PRICE RISE AMERICA ONLY

Reluctantly, we had to raise prices for American customers by $6.50, because of a 26.5% increase in costs! That’s because of the already imposed 10% tariff and a new 16.5% import duty. Under the old de minimis rule anything under $800 wasn’t subject to any import duty, but that's been abolished.

This is only for America-based customers and is a straight passing on of these specific imposed costs. We don’t in any way benefit. If these tariffs and duties are removed in future, we'll reduce prices. 

Let me explain how raised duties and tariffs work because the truth isn't being told.. Your President claims the producer pays them. Technically that’s true. But actually what happens is when the extra charges are imposed on us, we raise prices to cover them, in order to protect our margin. We do physically pay the charges, but that cost is paid by you the consumer via higher prices. So in reality the government is taxing you by making things more expensive. 

When he declares whatever amount is recovered with tariffs, that is actually your money, unless a producer absorbs the cost and doesn’t pass it on. But that would suggest a producer enjoys a big margin, which most don’t and already price as competitively as possible.

Of course it reduces trade because it prices some out of the market. That’s bad for us and bad for you when countries like Canada or the EU impose them on America as retaliation.

No one wins in a trade war, as you can see. And it is manifestly stupid to fight one. This is economics class 101.

You are being sold a gross misunderstanding or an outright lie about tariffs and duties. You may or may not think they’re a good idea but you deserve to know the truth about them.

 

Johnny