The word ‘tariff’ is a code word for ‘taxes’. In other words, the tariffs the current administration is placing on over $200 billion dollars of worthless Chinese junk we import is going to affect both you and I with higher prices for the aforementioned Chinese crap. This post is not addressing any political agenda. If you send in a comment mentioning any politician’s name or any judgment on our current administration, I won’t publish it. This post is meant for us to find a solution on how we are going to stay afloat and buy said worthless junk affordably. That’s it.
The new tariffs could add another 0.5 percentage points to the current consumer price index — which, based on the latest CPI release, would boost the inflation gauge to 3.2% year-over-year. Such an increase would not go unnoticed by policymakers or American families.
I think both you and I can admit that much of the sh**t that comes in from China kills babies, kills dogs and cats, harms humans and at most times is just plain useless. Yet, we are told that this is the fault of Americans because we love to pay less and welcome cheap prices and even cheaper stuff. Ladies and gentlemen, you and I both know that’s NOT true! But what options did we have? Our salaries shrunk or we were laid off or better yet, involuntarily forced out of the workforce. We were left with very little choice except to buy stuff that matched our dwindling incomes.
Now? Our incomes are up. We’re earning more on our investments. Our home prices have risen. Credit is free-flowing again. And what is our reward for all this extra money? We have to start paying more for the same stuff we paid less for before.
Giant corporations, such as Wal Mart and Target have already announced that starting today, September 24th, now that the tariff wars are in full force, you and I are going to pay MORE for everything from fish to nuts. For a full list of all the products we will now have to pay more for, click here (and hold onto your hat! You’re going to be surprised that we imported so much stuff, its obscene!)
It’s going to get a lot worse before it gets better. My hope is that once these products become negative cost-effective, American manufacturers and entrepreneurs are going to wake up and realize that a whole new market has just opened up to them. As a result, they will start producing these products here on American soil AND prices will come down AND quality will go up (sky way up!)
“Prices are definitely going up,” said small business owner Drew Greenblatt, president of Baltimore-based Marlin Steel, manufacturers of custom steel wire basket products for clients including General Motors, Ford and Boeing.
On May 31st, the U.S. slapped a 25% tariff on imported steel and 10% on imported aluminum. Because of China, Greenblatt states “our steel prices have gone up. This makes us less competitive against German, Mexican and Chinese” competitors.
“We make everything in Baltimore,” Greenblatt said “We only buy steel from Indiana and Illinois and when we lose opportunities because Chinese companies are ripping us off, then that means less steel is bought from Indiana and Illinois and less unemployed steelworkers in Baltimore are getting opportunities to buy a home, and own a car.”
In other words, Greenblatt is very, very happy over the tariffs. It protects his company, his 30 workers and their intellectual properties from theft.
In the interim, till these trade wars straightens itself out, what do we, the American consumer do?
#1. Look for American-made only products. Buy locally. Buy produce, eggs, cheeses and meats/poultry, fruits, vegetables locally. Support your local artisans and craftspeople. Products are still being manufactured here in America; use American-only products. Look for them and buy them!
#2. Shop less. Do without. I know that sounds obvious but ask yourself if you really need the item right now? Can you wait?
#3. Buy what you need in consignment shops, thrift shops, Craigslist, flea markets etc. etc. Those prices won’t be going up.
#4. Hold onto your stuff longer. Fix it up. Make it work. Prices for used cars are soaring! Hold onto your cars, lawn mowers, vacuums, small appliances etc. Repair Cafe’s are popping up more and more (mostly at libraries, community centers) I used to wonder why. Now, I know for sure. These items are going to be too expensive to replace. Best to repair it for now and hold on.
#5. Stop buying crap Made In China. Just stop! Period. Read the labels. We have dog food made only in America! We have dinnerware made in New Jersey! Some furniture is still being made in the Carolinas. Ask questions! Demand answers!
“When an American company comes up with a clever unique idea, it’s quickly taken over by overseas markets. It’s unacceptable. Our government is starting to protect us, or at least address these topics.”
Copyright infringement and IP theft is a big sticking point between China and the U.S. Recently, the Commission on the Theft of American Intellectual Property estimated the total yearly costs of intellectual property theft ranges from $225 billion to $600 billion, with much of that attributed to China.
Greenblatt states: The amount of loss is “hard to quantify, but my company probably would be twice as big if it wasn’t for all the pilfering.”
He added: “We have many Chinese companies that cut-and-paste items from our website, put it on their own website pretending that they make it and they came up with those ideas. Not only is it disheartening. It’s losing American jobs.“