Most of my material cost have gone up. I've raised our pricing accordingly. Sales are up substantially.
Announcement
Collapse
No announcement yet.
Economic impact of Tariffs
Collapse
X
-
Unfortunately I think people will respond to this thread from a bias point of view (supporting Trump). However a lot of these tariffs have negatively impacted consumers. I will use something very simplistic as an example. Steel prices. Trailers have gone up substantially since the steel tariffs have been in place. So for example, trailers. Trailer prices have gone up 30-40 percent in the last year, and they're suppose to continue to rise. The trailer manufactures and distributors are not making more money with the increased prices. In fact, trailer manufactures and distributors are making less money because sales are down due to increased cost. So in this scenario, the tariffs are impacting consumers AND businesses in a negative way. This is just one very simple example.
Now with that being said, I work in construction. Construction is fantastic in the DFW area, so our business is thriving. These tariffs have caused ALL material to go up, and we aren't making anymore money off of it. Hard to deny that some of the policies that the Trump administration has introduced have worked, but these tariffs do not seem to be one of them.Last edited by Arrowthreat; 10-12-2018, 08:09 AM.
Comment
-
Originally posted by Arrowthreat View Postso our business is thriving............ and we aren't making anymore money off of it.
I work in construction as well. Our margins are down (I would argue more Harvey related than Trump) but sales and revenue is up.
Comment
-
Originally posted by Arrowthreat View PostUnfortunately I think people will respond to this thread from a bias point of view (supporting Trump). However a lot of these tariffs have negatively impacted consumers. I will use something very simplistic as an example. Steel prices. Trailers have gone up substantially since the steel tariffs have been in place. So for example, trailers. Trailer prices have gone up 30-40 percent in the last year, and they're suppose to continue to rise. The trailer manufactures and distributors are not making more money with the increased prices. In fact, trailer manufactures and distributors are making less money because sales are down due to increased cost. So in this scenario, the tariffs are impacting consumers AND businesses in a negative way. This is just one very simple example.
Now with that being said, I work in construction. Construction is fantastic in the DFW area, so our business is thriving. These tariffs have caused ALL material to go up, and we aren't making anymore money off of it. Hard to deny that some of the policies that the Trump administration has introduced have worked, but these tariffs do not seem to be one of them.
Yes, costs have risen and partially because of tariffs, but in reality from what I have seen in the industries and markets I participate in, tariff's are just an excuse to raise prices... some of my competitors not only raised prices, but ADDED a sur-charge to their projects...
I wish there were no tariffs, but in the long run, I look forward to the day I can use domestic materials to get my projects done and I indeed support the president/administration in this effort.
Comment
-
Originally posted by SaltwaterSlick View Post...so the cost of a steel trailer is up 30-40%... Well it ain't tariff's that made it go up that much... I sell millions of dollars in stainless steel products, and my actual landed costs have increased about 12%... I guess I should have bumped my pricing by the 30-40% huh?
Yes, costs have risen and partially because of tariffs, but in reality from what I have seen in the industries and markets I participate in, tariff's are just an excuse to raise prices... some of my competitors not only raised prices, but ADDED a sur-charge to their projects...
I wish there were no tariffs, but in the long run, I look forward to the day I can use domestic materials to get my projects done and I indeed support the president/administration in this effort.
I am in a similar boat, as a large portion of my business is engineered and fabricated reinforcing steel for industrial and commercial construction projects. The vast majority of steel that we fabricate is foreign bar. The import tariffs left the market in the hands of the domestic mills, and they did raise prices because they knew they had the room, but it has by no means been outrageous or to the extent that it could have been. Outside of the DOT work, government projects, and the occasional "just cuz", we fab more import bar by far than we do domestic. Now we do not play much in the DOT work, because the large domestic mills will fabricate and provide bar to these large jobs themselves. But as you said, i too look forward to being able use domestic products knowing that we will be putting back into our economy. Most people complaining about the tariffs are failing to see the big picture. it is 100% best case scenario for America to be self sustainable in all aspects!!
That said, we have not seen a slow up in the construction world at all. Industrial projects are still booming, highways are still being built and rehab'd, and the general commercial construction is booming right along. Of course that is different from region to region, but along the Gulf Coast it is rocking!
Comment
-
I for one, agree with the China tariffs (not so much with the tariffs on our allies), simply on the basis of China's theft of our IP. He needs to tax everything they put out until they reform their IP laws, and their government stops assisting their companies with the thefts. That is the real threat to our economy. We'll never compete with their cheap means of production, but we've always had better technology. They're closing that gap through theft.
Comment
Comment