If you're a business used to selling at a certain price point, and the value proposition is established with your customers .... do you bother risking shattering that expectation if the future is unknown?
Do you risk customers saying "Oh crap my hobby that I did with Adafruit is now untenable ... well I'm out." vs "Well they're low on stock, I'll check back when this is all over."
I don't know if it is all or nothing but it seems like there's a lot of risk either way.
I worked with a lot of ecomm and especially crowdfunded companies that shipped to 100+ countries. Outside of the US, most consumers expect to have to pay import fees as a separate line item.
But this is new for US consumers. My hope is that US companies will add temporary price increases if they can't eat the tariffs in their existing margins and then reduce when tariffs are reduced. But my guess is that most companies will increase prices, blame the tariffs (rightfully so), but then not fully reduce prices if/when the tariffs decrease.
It's similar to what happened with tipping for takeout food during Covid. It's now a permanent tax.
> Outside of the US, most consumers expect to have to pay import fees as a separate line item.
Only if you buy from a foreign store directly which is relatively niche. It's much more common for an importer to pay the duties and then put the product in local stores.
Buying from a foreign store is not niche at all. I think it's insanely common. I think most people do it multiple times a year. Why would you think it's niche?
Part of the reason it's relatively niche is because people did it once, then didn't like the surprise customs bill that arrived. (Or they heard about this from a friend/colleague.)
On a podcast I listened to yesterday (Marketplace, from American Public Media), they mentioned that many businesses seem to be approaching this with an "We're in this together" type of attitude. They played some audio clips of business owners on their social media channels saying things like, "Don't worry [company name] is going to do absolutely everything to fight this. We'll do everything we can to avoid raising prices on you!"
The reality, of course, which they reveal when interviewed, is that they know they're completely powerless. In the best case, all they can do is delay the inevitable and they know it. This approach exists purely to keep themselves from being made into the enemy. As you noted, some business owners admitted to considering if they should just shutter their business too.
A company can do that on a few SKUs, but not their entire catalog. Pausing your entire revenue stream for more than a very short period means laying off staff, breaking leases, ending dividends (if you give them), taking a stock price hit (if you are public) etc. It's potentially a fatal move. Better to lose some customers than fold completely.
Part of what I'm referencing is that you don't know how much "lose some customers" even is. And if you buy stock and pay the tariffs, you might have stock that almost nobody wants...
When freight rates skyrocketed due to fuel prices, freight companies added a fuel surcharge, which reflects the additional cost of moving your product. Retailers need to do the same thing with the Republican Tariffs.
I don't understand how they can say its hostile to list tariffs when plenty of merchants will advertise "made in America" as a selling point. It's the same thing!
More to the point, if high tariffs are GOOD, we should be embracing them and the WH should be working to promote 'pride in tariffs!' messaging. Show how much you love your country and leader by how much in tariffs you pay! It'll be great, because you won't have to pay $3k income tax, just... an extra $5k in cost of living every year. Forever. Even when you stop working.
You'd think these big companies would want to stand up against this nonsense. Microsoft fired their law firm who sucked up to Trump's threats.
Why doesn't Wal-Mart or whoever make a loud pronouncement that they'll fund primary campaigns against any congressperson who supports these tariffs? These companies got Citizens United passed so they can spend unlimited amounts of political money, so why don't they use this power when their business is threatened like this?
Well, there's ~1,461 days in a presidential term and only just over a hundred have gone by so far. I think companies are concerned about focused and crippling reprisal.
To push him out of office would require impeachment, and that's basically an impossibility, even if there's a significant shift blue. At best there'd be some checks on his power, but he's ultimately still going to be POTUS with all the rights and (denied) responsibilities therein.
Because those companies rightly recognize that this administration is following no rules? Like, they were jumping on board for the fascism explicitly, businesses love fascism because it always kills labor rights. All you have to do is stay out of the ire of the dictator and you can do very well.
Like always, the morons who carry water for the fascists think they can "control" them, or radically underestimate the damage a moron with no accountability can do.
Amazon tried to barely show consumers the tariff hurt them, and Trump called Bezos directly, and that plan went away instantly.
Companies are rightly afraid of an administration that demonstrably has nobody stopping them from doing outright criminal and illegal things, and has a rabid fanbase ready to plan bombings of whoever is the target. They know the courts can't protect them. They know the law means nothing right now. They know an entire board can be murdered and the culprits pardoned if Trump feels like it.
Trump's entire shtick is that people who go against him in the Republican party already get primaried. He doesn't even need to ask his supporters, because loyalty is an expected and intrinsic part of the MAGA movement.
This is also assuming that future elections are free and fair, or at least follow previous US rules.
Because anyone making public moves against this will be punished further by the regime.
That's how autocracies work, my friend, you can't rules lawyer your way out of one, because the rules can always be changed to fuck you over some more.
And if you're big enough and you do that, you get bullied into submission by the White House. It's really hard to look at this administration's economic policies and not wonder whether there is deliberate sabotage going on. The best case scenario is these people are woefully uninformed and incompetent. These tariffs will hurt consumers, destroy small businesses, and simultaneously have the potential to enrich the largest players in the market. This never would have happened if our population was better educated and particularly more financially literate.
I mean Besset, Trump's Secretary of Treasury, was on Soros' team that broke the Bank of England. According to MAGA he is literally the Soros swamp that got rich basically breaking a friendly country.
I think it is a good choice to be transparent. I 100% agree with that. But I don't know that it really changes the "I'm out" dynamic or risk that they won't just show up again.
Also if there's a lot of "I'm out" you just bought a lot of stuff nobody wants to pay anything near the cost of.
Yeah, I don't know why any business with the capacity wouldn't be being explicit about this. If you're going to get hate, might as well try to point the hate in the right direction. It makes absolutely no sense to fall on that particular sword.
Yeah I would've expected that like other companies they'd buy sparingly and see what happens. That said, 42 units seems low for them, so maybe they nominally ship hundreds/thousands of that device and are doing a "magic number" trial run.
If you're a business used to selling at a certain price point, and the value proposition is established with your customers .... do you bother risking shattering that expectation if the future is unknown?
Do you risk customers saying "Oh crap my hobby that I did with Adafruit is now untenable ... well I'm out." vs "Well they're low on stock, I'll check back when this is all over."
I don't know if it is all or nothing but it seems like there's a lot of risk either way.