# Tariffs and Backorders -machines



## visenfile (Dec 19, 2020)

Tariffs.   Ads from Asian lathe vendors may refer to pricing "after tariffs," and may suggest that equipment not subject to these tariffs may exist.  I have not called them to dig deeper.  So in a new administration , if some tariff reduction is implemented, can we expect some reduction in pricing , or will it be like other pricing phenomena...always upward?

Backorders.   Several major machinery vendors seem to have a running ad on e,g. lower end lathes that turns out to be "on backorder."  A person cannot see this "backorder" status until visiting the website.   This  appears (almost to be) a bait and switch tactic which is tiresome.  Some sites allow an "add to cart" option to the backordered item, but others simply show the item with no more information.  Do the "add to cart" vendors eventually reach some minimum batch quantity or do individual orders flow in series and remain a Chinese secret?  

Your comments may help potential near term buyers.


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## pontiac428 (Dec 19, 2020)

It might not be helpful to say this, especially since it's my opinion, but past behavior is the best indicator of future behavior, and that tells me prices will not roll back when tariffs are halted.  Everybody feels like they need to claw back losses from the last year, so the income previously allocated for tariffs will likely go to line the pockets of business owners who feel like they've lost out.  Not a single price tag is going to be slashed.  That's the economy of capital.

Backorders are a little different, as I see it.  The pandemic has affected production and distribution all the way around the globe.  Inventory will come back, but for now it is just the way it is, and it's affecting every sector.  You're as likely to wait for a PM mill as you are for a new Playstation or even an arrangement from your local florist.  At least things are trickling through and we have hope for a return to normal.


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## MrWhoopee (Dec 19, 2020)

I suspect backorders just reflect the fact that suppliers in this country are not ordering for inventory at the increased prices. It's a game of hot potato, and they don't want to be holding the potato when the tariffs are removed.


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## 7milesup (Dec 19, 2020)

My understanding is that the tariffs do not apply to machines made in Taiwan.  Seems that I read that somewhere when this whole tariff crap started.  So, if that is the case, you can buy a Taiwan lathe (better quality) for the same or less money than a Chinese lathe.  
BTW, where did all that tariff money go?


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## MrWhoopee (Dec 19, 2020)

7milesup said:


> BTW, where did all that tariff money go?



The U.S Treasury. Tariffs are actually one of the primary sources of income envisioned by the founding fathers.


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## 7milesup (Dec 19, 2020)

MrWhoopee said:


> The U.S Treasury. Tariffs are actually one of the primary sources of income envisioned by the founding fathers.


Really.  I did not know that (the founding father part esp.)


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## Superburban (Dec 19, 2020)

Income taxes started after the civil war, then stopped after it was paid off, then started again and made permanent with the 16th amendment around WW1.


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