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bluesbassman

(20,371 posts)
Thu Apr 3, 2025, 09:14 AM Apr 2025

My friend operates a small business. He received this note today from his main supplier, also a small business.

The raw materials my friend uses are literally unavailable from any domestic manufacturer, so this price increase effectively wipes out his operating profit making continued operations not possible. In the short term he’ll have to pause production, long term he’ll close up shop if this tariff situation continues. I would imagine his supplier will be in a similar position. Probably more than a few people’s employment at risk.

“As you may have heard, tariffs have increased on imported products. As a result, we will be raising our pricing over the next couple of days. We have always prided ourselves in offering the best quality products at competitive pricing. This is still our goal, but these increased costs will have an effect on all of us. All in, tariffs and excise taxes will increase pricing approximately 75% higher than they should be without these added Government fees. Unless we pass these costs on, we will not be able to remain a viable business. We appreciate your understanding. If you have any questions, please feel free to call me. 
Mike (Owner) xxx-xxx-xxxx”

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My friend operates a small business. He received this note today from his main supplier, also a small business. (Original Post) bluesbassman Apr 2025 OP
Oof UpInArms Apr 2025 #1
Intended consequences. dchill Apr 2025 #12
Putin's wet dream. n/t Justice matters. Apr 2025 #52
The goal is to wipe out all small businesses? Irish_Dem Apr 2025 #2
Combination of the two is my guess. bluesbassman Apr 2025 #3
The billionaires only care about their profits. Irish_Dem Apr 2025 #4
That's just it, they want to destroy the current model so tsf and reich wing oligarchs control most everything. lark Apr 2025 #5
Cab sec Howard Lutnick said the quiet part out loud Bernardo de La Paz Apr 2025 #13
My god, what a dumb fuck! sdfernando Apr 2025 #18
Steve Jobs was asked about why not robotics instead of Apple moving their manufacturing to china. LiberalArkie Apr 2025 #27
Not destroy us Figarosmom Apr 2025 #44
Obamacare liberated people from working for huge corporations. yardwork Apr 2025 #6
Good point. People were no longer indentured servants for health coverage. Irish_Dem Apr 2025 #8
Every year the benefits would get crappier wolfie001 Apr 2025 #22
Yes, high deductible, high co pays, little coverage. Irish_Dem Apr 2025 #24
Don't get sick wolfie001 Apr 2025 #25
Actually, your last couple of sentences or paragraph is wrong, IMO. Dan Apr 2025 #21
That's true of Musk and many others, but the messaging is confused. yardwork Apr 2025 #35
I agree, and Dan Apr 2025 #42
So many things went wrong during the Reagan era. yardwork Apr 2025 #47
Automation and UBI CitizenZero Apr 2025 #43
Now you care about small businesses? Wilma Woke Apr 2025 #7
Enjoy your visit. rzemanfl Apr 2025 #14
You're too kind. Wilma Woke Apr 2025 #16
Get that next email and screen name rolling Sugarcoated Apr 2025 #29
better than Wilma Broke Skittles Apr 2025 #39
Ugh SammyWinstonJack Apr 2025 #30
Closing down weed shops might help some people make posts Irish_Dem Apr 2025 #51
The goal is to wipe out our nation. Trueblue Texan Apr 2025 #45
Yes the evil genius plan is working quite well. :( Irish_Dem Apr 2025 #50
The goal is to destroy America. iemanja Apr 2025 #48
and both those people Dyedinthewoolliberal Apr 2025 #9
I Just Got An Email From a Clothing Company Deep State Witch Apr 2025 #10
These examples are just the tip of the iceberg I'm afraid. bluesbassman Apr 2025 #11
Believe Me, I Know Deep State Witch Apr 2025 #19
Well.... angrychair Apr 2025 #15
Seems like a license to steal. Littlered Apr 2025 #17
Why can't they pass on the tariff to the customer? Mosby Apr 2025 #20
Struck Me, Too ProfessorGAC Apr 2025 #23
Yeah I wondered about that too. bluesbassman Apr 2025 #26
No Doubt ProfessorGAC Apr 2025 #31
If they stay in place, the tariffs will be devastating. bluesbassman Apr 2025 #36
I Only Have One ProfessorGAC Apr 2025 #38
Nice! GAS is a hard habit to break! bluesbassman Apr 2025 #40
I'm Long Done ProfessorGAC Apr 2025 #41
I did a double take on that too Ruby the Liberal Apr 2025 #32
We need interviews with business owners in the MSM every day. NoSheep Apr 2025 #28
75%? I'm having a hard time Tickle Apr 2025 #33
Many raw materials are exempt GreatGazoo Apr 2025 #34
I buy a lot of European goods. Just bought sneakers today because my last pair is in pretty bad Raftergirl Apr 2025 #37
I would like to see a line item on all goods and products: 'Trump fee for the wealthy' wiggs Apr 2025 #46
We knew this was inevitable. anybody who didn't see it coming has been blinded by Trump Love. Martin68 Apr 2025 #49

