ThatNorthernSound
New member
I've been waiting to pick up a pair of your speakers, and I hope I didn't wait too long. Any idea on how your prices will be affected for American customers by the recent tariff madness?
Any idea on how tariffs will affect shipments to US?
- Thread starter ThatNorthernSound
- Start date
As far as I understand Trump has decided that you need to pay a 10% tax on imports from Australia.
It's all a little bemusing if this intended to encourage American industry. As an example, if a US company wants to use Purifi speaker drivers and compete with ourselves, they now have to pay a 20% tax to import those drivers into the US from Denmark.
Same situation with amplifier components. This means US manufacturing costs go up dramatically. This will get passed on to the consumer.
As I said, bemusing.
It's all a little bemusing if this intended to encourage American industry. As an example, if a US company wants to use Purifi speaker drivers and compete with ourselves, they now have to pay a 20% tax to import those drivers into the US from Denmark.
Same situation with amplifier components. This means US manufacturing costs go up dramatically. This will get passed on to the consumer.
As I said, bemusing.
SmartOne_2000
Active member
From a customer point of view, let's hope Australian government lowers or removes its 10% tariff against the US, so that its all a wash. No tariffs from either side. Win-win for all involved.
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SmartOne_2000
Active member
Another perspective ...
There is no 10% tariff on American imports to Australia. Australia and America have (had) a free trade agreement which Trump has just ripped up.
In Australia we do have a 10% GST (goods and services tax) which applies to most products and services sold. However this applies to domestically manufactured goods and services as well as imported items.
To be blunt, the American public are being deceived if this GST is being termed as an import tariff.
Yes this above is correct. The tariff data Trump has produced is extraordinary nonsense. It is intended to deceive and create the impression that America is some kind of victim.
As I alluded to above, these policies will not help American manufacturers. In our specific example we are now more competitive against our direct American competitors.
However, the American consumer is being punished. They now have to pay considerably more for the same products whether imported or manufactured in America.
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Another thing to note referring to our specific example.
So as I describe above, a direct US competitor to ourselves has now had their manufacturing costs rise by at least 20%.
Now, Australia so far has not responded to Trumps tariffs. Australia has not imposed retaliatory tariffs on US imports. However, many other countries have.
So a US competitor to ourselves not only has a massive increase in manufacturing costs (20%), but in many export markets an additional 20% retaliatory import tariff has been imposed.
For example, a US manufactured Purifi based amplifier has increased in cost by 40% in Europe. 45% in Canada. This will just destroy that US manufacturers export market.
This of course takes no account of the anti US sentiment that has been created in the international community due to Trumps behaviour. Not only on tariffs but also with regard to his friendly overtures to that murderous dictator Putin. Consumers as a result are actively avoiding US products.
Please note that from what I see most people understand this is all to do with Trump. It has nothing to with America or the American people. We know where the blame lies and dont hold it against the American people.
So, you might think that as a business we would be laughing at all of this. Trump has gifted us a massive advantage.
However, we are not. We are very concerned for the American people, their prosperity, and the damaging effect Trump is having on your democracy and the wider global stability.
So as I describe above, a direct US competitor to ourselves has now had their manufacturing costs rise by at least 20%.
Now, Australia so far has not responded to Trumps tariffs. Australia has not imposed retaliatory tariffs on US imports. However, many other countries have.
So a US competitor to ourselves not only has a massive increase in manufacturing costs (20%), but in many export markets an additional 20% retaliatory import tariff has been imposed.
For example, a US manufactured Purifi based amplifier has increased in cost by 40% in Europe. 45% in Canada. This will just destroy that US manufacturers export market.
This of course takes no account of the anti US sentiment that has been created in the international community due to Trumps behaviour. Not only on tariffs but also with regard to his friendly overtures to that murderous dictator Putin. Consumers as a result are actively avoiding US products.
Please note that from what I see most people understand this is all to do with Trump. It has nothing to with America or the American people. We know where the blame lies and dont hold it against the American people.
So, you might think that as a business we would be laughing at all of this. Trump has gifted us a massive advantage.
However, we are not. We are very concerned for the American people, their prosperity, and the damaging effect Trump is having on your democracy and the wider global stability.
ThatNorthernSound
New member
I appreciate your thoughtful responses. My hope is that these tariffs are quickly catastrophic for his approval and we go back to open trade between our two nations. Nothing good will come of them for anyone, especially us Americans who want no part of this.
SmartOne_2000
Active member
So, is your 10% GST equivalent to our sales tax that varies by state? For example, you buy groceries and put the GST on top of that?
Yep.
We have had a free trade agreement with the US since 2005 and its been good for both countries. We do not have tariffs on US imports. We do block some agricultural items which is specifically for bio security reasons. That is to keep pests and disease out of Australia and applies to imports from any country, not just the US. It is not for economic reasons.
www.dfat.gov.au
Note that we import twice as much from the US as we export to it. We dont have a trade deficit with the US, yet still get whacked with a tariff!
Trump has now ripped that free trade agreement up.
Be under no illusion, Trumps tariffs and rhetoric about them is dishonest and only for the purpose of his own domestic political gain.
It won't achieve the objectives he claims and will only harm the ordinary American citizen.
Australia-United States FTA
The United States is the largest and most significant investor in Australia, with investment in Australia standing at $929 billion in 2020. The United States is also by far Australia's largest foreign investment destination, with investment in the US standing at $864 billion in 2020. Two-way...
Note that we import twice as much from the US as we export to it. We dont have a trade deficit with the US, yet still get whacked with a tariff!
Trump has now ripped that free trade agreement up.
