Will US trade war affect Prices?


#1

The USA has increased tariffs by 25% on over 57,000 items being produced in China, which will be put into effect by the U.S. Customs and Border Service on all categories of the 57,000 plus goods leaving China after 12:01 a.m. EDT (0401 GMT) on Friday (today 10th May).
Many US machinery makers have recently ‘gone chinese’ - having their machinery manufactured in China to boost profits (I.e. cheaper to manufacture there and import than continue to manufacture in the USA), through still selling their machines at USA manufactured prices… I don’t know if woodworking and/or metalworking machinery will be affected, but if it is this is bound to rebound on those manufacturers who have ‘gone chinese’… interestingly, here in the UK our prices are artificially increased via having to add high EU tariffs to imports from outside the EU, so it seems pretty obvious, that for most items, including woodworking and metalworking machinery imported from China, leaving the EU on WTO terms, whereby we could reduce tariffs or have tariff free trade, could effectively reduce costs and prices of such machinery and a whole lot of other goods… the interesting part is of course that in this trade war, imports from the USA (manufactured in China) are likely to soar in cost too…


#2

Hi Stu.
I pointed out some time ago, that even many Ax tools are Chinese in origin, whether Trump knows or cares that many of his precious US manufacturers actually re-badge Chinese kit is a point in question.

I for one, certainly hope we get ‘out’, “deal or no deal” and we’ll prosper and set advantageous trade deals of our own, with whomever.

However, as we pay over the odds on our own current Chinese imports,(just check the asking prices in pounds sterling from Chinese “Harvey Machine Co” , now badged as Ax) . Perhaps these will then be price dropped, but don’t hold your breath. :wink:

Barry


#3

Hi, Barry
Yes I agree mate…I think we in the UK have got too used to sky high prices (rip off Britain), and even tools and machinery manufactured within the EU - there’s still a few - seem to like to inflate their prices to ensure their products prices are on a par with those imported from outside the EU, with high tariffs added…

I think we’re both of an age to recognise how the prices of tools and machinery have skyrocketed over recent years, even though it seems by getting these manufactured (mainly) in the Far East, with Labour costs a fraction of those in the west, and with cheap shipping costs, ‘importers’…as we could hardly call them manufacturers any longer if they’ve outsourced that task, charge top dollar for them…

The latest rip off of course is the cost of batteries for cordless tools…all of those batteries of course, also manufactured you know where…


#4

Unfortunately, leaving with Mays deal means no independent trade deals…and imports still attracting high EU ‘add-on’ tariffs…as we’ll be tied into the EU single market and EU Customs Union for god knows how long…only able to Leave when the remaining EU member states say we can…no doubt after the UK has been milked dry to pay for their ambitions…!


#5

I and many others that live in France use Axminster because even tools and marques that we can find here are cheaper. The quality of UKJ stuff is far superior as are the larger power tools. I do hope that the B word doesn’t inflate prices for us.


#6

Peter… not sure which bit you got the wrong way around, you use Axminster because it’s cheaper, or not, as French kit is cheaper? Yes UKJ kit is well made, but boy, they sure charge for it…!

Within Europe, which is essentially a protectionist closed shop so far as the free market is concerned, which is why the EU place high tariffs on imports from outside the EU market, so goods within the EU should be, within reason, best price…until you add the 20% VAT (VAT is I understand an EU Invention)…which wops the price up…

I think it depend which version of the ‘B’ word you refer to…Mrs Mays Deal is actually the EU Treaty from hell…it delivers Brexit in name only…everything will stay…including the UK…the only difference is we’re tied in for god knows how long, and can only leave if the remaining member states say we can…!! Some deal eh…

The other ‘B’ word is to actually leave the EU, on WTO Terms…the only alternative, and still enshrined in UK Law, although you would not have thought so listening to that bunch of idiots in the Commons…and some Tory Party PM hopefull’s… initially it might mean you have to buy UK goods with EU tariffs added…and then VAT or whatever it’s called in France added too… BUT (a big but), the EU undoubtedly has a great deal to lose by any loss of trade with the UK…so my guess is that to save face, save trade, jobs and EU Member states economies…if the UK leave on WTO Terms, the EU Commission will in very short order be after a new deal with the UK…or a lot more heads (forgive the French pun) in the EU and Member states will roll…

I think everyone need to remember that we have only been in the EU long enough to recognise that we don’t belong, and do not have the ‘republican’ mindset for a ‘Federal Europe’…we, although most don’t recognise it either, are different… and of course before the EU we traded very successfully world wide, built our Country by doing so… unfortunately, since we joined the ‘Common Market’ which morphed into the EU…our standards have gone, our manufacturing has gone, and most of all our will to get on and make the best of things and succeed has gone…all down to our loss of world trade and being ‘locked’ into a false economy with a closed and protected market…hopefully soon, things will change, and we will see a new resurgence of ‘Backing Britain’…and people starting to take pride in this country again, instead of calling UK Patriots, Fascists and Racists…which as an British Patriot I can affirm I am not…


#7

Generally speaking tools in France are either more expensive than you can find at Axminster or other online sources and or inferior quality.
I subscribe to the maxim of buy good quality and it will last rather than buy cheap and expect to buy again.
One problem is if you try to buy say Incra direct from the US you get stung for import tax and it becomes eye wateringly expensive. So UKJ stuff whilst the UK is in the EU is affordable and similar quality.


#8

Hi, Peter
Thank you for explaining…one thing I would say is that Axminster is not always, regardless of their policy on pricing, the least expensive to buy from…for example they are currently selling Festool CTL dust extractors, and yes Festool is an expensive brand, but I obtained the same model, a CTL Midi 240v from another supplier for £45 less than Axminster are selling the tool for, and also got free delivery, two days later. That particular company was N&B (Nuts & Bolts) in Weston super mare, who are also a Festool System Supplier. So I think it also pays to ‘shop around’…I’ve found that going to a site and copying the headline name of the tool your after, then pasting that into Google, often reaps rewards on saving a few quid, providing you check whether delivery is free or more expensive, depending on the cost of what you are buying…and of course where you are…
Personally, I think if we can ‘do a deal’ With the USA that removes tariffs and allows free trade, We in the UK will benefit a lot from being able to obtain some of that fantastic US kit a lot cheaper (less the import duty and thereby reduced VAT - or who knows, maybe even reduced VAT once we are out of the EU).
Yes, I know, this may not be of great advantage if you are based in France and not the UK, but realistically, even if we leave without the dreaded EU Withdrawal Treaty ‘offered’ by Brussels, I see the EU wanting to come back to the table and renegotiate trade…it’s in their interest to do so…I can’t see the governments of member states who products sell to the UK as one of their biggest markets, sitting back and saying ‘oh well, never mind’…they will be hanging out the EU Commission to get a deal done so they can continue to do business, and not go out of business… and I think before very long free trade will be resumed, unless the EU are either idiots or too stubborn, and just decide to let Member states businesses go to the wall…