubting highly rational bases for tariff determinations, for two reasons.
One, much of their early public communication regarding tariff rates was clearly nonsensical and conflating trade deficits and tariffs, which are apples and peanuts. Not only was it wrong, but it was so wrong and so public that that clearly hampers trust in their ability to rationally analyze and deploy Tariffs subsequently.
Second, aside from that initial blast of communication the administration has had significant opportunity, but has done almost nothing in the way of, clearly and coherently explaining to the American people what the basis for the tariffs and specific tariff rates and policies are.
That's their job, both to govern and communicate effectively regarding that governance.
Civ, that answer is exactly what I'm talking about. Listen, this tariff implementation, for 10's of years has been difficult to understand, even for a person that deals in them. The general public wouldn't understand the implementation, even if told. Go research HTC codes and try to discern that. It's not easy!
Now, all of the previous tariff's, in general are still in place, with some modifications. Now, depending on the country Trade deficit, the counties tariff's on our goods, and some geopolitical tariff's, like on Russia, India, and China, and any other countries doing final assembly, of components coming out of China, are all subject to a new tariff.
One example: Golf Bags were all manufactured and assembled in China, prior to 2016. Every brand you could buy, were made in China, including Stitch. A 40% tariff was added to the HTC code that Golf Bags fell under, when using a certain type of fabric make-up (Stitch used that fabric). If a brand used a different fabric make-up, the Golf Bags would fall under a different HTC code (slightly more complicated than that, but hopefully you get the point). This was an increase done in 2017 or 2018. In fact, that increase was never changed, by the Biden Admin. Why? The revenues were good.
So, Stitch started looking for another country to manufacture our Golf Bags, including the US. We found another country (Indonesia); however, that country didn't do any manufacturing; rather, all they did was final assembly. I'm sure you know where the manufacturing is done, right? China. The US doesn't do any manufacturing of the components we need to assemble our Golf Bags, on a scale we need.
Just so you're clear, I wish we could manufacture and assemble our Golf Bags here in the US. As stated, we do not have the manufacturing capabilities to do it here. We could do the final assembly here; however bringing the manufactured components to the US, from say China, would not be cost effective, not because of the final assembly here; rather, the shipping of the components here, from outside the US. We've done this math and it doesn't work.
Now, I don't think Golf Bags manufacturing is of vital national interest to the country, so, we do what we do.
So, what changed for us? Indonesia got hit with new tariffs. That is because of the supply lines for Indonesian assembly being China. China is the animal that Trump appears to want to take down. That, I support!
Now, when I was involved in the presentation of Tariff impacts, the amount and specificity of these new tariffs are clear. Absent a reasonable understanding of tariffs, no one would understand what the heck is going on. Hell, I have more than a reasonable understanding and it's confusing for me. So, I doubt most people would get it at all. It would become entirely too technical.
Civ, I suspect you're smart enough to understand if presented with the information. You may disagree with the "why" it's being done; however, you would understand the "what".