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US Tariffs, Sigh!

Patentagosse

New Member
We buy direct from 3M, and our rep briefed us on the tariff situation. Commercial products and certain reflectives (Glass beads) are being affected by the tarrifs, but traffic reflectives are not, as 3M is eating the increase on traffic... My guess is because even though they have a force majeure clause in their contract.... traffic pricing is under contract for us, and they don't want to increase it - He doesn't have an exact # for it yet, but said it'll be happening shortly.


We have a contract we won for BC thats worth 140K... Our material cost is 60K, and it's a special order product from US 3M. It's on the list of items that will be receiving a tariff price increase.... It will be between a 15, and a 20K hit... which will knock all the proffit out of the job. Luckly we just re-signed the contract and did our own price is subject to tarrifs clause in it... But that'll still be a fun phone call, and I'm betting they put the order on hold until the tariffs go away.



I spoke to our grimco rep, and was told theyre in talks with all their suppliers right now, and from what he's hearing all vinyl will be going up on price, even some of their Canadian made vinyl - The tarrifs are so broad that somewhere in the supply chain, some part of it is produced or purchased in USA.

[Edit] I havent panic bought too much... I bought most of the epson ink that was in stock, between 2-3 of each color, We normally keep 2 on hand... so adding an extra wasn't too bad. I've been doubling up on some stock... Nikkalite reflective for example, I usually bring in 5 30" and 5 48" rolls at a time since it comes from USA - but with japan being hit hard with tarrifs... this time we brought in 10 of each roll, about a 3 month supply. Traffic products are what we mainly worried about - Hard to increase traffic pricing when it's under contract for most municipalities'. Commercial products like IJ40 / 180... Those generally get quoted at the time of the job, so if the product costs 25% more... it's not hard to increase the price to make up for it.

We buy Hi-coroplast, which is Canadian produced, so it wont be affected - Our supplier is bringing in Aluminum composite from China instead of USA... supposedly same brand, Aluminum already comes direct from China or Canada.

Polyplatye we use quite a bit of... manufactured in USA, usually we buy it by the skid and have a 6 month supply... But we'll be pushing people to alternatives, and only bringing in what we need. I dont know if the other PVC/Komacel type products are from US or not... Most of the stuff has an alternative.

There was an announcement today from Express Sign Products (ON & AB) that clearly mentioned the products we use from USA will no be affected by actual tarrifs. For the moment. So if you're experiencing a price increase from your canadian distributors because of so-called tarrifs, that might be investigated.
 

ikarasu

Active Member
There was an announcement today from Express Sign Products (ON & AB) that clearly mentioned the products we use from USA will no be affected by actual tarrifs. For the moment. So if you're experiencing a price increase from your canadian distributors because of so-called tarrifs, that might be investigated.
It's not affected by tarrifs coming into Canada. But USA has tarrifs on the raw materials coming into their country... So pricing is going up because their cost is higher.

3m has confirmed this directly with us, as well as Grimco - not just in 3m materials, but Avery as well, all Epson inks are going up - I'm told pretty much every product coming from USA is going up within the next month as local inventory dwindles and they place a re-order.
 

CanuckSigns

Active Member
It's not affected by tarrifs coming into Canada. But USA has tarrifs on the raw materials coming into their country... So pricing is going up because their cost is higher.

3m has confirmed this directly with us, as well as Grimco - not just in 3m materials, but Avery as well, all Epson inks are going up - I'm told pretty much every product coming from USA is going up within the next month as local inventory dwindles and they place a re-order.
Yup, in Canada our supply chains are usually reliant on USA warehousing product and our distributors order from the US warehouse. Since everything entering the US now has a minimum 10% tariff applied, that gets passed on to everyone. If this keeps up I can see Canada starting to warehouse things in this country instead.
 

Geneva Olson

Expert Storyteller
Again... You must be confusing me with the other poster. You asked me for evidence, I posted evidence, The topic changed. I never asked you for evidence on anything.... I never said you're wrong about this, and had you provide a link, or a news article or anything... Show me one, just one example where you provided me any sort of evidence that I ignored.

Hope you don't pull a Gino and say you don't care / have time to look it through! Genuinely interested in even one time you felt like I did that.


