The other thing is that customers buying high end items care about where it was made, so you need to inform them. (Passing off the bikes as being manufactured in Japan but in fact the frame was made in China, would be a big blunder.)
It could be cheaper? Could also be more expensive as well.
In any case, if too many people play that game, then it only raises the tariff on Japan. I wouldn't assume these tariffs are fixed. They seem to be tied to trade deficit. So..
yeah.
No real way around them over time.
Might even piss the US government off if you try that. Which is kind of like playing with fire right now. It's not clear to me that this administration believes in rule of law in the strict sense that everyone adhered to in the past.
Strange days ahead.
I'm trying to figure out what the real story is.
When I read this I wonder if everything is a negotiating tactic:
"Trading partners have repeatedly blocked multilateral and plurilateral solutions, including in the context of new rounds of tariff negotiations and efforts to discipline non-tariff barriers."
https://www.whitehouse.gov/presidential-actions/2025/04/regu... (wow, long url)
It is eye opening to see people so casually speak of American "rulers". Not politicians. Not business leaders. Rulers. That's new.
At the same time, the Trump administration has taken issue with the independence of judiciary branch. When a judge ruled against one of their deportations, the executive branch ignored the ruling and argued that the judicial branch is subordinate. i.e. The king is above the law. So far, there have been no consequences. This is, quite literally, rule of a sort that hasn't been enjoyed by European monarchs since people became serious about enforcing the Magna Carta.
For the moment, Trump is ruling as an absolute monarch. It remains to be seen if there will be a response to assert the supremacy of law and the independence of the judiciary branch, or if the Republican controlled congress will assert it's right to control economic policy. If the law is not enforced, then Americans have a de facto king. Institutions do not defend themselves. People do.
Is it really that pejorative ?
That's a great explanation of the direct impact of tarriffs for a business like this.
Without introducing the tariffs as a long term position businesses will be less inclined to do the capital expenditure to manufacture in the US, even for businesses within the margin (mostly manufacturing with high energy inputs and low supply chain requirements) where it would be economical.
1. That's assuming that shipping, warehousing, transport, etc. do not rely upon foreign imports, including services. Chances are that more than one link in the supply chain will be hit either by the US tariffs or by the actual reciprocal tariffs from the other end [1].
2. That's also assuming that the tariffs will not have an impact on the sales of the company, which might adapt either by decreasing its margin (to increase sales) or by increasing it (either to try and compensate for lost sales or because it feels like the right time to hike prices).
[1] We shouldn't let ourselves be fooled by the word "reciprocal tariffs" used by Donald Trump. All these numbers are bogus. In January, EU tariffs on US goods were about 2-3%, not 39%, just as US tariffs on most EU goods.
The Peter Thiels of the world are who this move is for, not us plebes who spend time posting on HN.
That's kind of an asshole move. Did people react to having their communities and livelihoods damaged by neoliberalism, in a way not approved by economically advantaged software engineers? Don't try to solve their problems in a better way, try to fuck them even harder instead! We should teach 'em to get fucked and not complain!
If you want to target anyone, you should target the people who made a shit-ton of money off of neoliberalism, in a way that paved the path for Trump.
Not for building grass roots organizations. Not for building resiliency. Not for active protests, and organized opposition by the politicians.
I'm sure the political consultants got paid well though.
They often seek to create calamity and crisis - with Covid; spreading fear (of immigrants, etc.), hatred and violence; disrupting health, education, and housing; international peace and security (NATO, Ukraine, etc.). You never see them spreading calm and peace - crisis seems necessary to their movement.
Tanking the economy does the same thing, but it is a much bigger step that impacts many of their supporters. What is their exit plan?
I expect part of their plan is to blame others: They will blame Democrats somehow, and other political enemies - it doesn't need any basis because the Dems don't have any effective means of refuting it to the public; whatever the GOP says becomes reality. I suspect they'll use it to ramp up hatred and fear, blaming their current objects of hatred such as immigrants, minorities, certain religions (a traditional object of blame, the right has already been normalizing antisemitism and general prejudice - which makes antisemitism inevitable. Rogan recently hosted a conspiracy theorist blaming Jewish people for 9/11, for example - how long before does he blames them for the economy, 'undermining President Trump'), liberals, etc.
Edit: I did some rewording
Making America "stand on its own two feet" would give it a lot of freedom in making choices that are at odds with future super powerful China that is no longer benevolent.