Irish_Dem

(79,396 posts)
2. The goal is to wipe out all small businesses?
Thu Apr 3, 2025, 09:19 AM
Apr 2025

Let the big businesses swoop in and buy the small business on the cheap?
Or just wipe them out period?

bluesbassman

(20,371 posts)
3. Combination of the two is my guess.
Thu Apr 3, 2025, 09:28 AM
Apr 2025

It’s not sustainable though as our size and diverse economic landscape operates and thrives because of small businesses.

lark

(25,856 posts)
5. That's just it, they want to destroy the current model so tsf and reich wing oligarchs control most everything.
Thu Apr 3, 2025, 09:32 AM
Apr 2025

They HATE the working class and poor and will do everything to destroy us!

Bernardo de La Paz

(60,320 posts)
13. Cab sec Howard Lutnick said the quiet part out loud
Thu Apr 3, 2025, 10:10 AM
Apr 2025
https://www.democraticunderground.com/100220202148

Lutnick on CNBC: It's not about helping workers (though he tries to say the opposite)

"Why can't iphones be made in the US with robotics?"

Then later says "We need to employ Americans, but Americans can be much more efficient with robotics."

sdfernando

(6,007 posts)
18. My god, what a dumb fuck!
Thu Apr 3, 2025, 10:50 AM
Apr 2025

if you don't employ people, who can afford to buy the fucking product!

LiberalArkie

(19,214 posts)
27. Steve Jobs was asked about why not robotics instead of Apple moving their manufacturing to china.
Thu Apr 3, 2025, 11:42 AM
Apr 2025

It I remember correctly, Jobs said it cost millions and sometimes over a year to properly design and program the robots to assemble the parts, whereas China can just put 10,000 workers on the job in a month.

This naturally was decades ago. The car manufacturers have managed to do a lot, but at some point either Apple will need to stop reinventing the wheel every year or .....

Figarosmom

(9,643 posts)
44. Not destroy us
Thu Apr 3, 2025, 06:22 PM
Apr 2025

Whip us into a subservient worker class that will do anything that is asked, for little return and a lot of debasement.

yardwork

(68,886 posts)
6. Obamacare liberated people from working for huge corporations.
Thu Apr 3, 2025, 09:34 AM
Apr 2025

For several decades, as the price of healthcare soared, workers were unable to quit jobs with large companies. We were essentially indentured servants.

Obamacare made it possible for people to quit jobs and become entrepreneurs. Small businesses thrived.

I suspect those corporations want their workers back. This is one way to do it.

Irish_Dem

(79,396 posts)
8. Good point. People were no longer indentured servants for health coverage.
Thu Apr 3, 2025, 09:36 AM
Apr 2025

Big business was furious.

wolfie001

(6,962 posts)
22. Every year the benefits would get crappier
Thu Apr 3, 2025, 11:02 AM
Apr 2025

Coverage less, cost more. Every year, every Union contract. Death by 1,000 cuts. American Corporate policy in a nutshell.

Irish_Dem

(79,396 posts)
24. Yes, high deductible, high co pays, little coverage.
Thu Apr 3, 2025, 11:15 AM
Apr 2025

Total scam.

Americans have been indentured servants for a long time.

wolfie001

(6,962 posts)
25. Don't get sick
Thu Apr 3, 2025, 11:22 AM
Apr 2025

Divorce a spouse and put one on Medicaid as a financial strategy. American christianity at its root/core/base.

Dan

(4,928 posts)
21. Actually, your last couple of sentences or paragraph is wrong, IMO.
Thu Apr 3, 2025, 11:00 AM
Apr 2025

Automation is the goal. Elimination of the human element is the goal. Machines, robots, Kiosk don’t take breaks, don’t eat and aside from regular maintenance don’t have any real cost after acquisition, aside from electricity.

People are increasingly obsolete. The big corporations just have to figure a way to generate increased wealth without the need of people. Maybe, they are also in the process of redefining what is “wealth”.

The only thing that they do need is one portion of the population to kill the other portions of the population to maintain their “wealth”.

yardwork

(68,886 posts)
35. That's true of Musk and many others, but the messaging is confused.
Thu Apr 3, 2025, 12:40 PM
Apr 2025

I think there are probably companies that are still mad that they lost workforce due to entrepreneurship.

