fradiger
(the world is a beautiful cat and i must meow meow meow)
1
Hey, I know we have a lot of american yoyo company owners and small business owners browsing around here, I’m curious just to hear what your experience is/has been with the tariffs and how you think it will impact the future of your operations.
Please do your best to stay on topic, let’s not get this thread locked by derailing into a political debate. Whether you agree or disagree with the policy is irrelevant to its effect. I am simply interested in how these policies might affect yoyo companies and prices moving forward.
i manufacture various thing for some of my companies in china (maybe 20k-50k in annual goods), I have been on month+ hiatus because work travel for my other business, this tariff come so fast I have no idea what it is going to look like yet I have not have spare day to do research and understand. too busy!
is it added to duty fee at custom import? I already have my factories mark down $10k in goods down to $1k for import, so if I have to pay extra $200-300 in tariff I don’t really mind too much for this.
hopefully some experts will know here in the comments and I can learn some things before I spend days to dig and find some answer when I get time!
From what I can gather, everything will be going up at least 35-40%, raw materials, processed material, partially completed good, finished goods, everything. There is no getting around it, no buying from Canada to skirt the tariffs, and the American material and labor is not there to make up the difference. All the supply will be bought up for other industries.
Had industry built up first and we increased our production of raw materials, it wouldn’t be so much of a problem, but we import everything because it’s more cost effective to have an impoverished country dig up the good rocks to ship to another slightly less poor country to process and then sell to the US, all for less than what it would cost to have well paid Americans to dig it up and process it. Also idk what our raw resource availability actually is in our country.
Please someone, anyone tell me I’m wrong with verifiable sources, I want to be wrong so badly. Things are gonna be rough from here, not just for yo-yos.
Also, the cost of everything else may get so bad for us that we may not even consider spending money on things that don’t immediately contribute to our survival.
This is all completely unprecedented, anyone who says they know what will happen or what other countries will do in response is full of it.
I was wondering about this too with purchasing from company’s out of the US, as well as wondering if US throwers are going to resort to US based companies
These Tariffs are reciprocal, since the US market is the biggest the theory is that there will be concessions and a shift of trade surpluses. Its a little to early to tell as markets are adjusting. Overall markets may be down in the short term, but if you pay attention to Futures, they are up.
In terms of Yo-Yo a large collection could be considered a hedge. Only time will tell.
Under the current plan, I see a diminished future for the yo-yo industry (and industries like it), even in the imagined best case outcomes (which I don’t find plausible at all). If these tariffs work as planned, we will have higher prices, fewer options and less innovation competing for a smaller pool of buyers facing increased economic pressure.
I’ll try to be chill but the us economy never actually recovered from that the covid recession nor did we have a real readjustment. The federal reserve has been struggling to reduce inflation and tariffs will thwart the efforts .
I’ve been pretty pessimistic of the economy since pre 2018 and I don’t see that stance changing anytime soon
The biggest indicator for me is the onslaught of proof people are not paying there bills yet we have the highest debt in US history per household. There’s no way increasing cost of living is going to go well
Its too early to tell, but some have already conceded. This all went into place this week. As always, some will make adjustments and come out ahead.
As far as YoYo, look at what YYF is doing, they are concentrated on other markets outside of the US like India, Africa, Mexico and Asia. Leaving Gentry the US LOL.
Kind of like how Russell Coke-a-Cola yoyos did in the past. They really never had a presence in the US like they did globally. Russell suceeded abroad in markets where there wasn’t any competition creating their own markets.
In short, the tariffs will increase my costs. I don’t really have a customer base outside of the US. I’ll find out more specifics after my next yoyo shipment arrives (Plasm beat the new taxes by a couple weeks).
What I plan to do is probably a mix of adjusting my cost strategy (cutting down on niceties like packaging, stickers, adjusting size of orders, adjusting margins) and changing how I sell (maybe more direct and less wholesale).
I don’t appreciate that some people (not yoyo company owners) are using this thread as an opportunity to bring up other, different economic topics. Maybe don’t do that here, please?
Yeah sorry back to yoyo. Things gonna get more expensive. That’s the end point. Some companies will fail and consolidation happens when cost of good increase… less innovation because of the consolidation.
Tariffs raise prices on imports. The goal is to ease price pressures on domestic goods. This allows domestic producers to raise their own prices. If they so choose, they can invest that money in increased capacity. If they don’t care to increase production, unmet demand for higher priced goods is an opportunity for other domestic producers to enter the market profitably.
But even if that is true in aggregate, it is not necessarily true for every industry. The smaller the industry, the more it depends on very specific people, with specific skills and knowledge, who may prefer to continue to run their successful businesses at familiar scales (edit: in familiar locations). At that point, if meeting increased demand turns out to be more complicated than new entrants “spinning up new factories”, the end result is higher prices and little else within the industry.
This. Everyone needs to realize that it’s going to take a bit of time to see the full effect and whether this theory will work or not. I think the indications so far are that it will once more countries are brought to the discussion table (tariffs for foreign countries are being matched. The hope is that both the U.S. and foreign countries will lower their tariffs in the end, and that business would thrive in the U.S., thus improving the U.S. economy). There will likely be an increase in the cost of foreign goods/business in the short term. How much time this will take remains to be seen.
Like Mr. Mark said, it may be wise to plan on how to cut costs temporarily, just in case.