The idea that relationships reduce your independence is almost childish, like a 18 year old who things they tie you down and they'll go it alone in life. It's through relationships that people - and nations - have power. The US by itself can't afford to do much. Now the, again, vast network of US allies - including in that theater Japan, South Korea, the Philippines, Australia, to an extent India - share the burden.
> freedom in making choices that are at odds with future super powerful China that is no longer benevolent.
The US has disconnected itself from China for years now. China has little influence politically in the US.
What happened was China became extremely nationalistic, threatened and abused everyone, and the US moved in and allied with all its new enemies.
However, as the US becomes extremely nationalistic, threatening and abusing everyone, China is now moving in and building relationships. It's their own back yard, so it is hard to compete if you act like just another nationalistic dicatatorship.
In that context, a lot of it does not make sense. Why the threats about annexing Canada or Greenland? Why the tariffs and extremely hostile rhetoric towards all allies? If you are preparing for a war, the stupidest thing you could do is to alienate your allies and push them toward your adversary. China is already approaching the EU, and I am sure they are negotiating with other key players too. China even agreed on a joint response to the tariffs with Japan and South Korea. Let that sink in - China, together with Japan and South Korea!
Logically this may well push many to greater trade with China.
China has a growing middle consumer class already greater in number than the total population of the USofA. China already has global scale manufacturing in place, now looking for fresh markets as US markets lower demand due to tariffs.
Smaller countries, say Australia, can trade their wagyu beef to China now that the US has tariff'd the US demand down towards zero .. in a number of ways the US has removed itself from global trade which will continue on with or without it.
And yeah I think your read on how they'll manage the fallout of this is correct.
As for Trump himself, I think he truly believes the rest of the world is taking advantage of the US and tariffs are a way of setting things right. My guess is that in his view, the country (or at the least the rich people he cares about) will benefit from all this.
This is such an interesting insight that would never have occurred to me and seems to have a lot of explanatory power.
The global system of free trade and human rights has been the most free, prosperous, and peaceful era of humanity by far. Whole nations lifted from deep poverty, such as China and India (with still more to be done!). Incredible prosperity for the wealthy. Freedom, self-determination, democracy and human rights as the global norms.
Why are we throwing it away again? Much could be done to reform it, but we'll just throw it out?
Because we haven't figured out how to square allowing people the freedom to work in the industries they please, no matter where in the world that industry has found itself, with allowing countries to strictly limit who is allowed inside its borders.
The "just learn to code" message never sat well with those who have no interest in coding and now they are rising up to try and take back, so to speak, the work they actually want to do. The far reaching consequences that go along with that are not of their personal concern.
Generally, many brands like e.g. Trek manufacture their highest end in Taiwan, but a lot of the mid- to high-level frames are still made in China, admittedly things might have changed since I last looked into this ~5 years ago.
I love to buy local, and I love to cycle, but what I can afford is $2K. Which is why I'm still riding the same Kestrel (full carbon w/ SRAM Force drivetrain) I got on Craigslist 8 years ago for $700, and on which I've since replaced a number of components, but have still spent < $2K overall. A comparable bike new these days would be at least $5K.
I was/am going to buy an Otso titanium frame, but they're made in Taiwan. Depending on the final price adjustment due to tariffs, it might actually be more cost effective for me to buy a Moots (made in America) frame to build.
Does the author not know other nations have been engaged in charging tariffs for a very long time?
And, unlike the US, none of them the envy of the world because of it. It is fascinating that the US has decided it wants to give up what it has to be become like them. It is akin to watching a supermodel get surgery to make themselves uglier because everyone they saw around them wasn't nearly as beautiful as they were. Likewise, we no doubt would come up with some kind of catchphrase to recognize that surprising event.
> Globalisation, only works for the biggest players and sharpers
That's just not true. Many small businesses sell their products worldwide via online marketplaces. Have you downloaded software from another country? Bought something on Alibaba?
> once it picks up speed, will be a good thing for comunitys worldwide
How about the people in those communities paying higher prices for worse goods - the extra money going into the pockets of large domestic corporations.
I would like to think this is some kind of 4-d chess game to avoid rate hikes and to devalue the dollar, but on implementation it will accomplish none of the above with a sprinkle of recession.
The method of enshittification, as I understand it, is to create businesses with a moat that prevents competition, cheapen the product in every way possible, and squeeze as much rent out as possible. Also, extract as much as possible via debt.
The tariffs are the moat. The debt I don't need to explain (though Dems aren't great with it either).
It's all the opposite of competitive business and free markets.