Let's say we're both right. Somewhere US companies totally lost any sense of decency.

Dan

(4,928 posts)
42. I agree, and
Thu Apr 3, 2025, 04:48 PM
Apr 2025

I think that it was when Reagan reduced the Marginal Tax Rate. Prior to that when the MTR was high, companies reinvested their profits back into the company. When they reduced the MTR the owners took the profits out of the companies and reinvested or stored away the money. When they reinvested the money back into the companies, they also reinvested in their workers because they perceived the workers to be an asset rather than a liability.

IMO.

 

CitizenZero

(920 posts)
43. Automation and UBI
Thu Apr 3, 2025, 06:18 PM
Apr 2025

Universal Basic Income (UBI) might be a solution. Automation is probably coming one way or another. Unfortunately. Andrew Yang ran for President and UBI was one of his innovative (unusual?) policy positions.

 

Wilma Woke

(19 posts)
7. Now you care about small businesses?
Thu Apr 3, 2025, 09:35 AM
Apr 2025

I remember during lockdown that weed shops were considered essential but except for corporatations like Mall-Wart, they had to shut their doors. 😑

Dyedinthewoolliberal

(16,182 posts)
9. and both those people
Thu Apr 3, 2025, 09:48 AM
Apr 2025

should be sending this information to Congress and asking them to work on impeachment because Hair Fuehrer isn't going to be any help.

Deep State Witch

(12,537 posts)
10. I Just Got An Email From a Clothing Company
Thu Apr 3, 2025, 09:56 AM
Apr 2025

Snag Tights, which is UK-based, but manufactures in Italy. They're still debating what to do, since they have a lot of US customers.

bluesbassman

(20,371 posts)
11. These examples are just the tip of the iceberg I'm afraid.
Thu Apr 3, 2025, 10:01 AM
Apr 2025

If this madness continues it’s going to snowball into an avalanche very quickly.

Deep State Witch

(12,537 posts)
19. Believe Me, I Know
Thu Apr 3, 2025, 10:54 AM
Apr 2025

I'm a crafter. I make jewelry and sell it at shows and on Etsy. I'm glad that a friend gave me a bunch of her beads from downsizing. Plus, I stocked up on the Delicas that come from Japan. Right now, I'm not planning on raising my prices on Etsy. For now.

angrychair

(11,639 posts)
15. Well....
Thu Apr 3, 2025, 10:19 AM
Apr 2025

Maybe if he can scrape together several million dollars and write the Mango Mob Boss a personal check he could get a crave out. I'm absolutely positive all this is a shakedown for money and just to be a bully.
Have a relative that owns a small business, with several components from Taiwan and Vietnam. They didn't get much sleep last night.

 

Littlered

(347 posts)
17. Seems like a license to steal.
Thu Apr 3, 2025, 10:27 AM
Apr 2025

Call me a cynic, but that has been my observation for most of my time on earth. Spending the last 25 plus years as a small business owner. Just like the gas surcharge that was added by one of our contractors during the pandemic. It’s still there.

Mosby

(19,212 posts)
20. Why can't they pass on the tariff to the customer?
Thu Apr 3, 2025, 10:57 AM
Apr 2025

It's a tax, right?

What's up with the 75% increase? Sound like bullshit. Trump imposed a 25% tariff.

ProfessorGAC

(75,694 posts)
23. Struck Me, Too
Thu Apr 3, 2025, 11:12 AM
Apr 2025

It mentions and excise tax, but that is one heck of an excise tax.
25% tariff & a 40% excise tax? You'd think the 40% would be bigger news than the tariff.

bluesbassman

(20,371 posts)
26. Yeah I wondered about that too.
Thu Apr 3, 2025, 11:31 AM
Apr 2025

My friend is pretty shook up today and I don’t think he’s called the guy back yet to get a breakdown on the increase, hopefully soon. Maybe it was a typo, I don’t know, but even the minimum 25% tariff, regardless of the the excise tax or “markup” these importers apply will be a significant enough burden on the profit margins for many small businesses that many won’t be able to survive.

ProfessorGAC

(75,694 posts)
31. No Doubt
Thu Apr 3, 2025, 12:31 PM
Apr 2025

I found this:

The average gross profit margin across all industries is 36.56%, while the average net profit margin is 8.54%.

Banks (particularly money centers) have the highest average profit margins of any industry at 100% gross and 30.89% net.

The auto and truck industry has the lowest average gross profit at 12.45%.

