discounted price post-tariff = USD 42.02 plus tariff = USD 42.02 x 1.19 = USD 50
m'sian exporter absorbed USD 7.98
if you're a manufacturer you would start doing the most common tactic = cut corners on your existing product.
I think everybody waiting for US and China negotiations to conclude. If in the end China's tariffs not significantly higher than other countries, then GG.com liao, well played.
I think everybody waiting for US and China negotiations to conclude. If in the end China's tariffs not significantly higher than other countries, then GG.com liao, well played.
China is the most notoriest when doing price slashing.
Even if they are stuck with 30% tariffs, there will still be many "corners" to cut in their products.
Think about all the junk you've been buying on TEMU. The blender I bought work for 5 times only.
China is the most notoriest when doing price slashing.
Even if they are stuck with 30% tariffs, there will still be many "corners" to cut in their products.
Think about all the junk you've been buying on TEMU. The blender I bought work for 5 times only.
What to do? USA didn't diversify their rare earths supply before starting the trade war. And the Nvidia chips are still assembled in China, and they still want to sell the chips to China.
Then who will bring back mfg back to USA? Same price might as well import.
It is always a lost cause to bring back "all" manufacturing to USA anyway. Even if you exclude China, the rest of the world can produce most of the goods cheaper than if it is made in USA. Not to mention USA itself does not even have the workforce to manufacture everything. The right strategy has always been to target specific industry in which USA has an advantages. Even Trump has already mentioned lately he does not intend to bring back low end manufacturing jobs like textiles, furniture etc back to USA. USA will continue to import a lot of goods even in the future. The only time you won't be able to import lots of goods is when your currency value is low compared to the other exporting countries, which will not happen to USA anytime soon.
I always thought USA has another mean to address the deficit issue. They just have to make laws to disallow foreign entities and persons to buy their local companies and assets, or requiring them to pay a high premium in form of taxes if such purchase is allowed to proceed. Then all those USD held by foreign countries are only good to buy USA goods both present and in the future, and they won't have the national security concerns when the country assets are being "sold" to foreigners.
This post has been edited by vhs: Aug 14 2025, 11:34 PM
The cost will eventually passed down to the exporters. Either that or they risk not being able to stay competitive.
For products with no local or EU alternatives, American consumers must pay.
Thats assuming domestic manufacturer dont raise their prices to just under what their foreign competitors are pricing.
History shows that is generally what will happen - tariffs will translate into profit for domestic businesses first before it ever benefit the consumers. Why would businesses lower prices more than necessary?
Thats assuming domestic manufacturer dont raise their prices to just under what their foreign competitors are pricing.
History shows that is generally what will happen - tariffs will translate into profit for domestic businesses first before it ever benefit the consumers. Why would businesses lower prices more than necessary?
Past trend proves that this is not the case. Domestic businesses thrive under low/bad competition but prices only rise by 10-15% due to increase in demand.
Really depending on the sector though. There are sectors which domestic players really cannot compensate in terms of quantity, quality or technology. Consumers will have to fork the bill for these sectors.
Past trend proves that this is not the case. Domestic businesses thrive under low/bad competition but prices only rise by 10-15% due to increase in demand.
Really depending on the sector though. There are sectors which domestic players really cannot compensate in terms of quantity, quality or technology. Consumers will have to fork the bill for these sectors.
total demand remains the same - you put a tax/tariff on something it doesnt increase demand for something.
the lack of competition simply flows this existing demand to domestic businesses, which you acknowledge increased prices.
dont have to look far, just look at proton. if you tell malaysians that high taxes on foreign cars resulted in cheap local cars, youre going to get laughed out of the room.
total demand remains the same - you put a tax/tariff on something it doesnt increase demand for something.
the lack of competition simply flows this existing demand to domestic businesses, which you acknowledge increased prices.
dont have to look far, just look at proton. if you tell malaysians that high taxes on foreign cars resulted in cheap local cars, youre going to get laughed out of the room.
That also doesn’t mean proton cars are going to increase in price overnight. The price remains the same. A temporary fluctuation is an assumption but in some cases it would only result in a longer waiting period.
Net value of a Proton will still follow market perception.
China actually implemented tariff equivalent counter measures for their automotive industry way before Trump even thought of it. That didn’t result in Chinese cars being more expensive. It simply gave their local market space to grow.
That also doesn’t mean proton cars are going to increase in price overnight. The price remains the same. A temporary fluctuation is an assumption but in some cases it would only result in a longer waiting period.
Net value of a Proton will still follow market perception.
China actually implemented tariff equivalent counter measures for their automotive industry way before Trump even thought of it. That didn’t result in Chinese cars being more expensive. It simply gave their local market space to grow.
You mean inventory? The purpose of inventory is to avoid fluctuations, and you can see just-in-time parts and goods being the first to increase prices.
Coincidentally the high number of cars unsold in inventory is the reason china is selling cars reportedly below cost. Tariffs didnt have anything to do with it, nor have any appreciable effect on it.
Aug 14 2025, 07:49 PM
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