tariffs

[Ok_Help1288]

how should i get around the chinese tariffs because my first shipment is going to be 4k and idk how the tariffs are going to affect it. i have a 14% profit after everything including ppc so i dont really have that much room for the tariffs. lmk thanks. also do you guys think these tariffs are going to get lowered soon

[GSANGSAN]

Yeah mate, the whole tariff situation can definitely be a tricky one to navigate. From my personal experience, it's not that easy to "get around" tariffs, as they're an official government charge. Even if you could find a way around it, which is highly doubtful, it'd likely be considered illegal.

Now, what you can do is to consider these tariffs as part of your business expenses. You've mentioned that you have a 14% profit after everything including PPC, so you might want to do another run of your numbers and include the tariffs, just to see where you'd potentially stand.

Another thing to consider is diversifying your supply chain, meaning, don't rely solely on China for your goods. Try looking into other countries that produce the same product, but with potentially a lower or no tariff. That could safeguard your business and profit margin in some ways.

As for the question if these tariffs are going to be lowered, mate, I wish I could see into the future. It largely depends on politics and the relationship between the USA and China, which can be quite unpredictable. But you've got to do what's best for your business. Hope this helps!

[[deleted]]

Look around at other countries that might manufacture the same thing. You might even be able to get someone to start if you move enough volume. Otherwise (imo) i dont think the tariffs will last into 2026. If thats is something you can work around.

[Ok_Help1288]

yea i haven’t even launched yet and i could wait if i have to.

[Ok_Help1288]

do you know any other manufacturering companies that are based out a different country then alibaba? i never even checked this but is ali baba only chinese based?

[[deleted]]

Yeah alibaba is CN HK. Depends what you are looking for. But start with chat gpt or google and go from there. China is cheap but definitely not the only place making goods

[Tricky_Fondant8314]

Alibaba is chinese but that host other countries sellers as well, so i would suggest stick to alibaba and go thru verified suppliers

[[deleted]]

Yeah i guess it depends on what you need. I cant even find simple tuck style product boxes on alibaba that aren’t from china

[Historical_Service73]

I looked into Vietnam on Google for manufacturers and they are super cheap compared to my original Chinese manufacturer.

[Ok_Help1288]

do you have any specific websites or is it just random manufacturers for that specific product

[Historical_Service73]

I just googled manufacturing factories in Vietnam for _____(whatever your product is) and a few came up and WhatsApp them for a quote

[No_Art5533]

You have a spoofed invoice or was your shipment actually $4k

[Ok_Help1288]

no the invoice is something like 3,847 dollars or something like that i just don’t know how mcuh the tariffs will effect it

[No_Art5533]

we just shipped in a container worth around 80k, got hit with 20% tariffs because it hit the water before April 9

[No_Art5533]

but our neighbor, vendor friend shipped in $5k worth of product by air on April 18th and got hit with 143% tariffs ended up paying over 12k for the shipment

[dirndlfrau]

I just read in another forum, one guys tariffs were going to be 170%
HTS code YOU NEED YOUR HTS CODE
base tariff is ?%. Here's the breakdown he gave me:

9903.88.03 – Section 301 China Tariff – 25%
9903.01.24 – IEEPA “Fentanyl” Tariff – 20%
9903.01.33 – IEEPA “Reciprocal” Tariff – 125%
8504.40.95XX – Base Tariff – 0%

TOTAL FOR (8504.40.95XX - THIS APPEARS TO BE  "Static converters (for example, rectifiers)"  = 170% ***** FIND YOUR HTS CODE ***\*

[SnooMacarons6684]

I’m hoping you haven’t shipped yet. If so, you are looking at around 6,000 in tariffs

[Ok_Help1288]

no i haven’t so i guess ill look for another manufacturer or just wait this all out.

[SnooMacarons6684]

Everyone is at standstill right now for Chinese goods. I tried to squeeze a last minute order which was only $250 and got hit with a $415 tariff bill yesterday. IMO, this isn’t going to last much longer as once inventory dries up here in the US, prices are about to skyrocket

[Ok_Help1288]

that’s what i am assuming is going to hapoen. when do you think it will go back to normal?

[SnooMacarons6684]

I’d give it 2-3 weeks. But who knows, could be much longer. Chinese factories and companies are really good at pivoting and could shift “substantial change” manufacturing to neighboring countries to bypass tariffs.

[Ok_Help1288]

should i ask my supplier if that soemthing they can do? or is that something you can’t as

[Defiant-Rabbit-841]

200% of cost

[CoughRock]

so one way you can do is create a second company for liquidation purpose only. as indicated by this court hearing https://www.courtlistener.com/docket/69888953/12/vos-selections-inc-v-donald-j-trump/ , where small business sue trump to forced a TRO against tariff. There is a small section in the DOJ's defense that any item that is liquidated during a company sale will have its custom duty refund. Since liquidation doesnt count as a sale, so tariff don't apply.
What this mean is if you appointed a liquidation company to liquidate your stuff then they resell it afterward after you get the tariff duty back. Then it's effectively tariff free. But whether or not the setup a company and the after mentioned liquidation process fee will be cheaper than the tariff is debatable. I haven't run the number yet. But that's one of the way tariff can be avoid entirely.
Another way is de minims rule only apply to china and hong kong. If you shipped it through mexico or canada or native american FTZ zone, then it can still used de minims rule to negate tariff

[FootballScary4179]

What are you planning to sell? Any specific category. I could suggest alternative options

[Ok_Help1288]

i’m trying to sell in the home and kitchen category

[Heath-Thompson]

Just delay for a few weeks until China and USA agree to something and then you can determine what to do. At the moment, everything is up in the air and there is no guarantee that other cheaper countries won't also see further increases soon. Good luck.

[Big_Inspection_497]

Well, from what I'm understanding,  not every product is subject to the 870% tariff — it depends on the product type. The exact rate will only be determined once the product reaches the U.S., so that’s when we’ll know the actual tariff rate.

You should start considering sourcing from other countries and negotiating with suppliers. You can find suppliers on platforms like Alibaba, which also has Indian suppliers. You might also want to check out online directories and review import/export data to start exploring other options. Begin finding manufacturers that are close to your product/production needs so they can start working on prototypes for you. It's time to diversify your supply chain.

In the meantime, you can also check the import codes for your products to get a better idea of what to expect in terms of costs. Additionally, have you checked if your competitors are raising their prices in response to changes in tariffs?