Real estate development has the lowest average net profit margin at -16.35%.

These are gross profit margins, so no overhead is yet absorbed.
Here's a list of gross & net margins by industry. I don't see any manufacturing segments where the 25% tariff isn't sucking a big portion or all of the gross margin.
https://www.venasolutions.com/blog/average-profit-margin-by-industry

BTW: I've always meant to ask you; what kind of bass do you play? I've got a 5 string Fender Jazz bass.

bluesbassman

(20,371 posts)
36. If they stay in place, the tariffs will be devastating.
Thu Apr 3, 2025, 03:10 PM
Apr 2025

Big guys will ride it out, but not before putting millions out of work.

Cool, I have a 5 string Jazz too, but it’s not my primary. I have three that get regular stage rotation. A 50’s P, a 60’s Jazz, both made in Mexico. And I have a pretty rare 2018 Parallel Universe 51’ Telecaster that’s a USA model. Amplification is either a Rumble 800 combo, or an Aguilar Tone Hammer 700 on top of a GK Neo 212.

ProfessorGAC

(75,694 posts)
38. I Only Have One
Thu Apr 3, 2025, 04:01 PM
Apr 2025

But, I've got 14 guitars, 4 amps, 6 keyboards, an acoustic piano & a mandolin.
So, my bass isn't lonely!

bluesbassman

(20,371 posts)
40. Nice! GAS is a hard habit to break!
Thu Apr 3, 2025, 04:19 PM
Apr 2025

I’m beginning to thin the heard, just sold my stadium rig, a Fender Super Bassman 300 watt all tube head with a 410 and a 15. Just too heavy and big to haul around for club dates any more, and to be honest the Class Ds sound damn near as good! I’ve got ten other basses that’ll I’ll probably most of. The three I mentioned are my go to for performance.

ProfessorGAC

(75,694 posts)
41. I'm Long Done
Thu Apr 3, 2025, 04:23 PM
Apr 2025

So the habit is broken.
I spent 75 or 80% of my gig money on gear. When I quit performing, I quit buying.
At least with the acoustics, I play all of them. I only play 2 or 3 of my electric guitars, regularly.
And, I play piano every day, as well.
I don't miss getting new stuff, though.

Ruby the Liberal

(26,593 posts)
32. I did a double take on that too
Thu Apr 3, 2025, 12:34 PM
Apr 2025

Is he talking about increasing prices 75% over what he was already planning to increase them?

 

Tickle

(4,131 posts)
33. 75%? I'm having a hard time
Thu Apr 3, 2025, 12:38 PM
Apr 2025

thinking products will go up 75%. Can you be more specific with the product your friend is getting?

GreatGazoo

(4,421 posts)
34. Many raw materials are exempt
Thu Apr 3, 2025, 12:40 PM
Apr 2025

and more will be added to the exemption list. My advice would be to shop around while delaying any purchase which can be delayed. Trump has 6 days to reverse -- something he has done both times before. The first rule of manufacturing is "Have at least two sources for everything that is critical to your business."

>Some goods will not be subject to the Reciprocal Tariff. These include: (1) articles subject to 50 USC 1702(b); (2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs; (3) copper, pharmaceuticals, semiconductors, and lumber articles; (4) all articles that may become subject to future Section 232 tariffs; (5) bullion; and (6) energy and other certain minerals that are not available in the United States.

https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/

Raftergirl

(1,790 posts)
37. I buy a lot of European goods. Just bought sneakers today because my last pair is in pretty bad
Thu Apr 3, 2025, 03:26 PM
Apr 2025

shape. They were on sale from $199 to $158. I bought two pair so I’ll have a spare when one gets beat up.

Everything is European sourced and they are manufactured in Portugal.

https://sansmatin.com/pages/sustainability

wiggs

(8,654 posts)
46. I would like to see a line item on all goods and products: 'Trump fee for the wealthy'
Thu Apr 3, 2025, 07:00 PM
Apr 2025

Sometimes on restaurant tabs you'll see a cost line for 'employee benefits' or 'staff living wages'. Since tariffs are partly for tax cuts for the wealthiest, a line item on every imported car, car part, tool, off-season melon, chair, 2 x 4, kilowatt of electricity, spliff from Mexico, lawnmower from China, viagra pill from Sweden, carpet from Turkey, etc would make it clear and immediate who should be blamed.

Martin68

(26,942 posts)
49. We knew this was inevitable. anybody who didn't see it coming has been blinded by Trump Love.
Thu Apr 3, 2025, 08:32 PM
Apr 2025
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