Srajan, I was asked by Ken Ng to write a blog entry about my ShoonTH fuse experience which I gladly did. Alvin Chee was on copy. I received the below reply from Alvin which I don't think he would mind sharing as it mirrors the video he posted on YouTube about possible difficulties arising from US trade sanctions. You provided a reference to that video in your industry features section. It's a sad turn of events. I'm hopeful that some semblance of reality can return to this situation in the near future for the Chinese manufacturers/distributors. Michael
Dear Michael, thank you for your continued support, I appreciate it. Unfortunately, our business has been greatly affected by the recent trade war. We are experiencing challenges shipping to the US due to the recent removal of de minimis import exemption. All shipments will be subjected to US import duties/taxes/tariffs. As the seller/merchant, we are required to pay the import duties/taxes/tariff in advance and there is a minimum charge of US$150 on all shipments we're told. That puts a great burden on us and our US customers. I hope for the best outcomes for everybody! Many thanks. Yours sincerely, Alvin Chee
It's the inevitable fall-out from Trump's shenanigans. Europeans pay import tax on everything. Americans enjoyed an $800 exemption which just was revoked. Now US consumers get to experience what that feels like. If the squeeze hurts enough, perhaps they'll complain to their overlord? Many US firms are already losing business because foreigners unhappy with Trump's bullying tactics and their impact abroad are boycotting his economy by no longer buying US-made where it's obvious. It's all interconnected. This could be news to the MAGA view where the US is the global super power and everyone else subservient to its interests. Fair play. Let's see whether there will be sufficient domestic pushback to return things to less hostility. For the time being, Chinese manufacturers will have to focus their efforts on all the other markets which aren't directly impacted by the current US tariffs. The post-Brexit UK too has seen rising costs of living due to economic spats with EU suppliers. That we're living on one planet and all are part of one humanity which must get along and cooperate seems lost on many politicians. Srajan
Srajan, well said. I think the tide is slowly turning as Trump begins to feel the heat of consumer dissatisfaction. He's already paused certain trade sanctions for all but China and I predict the de minimis exemption will soon return. It's a nightmare to enforce and, importantly for Trump, it's affecting not only his own consumers but US shipping companies such as UPS and FedEx. Recently UPS announced layoffs of 20'000 people and the closing of distribution centres all connected to this issue. Trump will eventually blink IMHO. I've already communicated my concerns to my federal representatives and posted about it on LinkedIn, my only social media/business platform. Michael
America might just need a lesson in humility to get off its high horse as the global bully and enforcer? Like Brexit, the curious aspect is being entirely self-inflicted. But with US consumers and businesses starting to feel the squeeze, there's hope that Washington won't be able to keep up the current stupidities and backs off. The Greeks had their own austerity troubles. Many of them simply stopped paying their annual taxes. I don't think the concept of austerity will go down any better with the average American who feels entitled to a comfortable life without major hardships but is being sold 'the American Dream'. Having lived in the US for 20 years of my life, I know first hand of the 'information bubble' which the American media creates very successfully to foster a certain very insular worldview. That bubble burst the moment we left for Cyprus then Switzerland. One simply doesn't realize its extent and power until one lives fully outside the bubble. Then the world, and America's place within it, look rather different. And to be sure, just because I currently live in Europe doesn't mean we don't have our very own problems. Srajan
A few quotes from the founding fathers of the United States: "When tyranny becomes law, rebellion becomes duty." Thomas Jefferson.
"If ever a time should come when vain and aspiring men shall possess the highest seats in Government, our country will stand in need of its experienced patriots to prevent its ruin." Samuel Adams. Amen. Michael
With today's global-village interconnectedness of everything, it's sobering to realize that nobody stands apart from this. In one way or another, we're all being affected by what currently happens in the US as a direct result of a democratic election not dictatorial coup. One wonders whether the majority which voted for this president remains as convinced of their choice now as when they went to the polls? Srajan
Srajan, the Trump tariff on China will now be 30% instead of 145%. It’s a 90-day pause but I believe the worst is over as Trump overplayed his hand. So, good news for hard-working Chinese in the hifi sector. The big question: as the supply chain has been disrupted, how long will it take to recover? Michael
If everything remains up in the air—what happens after 90 days?—it's nearly impossible for companies to plan ahead. There's practical latency between getting news of changes and making the necessary adjustments. Instability, indecisiveness and endless flip-flopping is bad for business. Is it good for anything else? Are there upsides that warrant it? I'm no economist to have insights into such matters. I just don't see how a self-serving focus intended to benefit one country leads to a win for all. If it doesn't, it's just adolescent me-myself-and-I thinking that doesn't grasp the big picture of us all living together on one planet. Srajan
