Showing posts with label tariffs. Show all posts
Showing posts with label tariffs. Show all posts

Monday, February 25, 2019

Tariffic news

Two Trump tweets from yesterday. Read the bottom one first, then the top one:

Good if true
We don't talk about tariffs much, but they are a big issue for a lot of companies, including one that's near and dear to me. While I understand why Trump has pursued tariffs in general, the uncertainty concerning their duration and overall effect has caused a lot of businesses to struggle with their short- and medium-term planning. If you currently source a product from China, will a tariff apply? For the whole product, or just certain components? If you source the product elsewhere, can the new companies deliver a product of comparable quality to what you're currently getting, at a price that makes sense? If the tariff goes away, do you re-establish your business relationships? Or could the tariffs come back? And if you keep your products in China and pay the tariff, do you pass along the cost to your customers? In whole, or in part?

A company's future can hinge on such questions. I am hoping the answers become more clear in 2019.