Tariffs on Chinese Electronics

[suttondesign]

So, I just got the bill for my most recent order of Matrix Audio products, shipped from China, and indeed I was hit with 25% tariffs. I don't see how any dealer can do better than full MSRP, and even then, offering free shipping really hurts. I offer no commentary on whether this is a good thing or a bad thing, but in effect it helps U.S. companies like Benchmark, at least at first blush. Benchmark, however, is at peak production and for some items is backordered, so I assume that its labor costs are rising too. I would expect to see its prices go up. I don't mean to start a thread on economics; just want forum members to know what's happening with imported Chinese products. If you want Matrix Audio, it's for the quality, not a price advantage.

 

[Willem]

No economy benefits from tariffs. This is plain and simple introductory economics. So I am glad I could get my RME ADI-2 in the Netherlands without paying any import duty.

 

[suttondesign]

Non-economists may not accept the demonstrable, mathemetical truth (I got my undergraduate degree in economics and had to do the math!) that tariffs hurt everyone, just as subjectivist audiophiles do not accept measurements.

 

[JBNY]

That stinks. I bought my Matrix a few weeks ago and while it was retail price, there was no tariff added. Guess I got in before the bell.

 

[digicidal]

The argument (if there even is one) is that just like economic sanctions the idea is to create balance through force. I can't come up with a single case where this worked in any actual historical situation however, although history (esp. economics and foreign relations) weren't ever my forte.

I swear sometimes global trade seems more like a game played by children: "The rules I put in place are unfavorable to me? Guess what? I just remembered a new rule! It allows take-backs on any prior rule I don't like."

 

[Ron Texas]

Non-economists may not accept the demonstrable, mathemetical truth (I got my undergraduate degree in economics and had to do the math!) that tariffs hurt everyone, just as subjectivist audiophiles do not accept measurements.

I don't think this tariff thing will go on forever. The big issue is Chinese theft of US intellectual property. The tariffs are a means to an end, not the objective.

 

[mi-fu]

Tariffs (25%) + NY tax (near 9%) = 34%.

 

[digicidal]

I don't think this tariff thing will go on forever. The big issue is Chinese theft of US intellectual property. The tariffs are a means to an end, not the objective.

Well, I certainly expect China to have a total reversal on that any day now... so nothing to worry about right? LOL!

 

[Ron Texas]

Well, I certainly expect China to have a total reversal on that any day now... so nothing to worry about right? LOL!

LOL. It's going to be like pulling teeth and the Administration won't get a lot of what it wants.

 

[digicidal]

LOL. It's going to be like pulling teeth and the Administration won't get a lot of what it wants.

Except negative interest rates probably... always easier to get what you want when it's the most ridiculously stupid things - not nearly as easy to get something that actually benefits anyone.

​

A photograph of President Regan and other prominent members of his administration displayed with the above caption and context is partisan politics, and don't try to BS me into thinking otherwise. Some people are delusional enough to believe they are making an absolute moral statement when they are making a political statement.

It's literally a meme that has been around for years... but to make your "safe space" a little happier - I found a bipartisan one just for you. Not that it matters, but I'm a conservative - which is exactly why what is being done to the economy (through tariffs, deficit spending, and the proposal of negative interest rates) is so upsetting.

I'm glad we've got you to keep speech free and rational, Ron.

 

[Sal1950]

Good, They've been breaking our backs with tariffs on US products.
What's good for the goose is good for the gander.
I'll treat you as you treat me.

 

[suttondesign]

As long as each of you buys a Matrix DAC from me, I am agnostic.

 

[suttondesign]

I strongly suggest that we not go too far down the political road on this topic. In other fora, I note that people start to bail when the current political situation becomes the topic. I was merely trying to inform forum members that the tariffs are very real.

 

[GrimSurfer]

Very helpful post @suttondesign ... it answers a lingering question I've had about trans-Pacific trade implications.

I suppose when the GBP drops on October 31st, you'll find some relief on U.K. equipment.

All of this sounds like putting a smiley face on disaster or profiting from others' bad fortune (but it isn't).

 

[HammerSandwich]

@suttondesign, considering you're in Texas, how about starting a Mexican subsidiary that imports from China, then reships duty-free to the US? Heck, that's probably more profitable than actually dealing the gear!

 

[Ron Texas]

Except negative interest rates probably... always easier to get what you want when it's the most ridiculously stupid things - not nearly as easy to get something that actually benefits anyone.

​

Your are getting into the partisan political realm here. If I were a mod, I would strike this.

 

[amirm]

Let's not talk politics even though it is important to understand the hit to our hobby as far as cost.

 

[digicidal]

Your are getting into the partisan political realm here. If I were a mod, I would strike this.

Not partisan at all... although it could be taken that way I suppose. However, this is entirely about politics - and nothing else. The principals change, the parties change, the nations change - but the ones taking it in the backside never do.

I find it hard to believe that anyone still believes in party lines anymore - it's merely a matter of those who have power and the rest of us who are controlled by it/them. In this case by having to pay extra, and likely never get it back - even if the tariffs ended tomorrow. I bet the bankers will still have record setting profits throughout.

 

[Zog]

I don't think this tariff thing will go on forever. The big issue is Chinese theft of US intellectual property. The tariffs are a means to an end, not the objective.

FTFY

 

[Zog]

No economy benefits from tariffs. This is plain and simple introductory economics.

Bland assertion. We were asked to avoid economics debate.