Trump tariffs & tool prices

[worker]

Trump has announced he wants to apply tariffs to China, Canada & Mexico. Putting the politics aside, do you think it will have an impact on tool prices in the UK? I think it's fair to say applying tariffs can end up with unintended consequences.

I've always eyed up Lie-Nielsen planes but hesitated, maybe this is the perfect excuse to make the jump.

 

[TRITON]

And China, Canada and Mexico have replied with 'Come on if you think you're hard enough'

 

[Doug B]

. Putting the politics aside,

You’ll be lucky

As for buying tools I’ve always bought the best I could afford working on the premise if I come to sell them they will hold there value, now I only own one Lie Nielsen plane but judging by it’s current price for once I was right.

 

[Hypnotic Chimera]

And China, Canada and Mexico have replied with 'Come on if you think you're hard enough'

LOL

Trump: "Tariffs, blah blah."
Mexico: "Come at me, bro!"

 

[Spectric]

No one wins when there are trade wars, it just pushes up prices for everyone so again we seem to revert to some form of war rather than become more competative to try and level up the playing field.

 

[Blackswanwood]

No one really knows how this will play out.

It’s unlikely in my opinion that the price of LN planes will go down as a result of Trump introducing tariffs so if you want an excuse you’ve got one.

 

[Phil Pascoe]

It doesn't matter a jot what the world does, UK prices will keep going up.

 

[niall Y]

Attractive as it is, at some point all these cheap imports from China will have to stop. If allowed to go on unchecked they will gradually hollow out all the production facilities in America and Europe.

Free-trade is treated like some holy writ, whereas it also has it's bad sides as well as it's good. There are already tariffs on some Chinese goods where the trade was deemed to be unfair.

Further tariffs will have to be applied so safeguard a basic production facility in the countries of the West. Cheaper imported goods are allowing the wages of the poorer in society to stagnate. At some point action of sorts will have to be taken, and whoever makes the first move will probably suffer the most.


We have become addicted to cheap goods but at some point we will have to go 'cold turkey' It is best to do this sooner rather than later..Or become so dependant that when the 'cheap imports' eventually become 'dear imports' our economies will not survive the shock.

 

[RobinBHM]

Trump has announced he wants to apply tariffs to China, Canada & Mexico. Putting the politics aside, do you think it will have an impact on tool prices in the UK? I think it's fair to say applying tariffs can end up with unintended consequences.

I've always eyed up Lie-Nielsen planes but hesitated, maybe this is the perfect excuse to make the jump.

It is very hard to say how it will affect the UK

America can only impose tariffs on imports into America, so it’s possible that an American toolmaker that imports parts might end up putting up prices for U.K. stockists.


What we don’t know is if tariff war on China means China starts dumping stuff onto Europe and what that would do

 

[SammyQ]

What we don’t know is if tariff war on China means China starts dumping stuff onto Europe and what that would do

Robin, with the utmost respect, because I largely concur with you, are far-east theatre industries not already doing this? Axminster is a prime example, but if we add in Alidepressed and similar ilk, bingo, we have Sino-flavoured workshops. Just sayin'...

 

[RobinBHM]

Robin, with the utmost respect, because I largely concur with you, are far-east theatre industries not already doing this? Axminster is a prime example, but if we add in Alidepressed and similar ilk, bingo, we have Sino-flavoured workshops. Just sayin'...

yes indeed, I believe the biggest concern for EU region is the dumping of raw materials such as aluminium and steel.

Axminster have increasingly been doing it for decades, I bought a floorstanding drill press, their white range back in 2002 that was Chinesium, European labour rates makes very few things affordable these days.........even European stuff like Felder have Chinese parts



Im not sure how it would affect American tool brands selling in the UK, say Milwaukee, Dewalt or say Apple......my guess is these get shipped direct from say Mexico, China Vietnam etc, so maybe they would avoid an american tariff, I dont know if tariffs are based on physical goods or the paperwork.

I personally think its going to be very hard to determine what impact it will have in the UK for us buyers.

All I know is Im glad to not be living in america right now

 

[niemeyjt]

Bolting stable doors comes to mind - we should have contained China years ago.

As for OP - and LN planes - first, will any indirect tariffs have an effect on UK-USD exchange rate and does OP buy directly or from an importer.

If the latter, I doubt an importer will say "whoopee, the GBP has risen so I must cut my prices"

If the former, when if the GBP rises then buying directly may save money.

But if the markets say "Trump's a genius - we must buy USD" then expect GBP to fall and prices to rise.

Trump will tariff imports - so it wont affect US exports - unless the UK / EU retaliates - in which case maybe prices will rise

LN are in Maine - which seems a mix of Democrat representatives and Republican senators - so LN may not be a prime target for EU sanctions

In short, who knows, just buy now and start enjoying it earlier.

 

[Hypnotic Chimera]

Attractive as it is, at some point all these cheap imports from China will have to stop. If allowed to go on unchecked they will gradually hollow out all the production facilities in America and Europe.

Free-trade is treated like some holy writ, whereas it also has it's bad sides as well as it's good. There are already tariffs on some Chinese goods where the trade was deemed to be unfair.

Further tariffs will have to be applied so safeguard a basic production facility in the countries of the West. Cheaper imported goods are allowing the wages of the poorer in society to stagnate. At some point action of sorts will have to be taken, and whoever makes the first move will probably suffer the most.


We have become addicted to cheap goods but at some point we will have to go 'cold turkey' It is best to do this sooner rather than later..Or become so dependant that when the 'cheap imports' eventually become 'dear imports' our economies will not survive the shock.

Apparently, businesses can't afford to recruit UK workers - even on minimum wage.

I do agree with you, wholeheartedly, but we keep being told that the UK business community is flapping at today's really small amount of business cost increase. Your point, which I've already said I agree with, surely wouldn't survive first contact in the UK, if the continual whinging from UK business we keep hearing is true?

 

[paulrbarnard]

No one really knows how this will play out.

It’s unlikely in my opinion that the price of LN planes will go down as a result of Trump introducing tariffs so if you want an excuse you’ve got one.

Logically there should be no impact to the price of an LN plane as they are fully made in US. There maybe a side effect due to wage increases to reflect cost of living rises as imported goods to the US get more expensive. That certainly won’t be the case of other made in US goods where they contain imported components. They will all be more expensive.

 

[robgul]

The tariff stuff he's spouting will probably go the way that a lot of his first time around threats went - fizzled out very quickly once he was in office on the golf course.

He's met his main goal to get off the legal cases so I'm not expecting him to do a great deal for the US as he can only be POTUS for 4 years (if his diet doesn't kill him before then) so he may just as well cruise along, continuig to grift.

 

[niemeyjt]

The tariff stuff he's spouting will probably go the way that a lot of his first time around threats went - fizzled out very quickly once he was in office on the golf course.

He's met his main goal to get off the legal cases so I'm not expecting him to do a great deal for the US as he can only be POTUS for 4 years (if his diet doesn't kill him before then) so he may just as well cruise along, continuig to grift.

Except he is rumoured to want to change the constitution to lift the two term limit.

Interesting times.

 

[Lons]

It's hard to say if any tariffs will make much difference here but the value of the £ against the $ will and it's currently low and not likely to get a lot higher quickly.