temu and shein are cooked
I _think_ Monoprice will pay the couple of hundred dollars "per package" fees for the pallet or container full of cables they bring in, amortising that cost over thousands of items. They'll still get charged the 145% tariff though, but they'll probably cost something like 3x rather than 10x. (Until they work out that they no longer compete with individuals buying from AliExpress/Temu/Shein, or probably even with side hustle Fulfilment by Amazon micro-importers).
It was a fun few years deep-diving into the various amplifier topologies, buying NOS vacuum tubes on eBay, looking through electronics flea markets for parts. I made several amps, tried different tubes, topologies.... Eventually I settled on a small stereo amp and designed a PCB for it, created a small kit even.
Using a drill press in the garage, a table saw to cut aluminum sheet stock down, even learning to powder-coat parts in a toaster-oven I picked up from Walmart, I made increasingly nicer looking amps. With two large output transformers and an even large power transformer they were fairly heavy beasts.
Nonetheless, though I built them a decade or more ago, every one of the amplifiers I built are still in use today. The music I am listening to at this moment is coming from one. Another is down in my "lab". I have given several away to friends, co-workers in the past.
I guess the reason for the tangent was to say that I did indeed find that when you have (or make) a thing of real quality it can last … perhaps a life time?
And thinking again a little nostalgically, I like that too about electronics just up to the post-modern era: a new electronics purchase might have cost you a paycheck or two, but you got I think more mileage out of that device.
EDIT: come to think of it, the heavy iron transformers are from the U.S., the tubes NOS from U.S. WWII bombers. I didn't built them of course with tariffs in mind, but surprisingly they are not so cost-dependent on overseas suppliers.
And here's a photo of the finished amp (from when I once considered selling the kits): https://imgur.com/PBKOQMk
The sale discount is the entire amount I was able to buy my non American jeans for. :/
I guess I can make due with one pair for the week...or wash them each day(oh wait thats gotten more expensive as well).
Maybe local production will get cheaper once more people start keeping their money in local communities. Sending it to China is just awful for your country/region and kills local businesses.
Disclaimer: from Europe so I don't care about USA at all. It's still having the same effect here
Is the thinking here that increased scale would allow production to get cheaper? How would this account for the fact that production was scaled here, but was not cost-competitive when it was operating at scale? What's different now?
Of course that assumes your own costs (like raw materials) do not increase at least on the same scale and that you can rely on the situation being long-term thing (i.e. will last years rather than weeks) as costs include your CapEx on things like new machines.
So here we are assuming that we could get a 50% reduction in cost by scaling to 1m units of a thing. The problem with this logic is that many product categories currently made overseas were produced domestically at scale until relatively recently.
This assumption also appears to imply that the goods in question either have a very low labor input or are produced using automation that is not available to Chinese manufacturers.
Reframing my initial question, what advantages would a US manufacturer have today that they didn't have in e.g. 1990 that would allow them to manufacture for only 66% more than the same manufacturing in China?
I've had a lot of people say this to me. I've known their policy on washing jeans without them ever having to tell me, though.
People become noseblind to their own stench. Unfortunately, it's not easy to ignore the stench of someone else wearing pants with a month of sweat and fecal bacteria soaked into them. I know lots of people also only wash their coats once a year, and trust me, being more resistant to stinking isn't the same as being completely immune to stinking.
Wash your clothes. The idea of not washing them is a meme and it's incredible how many people have fallen for it lately.
The business-to-consumer businesses, which take the largest markup, employ the most people and pay the highest wages in the supply chain, have thrived under this system.
It's not the customers that demand products be made in China, it's these "local" businesses.
Amazon and other US selling platforms are also in trouble, given how much of their income is from drop shippers.
The temu/shein loophole should been closed ages ago.
AliExpress is indispensable for small technical items. If they're available locally at all, shipping included they'd often cost 10-20x as much.
Took a minute in the app to generate a qr code, then I had it to the post shop the same day and they refunded within 3 days.
I wouldn't (personally) buy clothes to wear normally from them, but something like beach shoes or a poncho for a festival I'd maybe get there.
You want a 'My tariffs did that' T-shirt? Temu.
https://www.temu.com/search_result.html?search_key=tariffs%2...
Local store chains can't match that velocity.
Or the US should figure out how to get domestic shipping rates to be as cheap as the rates that Chinese shippers pay to ship to the US.
https://www.ecomcrew.com/why-china-post-and-usps-are-killing...
China can either remain a developing country subject to rules imposed by developed countries. Or it can join the developed countries and shape those rules. It can't do both.