Hi Folks,
So far, there are no tariffs on model trains coming out of China. There are a lot of individual items that are targeted for tariffs, and that will affect the prices you pay for various things here.
I GUARANTEE YOU. IF YOUR SOURCE FOR GOODS IS SLAPPED WITH A 10% TARIFF, YOU WILL PAY MORE FOR WHATEVER IT IS YOU ARE BUYING.
You can read about the proposed $200B in products targeted for tariffs from China below.
https://ustr.gov/sites/default...RN%207-10-2018_0.pdf
IMHO: These are shots across the bow, and are intended to get our trading partners to come to the table and negotiate. In the short term it is disruptive. In the long term, we may straighten out some of these markets to better sell our US made products in China as well as better protect our IP.
MY OBSERVATIONS: When I fly through Korea, I see many Chinese women buying huge amounts of cosmetics at the duty free shops at Incheon Airport. They unpack them from their boxes and pack their suitcases full. Because the products are unpacked they are considered for personal use by China customs. But once they bring them to China, they sell them on the EBAY of China, Baidu for 30-50% more, because there are 30 - 50% trade barriers for goods coming into China from anywhere and they can compete with that price. The Chinese people that I have met, LOVE AMERICAN MADE PRODUCTS and would buy them regularly if they were available there. So IMHO this is a good fight to fight.
Chevrolet , Buick and Ford are coveted car brand that sell very well in China. They are made in factories inside China, similarly, foreign cars are made in the US like Hondas made in KY, or Hyundai or others. I think these sales from factories in China make up 10% or more of profit for our US corporations. So some of the arguments about selling cars into China don't really make sense. It will be interesting how this plays out.
As for our model train factories in China, they are all small mom and pop businesses. We work closely together to make these models for you, and we are all dedicated to continuing as long as possible. So don't be too concerned about 3rd Rail / Sunset Models / GGD model trains. We got it under control.
Looking forward to hearing about our customers business dealings and your thoughts on the subject.
Scott
