Today, I read about a guy in California who is shutting down his 20yr old business, one that employs over 150 people, all because of tariffs.
Here’s what is happening:
When he shipped his last container of goods from China to Long Beach, there were 10% tariffs on Chinese goods. He was willing to absorb that. He has over three dozen dealers around the USA waiting for his goods- dealers whose very existence relies on suppliers like him. For half of them he’s their main supplier.
Between when the container shipped, and its arrival in long beach, tariffs went from 10% to 145%. The result? He owes the U.S. government over $150,000 for this shipment.
He has cancelled his second container that was due to leave China just days after the 145% tariffs went into place. That would be another $150,000 he’d owe the U.S. government.
To be clear, China does not pay these tariffs. That’s an outright lie. It’s complete bullshit. And Trump knows it. The American business pays it. Not China.
So he has $100,000 worth of goods sitting in Long beach, and another $100,000 of goods sitting in a port in China, both of which he’s already paid for.
So what has he done? He’s walked away from his business, and the shipments in both China and Long Beach, and cancelled all his other orders, several of which he’d already paid the manufacturing deposits.
None of his customers will accept a 145% price increase. That would make their purchase price more than double the current retail price.
And he’s not about to throw good money after bad money absorbing that kind of loss.
So yesterday he laid off all 150 employees, one of which just had twins and needs the job, and closed his doors. He called a meeting, explained what happened, and sent everyone home. He’s abandoned both shipments, and informed his dealers.
Some of the dealers will likely also close because these are goods they desperately need, and most of their other suppliers are facing the same problem. That’s several dozen American businesses, with dozens of employees each, and decades of building their business, that will close.
In a snap. Just like that.
Because Trump doesn’t have the slightest idea how the economy functions. And if he does understand, he just doesnt give a fuck about Americans and American businesses.
The businessman? He said he’ll survive. He has some real estate and some savings. He’ll default on the million dollars in loans the company has from several banks. That’s now their problem. They can’t touch him personally. What happens to the two containers? When asked he just said “it’s no longer my problem”.
This is what half of American voters apparently wanted. They voted for this idiot and they continue to support him.
If you still support Trump, let me put this in the plainest terms. You’re a fucking moron of galactic proportions.
This is just the beginning.