Be under no illusion, Trumps tariffs and rhetoric about them is dishonest and only for the purpose of his own domestic political gain.
It won't achieve the objectives he claims and will only harm the ordinary American citizen.
SmartOne_2000
Active member
I remember the claim that Australia is concerned about pests and diseases from outsiders has been viewed by many in current and past administrations as an 'excuse' to keep American agriculture out of Australia. The argument was that American agriculture was safe, uninfected by pests and diseases and good for consumption. That has been the argument for years anyway between our two governments.
Australia takes bio security very seriously. We are currently in New South Wales state for the Australian hifi show. There are strict restrictions on what items can be moved interstate. You can't even take a banana on the plane from our home in Western Australia state to eat in NSW.
International travellers are screened at airports with sniffer dogs checking luggage for prohibited food items. It is very easy for pest and disease to be imported accidentally even from notionally "safe" countries such as the US.
So it's no excuse, its how we protect our domestic food production and utterly unique flora and fauna.
International travellers are screened at airports with sniffer dogs checking luggage for prohibited food items. It is very easy for pest and disease to be imported accidentally even from notionally "safe" countries such as the US.
So it's no excuse, its how we protect our domestic food production and utterly unique flora and fauna.
SmartOne_2000
Active member
I think you may find this video interesting that explains the equation Trump Administration used to calculate these tariffs
Yes, confirming its all extraordinary nonsense and that Trump is lying (yet again).
I'm afraid you are heading for big inflation, crashing markets and job losses. This is stuff a 1st year economics student can figure out would happen. The exact opposite of what Trump promised.
My sympathies.
Regarding agriculture, more lies from Trump:
7news.com.au
There are no barriers or tariffs on beef.
The US imports beef from Australia because its farmers cannot meet domestic demand. Australia does not import US beef as our farmers easily meet the domestic demand. Our countries are similar in size but population is 340 million V 26 million. US demand is much higher. It's that simple.
So, yet again, the only effect putting tariffs on Australian beef will have is to make beef more expensive for US consumers.
Trump’s bizarre attack on Aussie beef amid trade war
‘We haven’t been able to sell one hamburger in Australia ...’
7news.com.au
There are no barriers or tariffs on beef.
The US imports beef from Australia because its farmers cannot meet domestic demand. Australia does not import US beef as our farmers easily meet the domestic demand. Our countries are similar in size but population is 340 million V 26 million. US demand is much higher. It's that simple.
So, yet again, the only effect putting tariffs on Australian beef will have is to make beef more expensive for US consumers.
Excellent exemple of the effects.
Mondialisation only if it arranges Trump… unbelievable.
SmartOne_2000
Active member
Funny !
rumble.com
'Answer The Question!': Dem Senator Yells At Trump Trade Chief Over Tariffs During Hearing
'Answer The Question!': Dem Senator Yells At Trump Trade Chief Over Tariffs During Hearing
rumble.com
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It is funny. Note the persistent lies that we ban US beef, which we dont.
I see Trump has now backed off and is delaying tariffs. He will no doubt lie further and claim this u-turn as some kind of victory and that everyone else capitulated to his demands
I see Trump has now backed off and is delaying tariffs. He will no doubt lie further and claim this u-turn as some kind of victory and that everyone else capitulated to his demands
@SmartOne_2000 A question if I may.
Does the average American citizen understand that the foreign countries and manufacturers do not pay the tariffs that have been imposed? Do they understand that it is the US importers that pay (companies or individuals), which ultimately means the increased cost will be passed on to the US consumer?
That this is essentially a tax on them? Basically the same as putting sales tax up to 25% or more.
Secondly that America, like Australia and other highly developed countries, is high wage economy.
The highest cost any business has is employing people. This is the primary reason why manufacturing (particularly lower skilled manufacturing) has shifted to lower wage economies and countries. It's not just America, its happened here, UK and Europe too.
If punitive tariffs are imposed in an attempt to to exclude imports and to encourage manufacturing in the US, then due to those high wages those product manufacturing costs will rise dramatically if a product made in the US. This cost *will* get passed on to the consumer. So ordinary people will essentially be paying a tax to support US businesses that are fundamentally uncompetitive.
Doesn't that somewhat go against the American psyche?
In addition to this, the countries of the rest of the world are still trading with each other, for the most part without tariffs. If you make the assumption that "new" US manufacturing will appear as Trump suggests, how can it compete in export markets when its manufacturing costs are so much higher?
Does the average American citizen understand that the foreign countries and manufacturers do not pay the tariffs that have been imposed? Do they understand that it is the US importers that pay (companies or individuals), which ultimately means the increased cost will be passed on to the US consumer?
That this is essentially a tax on them? Basically the same as putting sales tax up to 25% or more.
Secondly that America, like Australia and other highly developed countries, is high wage economy.
The highest cost any business has is employing people. This is the primary reason why manufacturing (particularly lower skilled manufacturing) has shifted to lower wage economies and countries. It's not just America, its happened here, UK and Europe too.
If punitive tariffs are imposed in an attempt to to exclude imports and to encourage manufacturing in the US, then due to those high wages those product manufacturing costs will rise dramatically if a product made in the US. This cost *will* get passed on to the consumer. So ordinary people will essentially be paying a tax to support US businesses that are fundamentally uncompetitive.
Doesn't that somewhat go against the American psyche?
In addition to this, the countries of the rest of the world are still trading with each other, for the most part without tariffs. If you make the assumption that "new" US manufacturing will appear as Trump suggests, how can it compete in export markets when its manufacturing costs are so much higher?