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Pre-tariff Purchases?

trlvn

trlvn

Ultra Member
Since it looks like we're going to be forced to retaliate against possible US tariffs, I wondered if any of you are stocking up on USA-made items ahead of time? Pushing major purchases through before the ax falls? Or hoping that it will all be over before you really need something?

Craig
 
trlvn said:
Since it looks like we're going to be forced to retaliate against US tariffs, I wondered if any of you are stocking up on USA-made items ahead of time? Pushing major purchases through before the ax falls? Or hoping that it will all be over before you really need something?

Craig
Click to expand...
Honestly, I am looking for everything I can that is NOT made in usa and trying to focus as much as possible on Canadian made products and going to try and live a little more simpler life, if that's even possible. Wife unit says I am a pretty simple man already. ;)
 
We are switching from groceries at Walmart (close by and convenient) to No Frills et al in the north end. We have focused on Made in/Product of Canada for many years, just increasing the focus. We buy 4kg boxes of chicken at Costco Business Centre, it is all Canadian sourced. Either way, they all employ local staff so it is more of a 'where does profit go'.

And will order some aluminum stock from Stoney Creek Metal Supermarkets soon as well. I already have small hex stock coming from the UK and China.
This will be year 5 of not crossing the border.
 
Some additional thoughts:
Have you considered that if the US imposes a high tariff on Chinese goods some may be diverted to Canada at a reduced price? Also, Canada will have a glut of aluminum with the promised tariffs. A more important problem than tariffs may be the likely decline in the value of the Canadian dollar.
 
I had purchased much of the used tooling and a few machines in my shop from US sources as was much cheaper than local auctions etc. over the thirty years I’ve been building up my shop. For many of those years I used a shipping address just across the 49th that was much cheaper for sellers to ship to me and easier to clear customs on my end. Went down to the US address on the weekend to do my final emptying out of purchases. End of an era? Talked a bit with other folks there, and they are all doing the same as me- no more US purchases.

The US actually sells more to Canada than we sell to them. They are shooting themselves in the foot. And when you add in the fact that 1/3rd of their energy supply (oil/gas/electric/uranium) comes from us, much at cheaper than world prices, they should be grateful. Bonus to us, is maybe we’ll finally realize the market is bigger than just the US- we can sell to others.
 
The tariffs might initially boost the USD, but once the inevitable inflation kicks in, I suspect the USD will decline. Possibly severely, especially if USA’s biggest creditors decide to push back on the tariffs. I’m not smart enough to figure out what that’ll mean for the CAD. Probably nothing good.
 
I had an interesting chat with one of my Asian suppliers who I have worked with for many years. His organization (a group of many small manufacturers) are concerned because they feel that tariffs are going to significantly increase the costs to the US consumer, which of course slows down sales at their end.

He said that many small factories work with short-run contracts which are driven by the local manufacturing demand. Since their group services many larger manufacturers who are expecting a huge reduction in orders, so their group will probably be directed towards supporting other product lines, meaning that their usual products will not be manufactured.

I can see this being a sea-change for small manufacturers across the western economies too. Part shortages, price fixing, lower quality substitutes, etc.

And sadly, when I am affected by these increased costs, there is no option but for me to increase prices.

I have a question for the group though...

The manufacturer sells a product to an offshore buyer for say $100.
The buyer imports the product, paying shipping, duties, taxes and tariffs. $100 + 22% duty + 10% shipping + 80% tariff + 10% local tax = $265
The buyer adjusts the price of the product for the local market, accounting for all costs and profits. $241 + 50% = $397
The buyer sells the product to a retailer, who adds their 30% as usual.
397 + 50% = $595.

Before tariffs: $288. After tariffs: $595

How on earth does anyone think this is a 'tariff' not a consumer tax?
 
Last edited:
trlvn said:
Since it looks like we're going to be forced to retaliate against tariffs, I wondered if any of you are stocking up on USA-made items ahead of time? Pushing major purchases through before the ax falls? Or hoping that it will all be over before you really need something?

Craig
Click to expand...
That would defeat the purpose of the tariffs.

I stopped visiting US relatives years ago. I haven't been back. I curtailed purchases on US made products with the exception of food products.

I plan to boycott everything made in the US, and products from Int'l corporations based in the US (as much as realistically possible)

produce from mexico and SA only now.

Used tooling only, or in a pinch made in China.
 
FatherWes said:
The tariffs might initially boost the USD, but once the inevitable inflation kicks in, I suspect the USD will decline. Possibly severely, especially if USA’s biggest creditors decide to push back on the tariffs. I’m not smart enough to figure out what that’ll mean for the CAD. Probably nothing good.
Click to expand...
There was a great commentary on how tariffs risk the US dollar and it's place as a global currency. The risk of loss of influence in Asia aka Japan, Korea and smaller nations and their dropping US dollar investments.

I'm glad that I've completed most of my tooling acquisitions before the global financial crap storm.

If food becomes an issue Toronto has a ton of free range kitties to fill the void :cool: :oops: o_O
 
“ Toronto free range kitties”! Jeepers, warn me- was sippin my afternoon coffee and nearly snorted it out my nose. Think you’d do better with trash pandas.

Altho… my big lathe (small by industrial standard) came from Bayer’s old Toronto lab, and two other machines from other Toronto sources. Maybe I’m guilty of filling the machine void from TO.
 
gerritv said:
We are switching from groceries at Walmart (close by and convenient) to No Frills et al in the north end. We have focused on Made in/Product of Canada for many years, just increasing the focus. We buy 4kg boxes of chicken at Costco Business Centre, it is all Canadian sourced. Either way, they all employ local staff so it is more of a 'where does profit go'.

And will order some aluminum stock from Stoney Creek Metal Supermarkets soon as well. I already have small hex stock coming from the UK and China.
This will be year 5 of not crossing the border.
Click to expand...
Well said Gerrit!
 
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