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by dendrite9 410 days ago
I've heard about businesses that had to jump into a fundraising mode to prepare for the tariffs just so they could receive product. There's also the problem in less direct sales where businesses in the chain expect a certain margin. Simply passing on the tariffs quickly leads to large price increases to the customers. I've looked at a few ways to pass on the tariff and none are very appealing, likely the healthiest option is to try to spreading the effect out by reducing margins at various stages.

I feel lucky that the tariffs were announced at a a time where we were preparing to order new inventory. Otherwise the cash flow effects would be ruinous. Unfortunately we primarily export and there is a real chance we move our manufacturing out of the US as a result of this mess.

1 comments

> There's also the problem in less direct sales where businesses in the chain expect a certain margin. Simply passing on the tariffs quickly leads to large price increases to the customers.

This is what a lot of people aren't understanding. If the tariff is added by the first middleman, each additional middleman between that first one and the customer is adding their increase to that existing increase and the base price, not just the original base price.