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Rumor Mill News Reading Room, Current Archive

The Truth About The Left's Ranting On The Effects Of Those "Devastating" Chinese Tariffs DJT Is Imposing...

Posted By: Watchman
Date: Wednesday, 13-Jan-2021 05:52:00
www.rumormill.news/123893

The Dems/Left are badmouthing on it ONLY because their donors, China-Mart and their ilk are going to hurt on the bottom line.

On the other hand, American ingenuity will relieve the pain consumers may feel.

The following is a true life experience posted on Jim Stone's site today. It sees through the deception...

from: http://82.221.129.208/.wk9.html

===============================================
An excellent social media post...
A First hand experience with Chinese tariffs...

"I am a service retailer and have been for over 15 years. I buy parts wholesale for retail sale as components of my service. I buy from several wholesale vendors who all stock the same type of parts but from different manufacturers. The parts I purchase are made in various countries, US, Canada, Mexico, S. Korea, EU, etc. and are all of like quality for their purpose. Because of that, my purchasing is totally price driven. I shop each vendor for best price on a particular part I need. These vendors constantly complete for my business and the business of other service retailers in the area.

The wholesaler I primarily dealt with gave notice last October of a 10% across the board price increase due to Chinese tariffs and that another 15% increase would come into effect in February. A total if 25% price increase, not only on their Chinese parts but all parts they sold. The bulk of this wholesaler's inventory was Chinese. Now, another wholesaler's pricing is generally better, so I've been buying from that one but I still shop around for every part. The wholesaler I'm using now has not increased their pricing. In fact, they have lowered it. This wholesaler stocks a greater percentage of US, Canadian and Mexican made parts and they are not feeling the full effects of the Chinese tariffs, to the point they are absorbing the increase in sales and making up profits on increased sales volume.

Bottom line, I have NOT found it necessary to increase my retail prices since the Chinese tariffs have gone into effect and it is likely that wholesalers who have pro-actively diversified their inventories to include non-Chinese products will be just fine also. This needed to be done. It is not only helping US manufacturers but Canadian, UK and Mexican manufacturers as well who are filling the void the US is creating with China.

Any wholesaler or retailer who finds their inventory not moving because of price increases will either have to sit on that inventory, which itself costs money, or eventually lower their prices again to liquidate it and then shop around to other importers to replenish it. All of this inventory coming in on Chinese cargo ships or sitting in import warehouses or transport hubs eventually has to enter the distribution chain, even if it has to be sold at a loss.

These Chinese tariffs are an upheaval. Trump really did kick the table over but wholesalers and retailers ARE making market adjustments to the point where the impact to the consumer will be minimal.



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AN EXPLANATION OF THE FACTIONS