And if you'd like me to spend 5 minutes tonight to go back, and back up my opinion that you change the topic once something is proven, Ill gladly do it.
and I gave you articles and you refused to even acknowledge them. yet you claim I didn't show you anything.
 

Geneva Olson

Expert Storyteller
"tariffs aren't taxes" I swear I lose braincells everytime I click on this thread.
When I said "tariff's arent taxes". I'm trying to differentiate between tariffs and taxes in this instance. If china sells a widget and we've "taxed/tariffed" them 145%, and america sells the same widget without the "tax/tariff", you're going to pay less buying the american product (which is what it should be). ..and then there's tax on that.
sorry for not explaining what I was talking about....people are so quick to call someone stupid on this forum...
 

Geneva Olson

Expert Storyteller
As an Australian, I find the confusion on who pays taxes baffling. Fortunately, we in the trade Don't buy much at all from the US. So we don't get affected by the shenanigans going on over there.
But. A tarrif is a TAX paid by the consumer, not the country of origin.
The US has put tarrifs on our beef, so China is now buying more than the USA did. So, I honestly don't see the the endgame that your current leadership has in mind.
Unless it is stock manipulation.
But, that is just my view from down under.
I wish everyone the best.
the end game is for us to manufacture and build our own products. over the years, our government has pushed our own companies to stop producing and encouraged us to buy overseas.


occams razor man. the most obvious answer is the answer.
 

damonCA21

Active Member
When I said "tariff's arent taxes". I'm trying to differentiate between tariffs and taxes in this instance. If china sells a widget and we've "taxed/tariffed" them 145%, and america sells the same widget without the "tax/tariff", you're going to pay less buying the american product (which is what it should be). ..and then there's tax on that.
sorry for not explaining what I was talking about....people are so quick to call someone stupid on this forum...
That is fine in theory, but the the problem with Trumps plan is America don't produce most items., or if a manufacturer does they often source the parts to make them from China. Yes, America can set up factories to make things within the country, but that is going to take years, plus training people to be able to make them.
Any way you look at it the end user is going to pay more
 

damonCA21

Active Member
the end game is for us to manufacture and build our own products. over the years, our government has pushed our own companies to stop producing and encouraged us to buy overseas.


occams razor man. the most obvious answer is the answer.
How many years will it take the US to set up the manufacturing for all those technology items people buy every day? Are you happy paying twice as much for your next mobile phone for the next 3 to 5 years?
 

Geneva Olson

Expert Storyteller
That is fine in theory, but the the problem with Trumps plan is America don't produce most items., or if a manufacturer does they often source the parts to make them from China. Yes, America can set up factories to make things within the country, but that is going to take years, plus training people to be able to make them.
Any way you look at it the end user is going to pay more
America ALREADY has the factories. we just stopped production. Production can start happening again. It's not like we destroyed the factories.
 

damonCA21

Active Member
America ALREADY has the factories. we just stopped production. Production can start happening again. It's not like we destroyed the factories.
Really? A factory isn't just an empty building. America don't have the facility to mass produce the electronic components needed for all the tech products people buy every year. How many millions of iphones sell each year?
 

Geneva Olson

Expert Storyteller
Really? A factory isn't just an empty building. America don't have the facility to mass produce the electronic components needed for all the tech products people buy every year. How many millions of iphones sell each year?
Texas Instruments and Samsung have plants here in Texas. Theyve been mass producing electronic components for literally YEARS.
 

Geneva Olson

Expert Storyteller
So that is two plants. What about the other few thousand needed? Do you have any idea how many electronic components the US needs every year?
nope. but i'm guessing samsung and TI has that data. heck I just googled and found that intel makes chips in arizona, new mexico, oregon and ohio....damn looks like we have AT LEAST 3 electronic component companies.
 

victor bogdanov

Active Member
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This should free up some man power so the USA can get the textile mills running domestically, why export airplanes when we can make t shirts instead
 

ikarasu

Active Member
nope. but i'm guessing samsung and TI has that data. heck I just googled and found that intel makes chips in arizona, new mexico, oregon and ohio....damn looks like we have AT LEAST 3 electronic component companies.
Can your shop supply signs to all of America? You have a shop.... And you're currently producing signs, should be easy for you to scale.up and supply signs to 400 million people, since you already have a shop, right?
 
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