Tag Archives: taxes

Tariffs will hurt makers and encourage offshoring.

There was a time when my job depended on my skill wielding a soldering iron and diagnosing computer hardware failures. I haven’t done that in ‘a while’ but I do still build electronic circuits now-and-then.
 
I occasionally build prototype devices for a client and when I do the vast majority of the parts come from China.
 
The new tariffs proposed by the current administration will increase my costs by 25% on this parts. However, these new tariffs do not apply to finished consumer goods, like TVs, cell phones, and the gadgets I’m likely to be building. So I have two choices; pass along the increased cost of components to my clients, or, pay a company in China to build the gadget for me and import it as a ‘finished good’. Neither of these are good outcomes for the US Economy.
 
I’ve linked an article below from a well known ‘maker’. He presents the case in greater detail and also includes info. on what you can do to influence these new tariffs.