Saying this again: We are not adequately considering the effects on SMBs. Retailers but esp. manufacturers. 98.7% of domestic manufacturers have <50 employees. Those margins will not hold up and there will be exits. ~50% of manu employment is from SMBs. Easily could be catastrophic for labor mkt - ThreadSky

hallmark-nick.bsky.social • 8 hours ago

Saying this again: We are not adequately considering the effects on SMBs. Retailers but esp. manufacturers. 98.7% of domestic manufacturers have <50 employees. Those margins will not hold up and there will be exits. ~50% of manu employment is from SMBs. Easily could be catastrophic for labor mkt

Reposted from David Wessel

Apollo’s Torsten Slok: Imports from China are not only t-shirts, shoes, and TV monitors purchased by US consumers. Almost 40% of imports from China are intermediate goods used in US production.

Comments

rivasad.bsky.social•7 hours ago

I was shocked at how the tariffs are basically bankrupting small board game companies. No, we aren’t “re-shoring” board game production, these small businesses will just disappear. It’s awful for board game geeks like me

balthazarspeedboat.bsky.social•5 hours ago

Similarly, ttrpgs. Printing in china is so so much cheaper!

accidentalflyer.bsky.social•4 hours ago

Why shocked when the math is so obvious. And of course Trump will be more than happy to see American board game companies, all of them relatively small, go bankrupt. Trump has always hated small businesses.

rivasad.bsky.social•4 hours ago

Well, shocked from the standpoint that I don’t spend a lot of time thinking about the margins of board game manufacturers! I just like to buy and play their games as a satisfied customer!

accidentalflyer.bsky.social•4 hours ago

Was just using rule of thumb: SMB like that usually have only 50% gross margin, and once you add in G&A, employee salaries, utilities etc., they'd be lucky to clear 10% margin on net profit. So Trump's tariff easily wipes out gross margin on top before adding other expenses.

hallmark-nick.bsky.social•7 hours ago

I don’t know board games but my partners business is net exporter and may be forced to move production overseas. Those are well above market wage jobs in rural SC that will be gone. Cheaper to import the finished prod from UK/EU than the inputs from China

traceyryniec.bsky.social•5 hours ago

Don't worry. I was told on the other site that Trump "folded" this afternoon and all of this is over. (sarcasm)

opinionevaluator.bsky.social•7 hours ago

I dunno, sounds like an excellent opportunity for private equity to buy up assets dirt cheap.

You show me one example of that being bad for workers/consumers/everyone who isn’t private equity.

partly-evil.bsky.social•4 hours ago

The uncertainty is also having an impact - a friend's business sources materials from US suppliers, but their main supplier just switched from net 30 invoicing to upfront payments. Cash flow majorly affected in a 10-person operation.

chiffonelle29.bsky.social•5 hours ago

😥😥😥😥

yountvillewjs.bsky.social•6 hours ago

we are cooked.

danlwarren.bsky.social•7 hours ago

I do not understand why this will affect Super Mario Brothers

hallmark-nick.bsky.social•7 hours ago

Plumbing products will get really expensive. Those guys are a family business no way they can hold out.

danlwarren.bsky.social•7 hours ago

Oh shit fair point

repetitiveuser.bsky.social•7 hours ago

Holy hell

iplayguitarbad.bsky.social•7 hours ago

I think that "we" is doing a lot of heavy lifting. Seems like every opponent of these insane tariffs has been talking about the impact on SMBs.

pndrp.bsky.social•6 hours ago

I think China’s trade negotiators have considered this and are waiting for this effect to manifest more widely before they begin asking Trump what he will give them to stop the trade war.

accidentalflyer.bsky.social•4 hours ago

US market had gone down to 14% of total China exports and less than 3% of their GDP BEFORE the trade war started. China can easily just tell Trump to go f*ck himself.

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