The Impact of all the new Tariffs

[davef]

We’ve received numerous inquiries about how the newly imposed tariffs will affect our pricing. Given the importance of this issue, I felt it necessary to address it publicly and create a forum thread for easy reference.

First and foremost, yes – the tariffs will have an impact, and we will be implementing price increases on all our products. However, the good news is that, thanks to our business model and our partnerships with suppliers like SEAS (Norway) and RAAL (Serbia) our Sierra and ELX lines will be less affected.

That being said, our profit margins are already very tight, and we have no choice but to adjust in response to how this trade conflict is affecting our bottom line. To mitigate the impact on our customers, we have decided to absorb a portion of these additional costs. Unlike some companies, if the tariffs are reduced or eliminated, we will adjust our pricing accordingly.

This is a complex situation, especially for small manufacturers. The frequent changes to tariff rates and the constant threat of further increases make it incredibly difficult to forecast and plan effectively. Additionally, many of our U.S.-based suppliers have already raised their prices, which, in turn, impacts us.

You can expect price increases in the very near future, and we ask for your understanding. Please know that this decision is not motivated by greed or a desire for higher profits. It’s simply necessary to maintain a profit margin that allows us to continue operating successfully and sustain the high standards you've come to expect from Ascend Acoustics.

I remain hopeful that this trade dispute and the high tariffs will be short-lived. Ultimately, the hope is that, once resolved, our products will no longer face high tariffs when exporting to various countries, which would significantly enhance our international presence and sales volume.

Thank you in advance for your understanding and continued support.

[racrawford65]

Thanks for the transparency, Dave. Completely understandable.
I, too, am hopeful that the trade war ends soon - paper losses in the portfolio are frustrating. That said, personally I understand what he is trying to do to balance the import/export playing field and help restore domestic industry/production...some short term pain for long term gain for the country if it goes right.

[Alex_Pants]

Thanks for the update, Dave!

[LeadEars]

Yes, thanks for the update.

Do you know yet whether this impacts existing orders or not?

Mark

[davef]

Thanks for the transparency, Dave. Completely understandable.
I, too, am hopeful that the trade war ends soon - paper losses in the portfolio are frustrating. That said, personally I understand what he is trying to do to balance the import/export playing field and help restore domestic industry/production...some short term pain for long term gain for the country if it goes right.

I agree, I will definitely take some short term pain for long term gain. As someone who has been involved with international manufacturing for 3 1/2 decades now, we (the US) have not been treated fairly by many countries with regard to importing from the US. I am all for fair trade, but I have concerns that China will not budge and that this will get worse as both Trump and Xi can be overly stubborn.

Yes, thanks for the update.

Do you know yet whether this impacts existing orders or not?

Mark

Our forthcoming price increases will only affect orders that are placed once our pricing is updated. Any existing orders, including backorders - pricing will remain as originally quoted and we will fully absorb the additional costs.

[Gyosa]

But , but ……. Trump said “China will be paying the tariffs” …..

LOL

Bk

[davef]

But , but ……. Trump said “China will be paying the tariffs” …..

LOL

Bk

Actually Trump stated there would be some pain in the beginning - and he is right. Trump knows how tariffs work, as do we... And as an employer and manufacturer, if the tariffs work as expected - the benefits for the US consumer and worker will far outweigh the negatives.

Of course, this assumes China will back off their unbelievably high tariffs on products from the US, which I give a 50% chance of happening. Either way, it will take time...

Political posts based on hearsay or designed to make a political party look bad (regardless of which side) will not be tolerated here.

[davef]

Some good news to share regarding the Tariffs. Most of our vendors whose exports to us will be hit with the new 20% additional tariff, are willing to absorb a percentage of this. This means our forthcoming price increases won't be too bad.

Our vendors will be absorbing some of this, as will we - and, unfortunately, our customers must also absorb a bit by way of a some price increases.

[racrawford65]

Some good news to share regarding the Tariffs. Most of our vendors whose exports to us will be hit with the new 20% additional tariff, are willing to absorb a percentage of this. This means our forthcoming price increases won't be too bad.

Our vendors will be absorbing some of this, as will we - and, unfortunately, our customers must also absorb a bit by way of a some price increases.

That's good news - everyone shares in the pain.