https://archive.is/MQDgH

US companies are demanding price cuts from Chinese suppliers to mitigate tariffs— but there’s nothing left to squeeze

• US businesses are pressuring Chinese suppliers to cut prices to mitigate Trump’s tariffs on China.

• Supply chain experts say Chinese manufacturers have smaller margins to give.

• After heated back-and-forth retaliations, the US tariffs on China stand at 145% as of April 10.

To avoid steep price hikes for consumers, US businesses are pressuring their Chinese suppliers to lower prices after President Donald Trump imposed massive tariffs.

Fucking swine, if I was a Chinese capitalist leech that had a hand in manufacturing and supplying the U.S I’d try to organize an alliance across the manufacturing sector to raise the prices of goods in response to their outrageous demands.

Those attempts will likely fail, production management companies and supply chain experts told Business Insider.

I fucking hope they do

“If you already reduced your pricing in the past for your US clients, you probably don’t have much space to do it again and again,” said Jonathan Chitayat, CEO of Genimex Group, a contract manufacturing company. “You can do it for an order or two, but the next time your customer asks you for a price, you are going to work on the reality that you have to be a profitable business and you can’t continue losing money.”

Fucking sucks when the shoe’s on the other foot, don’t it, porky?

Genimex Group helps US companies engineer and manage manufacturing for electronics and kitchenware, which often means working with overseas suppliers in Asia. Chitayat said that a large part of the job now is negotiating with factories to mitigate the tariffs. Still, because that possibility is shrinking, many US clients have already raised their retail prices.

Middleman corporate swine crying about their shrinking profits

“Everyone’s already under pressure and has been asked that question before,” said Chitayat. “There are no subsidies that we’re aware of that the government in China is giving to manufacturers, so they mostly don’t or have very, very little margins to give.”

Even without being propped up by the People’s wealth, like how the American capitalists are, Chinese industry is still roflstomping the U.S without actually putting the economic squeeze on us.

Trump has a history of imposing tariffs on China since his first presidency in 2016. The manufacturing hub also became his main target during his “Liberation Day” announcements, during which he said China had a 67% tariff on the US, among several other figures representing other countries’ duties on the US that could not be found in past trade documents.

The meme is JDPON Don right?

Despite announcing on Wednesday that his tariff policy would be temporarily suspended for 90 days on more than 75 trading partners who did not respond with retaliatory measures, Trump said on Thursday that a 10% blanket tariff on all countries still stands and that tariffs on China total 145%.

Lol at how there’s still a 10% fuck you tax on all the importer capitalists here

Trump wrote on Truth Social that these tariffs are “effective immediately” and “based on the lack of respect that China has shown to the World’s Markets.”

Everything America says is projection

China retaliated against the initial US tariffs with an 84% counter tariff and raised the amount to 125% on April 11, calling the US a “joke.” The Ministry of Finance in China added that, given the price tag, there is no longer any “market acceptance for US goods exported to China.”

Good.

Shih said that if the Chinese Yuan depreciates, that could help absorb some of the tariff shock. However, that would be insufficient to keep costs down for many products like electrical equipment, which already faced Section 301 tariffs before the most recent “reciprocal” tariffs enacted under the International Emergency Economic Powers Act.

Just gonna keep snowballing and snowballing, but the snow is actually dookie

He said many of these products, such as liquid crystal flat panel displays for televisions, were never made in the US in the first place.

You’d be hard pressed to find something that is made in the u.s

“You can distribute parts of the tariff among all the parties in the supply chain, but these numbers are so large now that they’re going to have to be passed on to consumers,” Shih added.

When hasn’t it been “passed on to consumers”

Some supply chain experts have also told BI that China’s internal economic issues have affected its ability to mitigate external shocks, which could harm both countries.

Hey look! More projection!

“Chinese manufacturing firms have faced declining margins in part due to falling domestic demand,” Sara Hsu, clinical associate professor of supply chain management at the University of Tennessee, told BI, “so there is already weakness in this sector from last year.”

America’s plan to destroy China is to starve itself to destroy China’s manufacturing capacity due to the classic capitalist crisis of overproduction. Fucking lol.

Andrew Collier, Senior Fellow at the Mossavar-Rahmani Center for Business and Government of the Harvard Kennedy School, told BI that due to the collapse of China’s property market and the subsequent loss of property revenue for local governments, there’s little room for Xi Jinping, the Chinese president, to prop up manufacturers.

Not that they necessarily needed to, like how they let the property market collapse instead of propping up capitalist fuck ups with the People’s wealth. Gee if only we could have a People’s government that could put these swine to pasture too.

“Xi faces some domestic pressure from unemployed workers, disgruntled property owners, and small businesses selling goods to the US,” said Collier. “The political pressure on Trump in a democracy is likely to be much higher once people realize how bad the economy and markets are.”

Big saying Xi has problems that can be compared to how fucked we are in comparison when the ball really gets rolling.