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Thread: Will new tariffs affect our hobby?

  1. #25
    Gold Member handlewanker's Avatar
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    Default Re: Will new tariffs affect our hobby?

    First of all lets define what a tariff actually is and does.......

    For a start, if you buy an item made in China etc you will pay 20% more for that item.........I ask again WHO GETS THE MONEY?????....it certainly is not the manufacturers.

    It would have been far better if Trump had made a declaration to pay everyone who manufactures in the USA a 20% rebate for their output instead of a stupid tariff on imports......this won't upset the Chinese, Russians et al, but it would please the investors in US manufacturing.......overnight, anything made in the USA would be 20% cheaper.

    Talk about a double wammy........at the moment when the home manufacturers make items they will inevitably have to include components sourced from a foreign import because you now don't make them yourself.........it will take at least 10 years for the home machine to catch up and start making those parts.........by that time you will have paid many times the item price due to all the tariffs applied.

    It will take someone with a deep pocket and a very long hindsight to invest in an industry that is not on stream for the next 10 years.

    At the same time, how do you apply a tariff to all those imported items that the home market has outsourced to China etc?

    I doubt that they will pull out of China and start producing in the US when the narrow profit margin dwindles even further.....they outsourced in the first instance to try and match the Foreign manufacturers prices but still didn't make it.

    BTW........I spent the last 15 years of my working life before retirement..........1985 to 2000...... tooling up CNC machines so I'm well aware of the difference between old school capstan handle crankers and CNC button pushers.........at the same time I never had to work on one to realise the difference.

    Tariffs are punitive methods whereas rebates are incentives.
    Ian..



  2. #26
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    Default Re: Will new tariffs affect our hobby?

    Tariffs are punitive, but that is why there is a system for other countries to apply for relief from them. Giving rebates to American companies sounds great, but we can’t afford that and it certainly wouldn’t be sustainable. The tariffs are being targeted at countries like China because they don’t trade fairly. China already has massive tariffs on American goods (30%+ in some cases). I don’t know the current statistic, but in 2010 they bought 28 cents of American goods for every $1 we spent in China, largely due to the tariffs they have in place. Every time I get work visitors from there they want to spend their downtime shopping because a lot of American goods cost twice as much in China.

    All that said, i don’t necessarily agree with the tariffs and doubt they will stay in affect long term. However, if they do it may hurt some areas, but it will also create opportunity in others. Much bigger changes than this have happened in the last 100 years yet unemployment has always hovered around 4.5 - 5.5%. It spikes occasionally, but always makes it back there.

    Regarding unemployment, I have to disagree with the comments about CNC or automation stealing all the jobs. It might take over some tasks, but those are usually repetitive tasks where a persons time, skills and intellect can be better used elsewhere. Technology has grown leaps and bounds over the last 30-40 years, but our unemployment is largely unchanged due to it. For every job role it has replaced it has created opportunity elsewhere.

    Lastly, China didn’t steal our jobs as some people have stated. We lost some American manufacturing due to so many products being sourced from China because we (Americans in general) chose to buy lower cost goods from China. The buyer is the one that makes the choice where to buy, not the seller. Same goes for large and small companies. Someone said Toys R Us put the small toy shops out of business, but all they did is offer a different buying option. The consumer put the small company out of business by choosing to spend their money elsewhere.




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  3. #27
    Gold Member handlewanker's Avatar
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    Default Re: Will new tariffs affect our hobby?

    Well, if you subsidise the manufacturing community to the tune of 20% they get a direct shot in the arm to make it worth while to employ more people and manufacture.

    A lot depends on the priorities....a war machine takes preference in some minds, or going to Mars also, whereas the ability to make and sell products is a life blood creator for increased employment opportunities..

    You can subsidise the manufacturing community from agriculture as you have a lot of very fertile land.....and food is one item no one wants to put a tariff on if you cannot grow enough yourself.

    I suppose you could also write the manufacturing part off as it's too tough to compete against cheap labour and get everyone digging for victory and making food.......that is one saleable item that will sell big time given the continuing population explosion World wide.

    I think more will get richer selling food internationally than a few trying to sell bits of metal, and food generation is a sustainable product......anyone can dig a hole.....LOL.
    Ian.



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Will new tariffs affect our hobby?

Will new tariffs affect our hobby?