I am an entrepreneur (33 YO) who is building a baby physical product. I lost my job and took my life savings ($200K) to invest in this idea. I am actively talking to suppliers in China. When it comes to tooling (molding), the US is not a country that is conducive for self funded entrepreneurs. Also, many US Manafactuers do not want to do small yield production runs (under 5,000 units). The cost for one mold in the US can run $20-$50K per mold + labor + nearly three times the cost per unit compared to China. There are also fewer options to negotiate.
China is set up infrastructure wise to support small scale production, tooling, multiple Manafactuers to negotiate against etc. The cost of living, labor, greed, etc make it unfeasible for startups producing physical products to produce here in the US. I don’t know what world Trump lives in but the US is not a country that produces as much as it consumes. Our innovation is primarily in technology which cost millions and billions to operate at scale.
If Trump wants products made here in the US, we would need to bring the cost of living down substantially which would further erode the dollar and inadvertently make inflation worse because demand would go up. It’s a perfect storm. It’s also not practically possible in our capitalistic free market system. Maybe in a planned economy, but not in our present state. It’s just a make a wish idea.
Nonetheless, the cost for me to make my product and ship to the US is around $30K total before the tariffs went into effect. Entirely self inflicted and lunatic.
The economy was already doing bad and now Trump has made himself an open target on who to blame, even if things were already looking downhill and the suffering would have just been slower — he’s now speeding it up and it’s going to be worse.
I don’t know what I’m going to do. My product is made entirely of all plastic. Our family is dependent on this. I’m just one person with an idea that I believe can work.
Trump isn’t thinking about us though. He’s thinking about the bigger players who can afford the pain, all while not realizing how all the small and medium sized startups with physical goods are going to feel the true brutality of it.
What other countries do you think I can go to who do injection molding and plastic parts that have favorable tariffs? I’m looking into Egypt and I guess maybe Brazil? I can’t imagine Brazil being as cheap and scalable as China though.
Trumps Tariffs going to kill my startup
byu/AuthenticIndependent ineconomy
Posted by AuthenticIndependent
28 Comments
India is very favorable to the US and you can take advantage of their lax environmental standards. No need for concern about working conditions and wages. Just as long as you make a big profit. Capitalism baby. Also….fuck Trump
Orange man not care. Orange man play golf
Don’t you know all the Trump Bibles, Trump Watches, Trump Ties are made in … oh wait China. Rules for thee not for me
I’m not saying this to be mean, but the amount of sympathy I’m willing to give will depend greatly on who you voted for.
As for what you can do in either case is honestly and in all likelihood… nothing. Pull back, change plans until Trump makes it more clear if this is all just bullshit or if he’s serious on tanking the world economy. If your numbers wont support 104% tariffs, then you have to shut things down or bet the farm that those tariffs won’t happen.
Don’t worry, an injection molding factory using all-domestic materials and labor will open up any day now thanks to the tariffs.
Another made up story. Keep em coming.
Orange Man say it not your time, orange man say it wasn’t meant to be built with China junk, orange man dummy.
Have you considered additive manufacturing? That can be done here in the US usually fairly cost competitively. It’s an industry I’m fairly familiar with and can help connect you with a few folks if interested.
Hopefully they’ll follow up with some measures to help boost businesses. If they do it would have to be big and it might be a free for all like the ppp loans so you might be in luck. hope it happens and that you survive until then.
Check Turkey. We have lots of injection molding and plastic parts produce factories. Current tariff %10.
Mexico has been pretty good for us. I work for a small manufacturing company in California. Mexico is close enough to ship by truck which is ideal for large parts as well. A lot of companies in Mexico/Canada that are near the border have secondary locations on the other side of the border to avoid tariffs. For example, I do business with a company based in TJ who has a secondary location in San Diego. Similarly, I work with a company based in Montreal who has a secondary location in NY.
We are having the same issue with sourcing parts from China. Parts cost 3-5 times as much locally as from China. Sometimes we use local vendors for reworks or when we need an emergency(fast) turnaround time. It’s just not feasible for us to buy everything locally. So we basically have no choice but to pay the tariffs and pass on the costs.
And we are dealing mostly with metal: stainless steel, cold roll, and aluminum. For injection molded plastic….good fucking luck. Metal is generally much easier to source in north America than plastic.
This whole thing sounds suspect… What’s your item price? How many units you looking to sell? Granted it will eat into your profit margins but if you don’t have competition for the item, just raise price.
If a tariff is forcing you to do business state side, then it is doing its job.
How many ChatGPT posts am I gonna read in a day….
If you can’t find an alternative source, can you just put this project on hold for a bit? 104% tariff can’t be permanent. It might be for Trumps entire presidency, as a worst case, but it should have an end eventually
Just wait until the US builds the infrastructure needed to support your business. Should happen in a quick 8-10 years.
Check out places in Elkhart Indiana. Lots of plastic manufacturing small job shops
It’s a global world no matter how much the Republicans wish it weren’t.
Philippines. Their tarrif is low among southeast asian peers. Only 17%
Is it worth considering moving somewhere else to establish your business?
That sucks. The risks of being a business leader are vast. You will have to adapt in order to survive. Although the world is being hard to you, do not be the victim! Change your approach. Adapt. Figure out a new path. Nobody is going to save you. I know it’s hard and it fucking sucks. I’ve been in business 17 years. Adapt or die.
Move to Canada homie.
I’m sorry man. My feed is blowing up with small businesses that are done and dusted. All we can do is hope a miracle happens and the Republican party stops him.
The sad truth is that tariff is going to change from year to year. It means if u shift to penguin island this year, its tariff will go up next year.
That’s part of the plan.
Invest in a 3D printer and operate on demand?
Going to have to build a factory here and hire fat Americans I guess.
Ah yes China. Who will take your idea make your mold sell you your orders then turn around and under cut you and sell on Amazon and temu with cheaper shipping rates and drive you out of business. Sounds like a great strategy.
The tariffs are intended to bring back manufacturing to the US. In the short term, we will all feel the pinch, but the future will be a much better business environment.