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shedman

US Import duties on Chinese products

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Hey, we need to defend our country - as the President said, it's a national security issue.  Too many Athearn diesels and  . .  yeah I don't get it either.

Perhaps the Chinese sound chips are actually two-way transmitters and are recording our private conversations and transmitting them back to Beijing.   Loose lips sink ships!!

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Perhaps the Chinese sound chips are actually two-way transmitters and are recording our private conversations and transmitting them back to Beijing.   Loose lips sink ships!!

 

You may joke, but the latest generation of smartphones from China have been subject to scrutiny by GCHQ, no less, to analyse the code for the operating system to see if there might be any back-doors which would enable this.

https://pocketnow.com/gchq-huawei-security-uk

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Just received Rapido News 103 which includes the following on Chinese factory closings and tariffs. This is distributed by email and I don't think reproducing here will violate any copyright.

 

China Factory Closure

 

Many of you have heard the news by now that a major factory that produces model trains in China has shut down with very little notice. Affatech was owned by K.K. Ku (who used to live near me in Toronto) and he made models for many North American and European manufacturers. We found out about it accidentally as our junior production manager used to work at Affa and still knows everyone there. We have already reached out to some of the manufacturers affected and have offered the use of our factories.

 

This is not the first time a closure like this has happened and it won't be the last. Businesses all over the world shut down for a variety of reasons. In this case, K.K. was ready to retire and his kids didn't want to take over the business.

 

In light of this, I want to dispel some of the myths about production in China. Regular readers will know most of this already.

 

1. We can't bring production back here.

 

The industry of super-detailed model trains was entirely home-grown. Home grown in Dongguan, China, that is. It never existed here. If you're about to shout "Kadee" tell me how many locomotives they bring out. And if you're about to shout "Micro-Trains" or "Accurail" tell me how many parts are assembled on their models compared to the super-detailed models made in China. These jobs can't come back to the USA or Canada because they never existed here.

 

2. This has nothing to do with tariffs.

 

There are currently no duties on model trains, which are classified as toys. If tariffs are placed on toys made in China, everyone's Christmas shopping bill will increase by 25%, and it will likely cause a revolution on the streets of America. I doubt that any tariffs will be placed on toys, and I hope for all our sakes that I am right. It would cost hundreds of thousands of American jobs, including the jobs of most hobby store employees. If you are worried about it, I suggest you write to your local Congressman or Congresswoman and express your concerns. Remember - they work for you.

 

3. Have no worries.

 

Back in 2007 Rapido lost its factory, but in that case the owner stole the money and ran away. We eventually got our moulds out of the locked building. It was stressful and difficult but we got through it. The same will happen with the manufacturers affected now. If these guys got through the recession, they will get through this hiccup. Rapido's two factories are still open and we're expanding to meet the expected surge in demand. There are plenty of other factories in China that can make the models as well. So have no fear - the industry is not yet in dire peril!

Edited by Jeff Smith

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Currently 0% duty on model trains imported from anywhere to the USA

 

John P

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Perhaps the question should be will the tariffs affect the amount of disposable income available for the hobby. If buying the next car costs several thousand more .... can I buy that next locomotive?

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Perhaps the question should be will the tariffs affect the amount of disposable income available for the hobby. If buying the next car costs several thousand more .... can I buy that next locomotive?

 

Indeed, that is the question. Models are a discretionary purchase and the evidence would seem to indicate they are not that price sensitive (well, compared to some other things). The issue isn't really whether tariffs are imposed on models but the combination of a potential economic down turn if a full blown trade war breaks out and the effect on discretionary spending if a whole lot of other more important things suddenly become more expensive.

  • Agree 1

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Posted (edited)

Well, according to the administration, the Chinese are paying the tariffs so it shouldn't affect the prices we see.  :huh:

Edited by davefromacrossthepond
Forgot the emoji.

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Note that despite what those articles indicate the relevant tariff was only 10% not 25%, though Trump did later apparently increase it to 15% though it doesn't take effect on toys until December 15th.

 

As for what happens between now and December 15th, I don't think even a crystal ball could help predict Trump.

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Atlas have put the following advice in their latest product announcement:

 

"Prices are subject to a potential price increase pending future tariff implementation"

 

Suspect all suppliers will operate under a similiar policy.

 

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