Buyer Beware... If you're non-American, think twice before purchasing from the US

[Rockdiamond]

I instructed the vendors to put 'gift' (ummmm...gift to myself)...on the customs documentation,

Of course I hope everything goes smoothly. But as a general rule…. This is a horrible idea.
If the documentation is purposefully misleading the recipient could easily lose the shipment. Or worse.
As a rule- it is smart to dot every i and cross every t on international shipments

 

[togal]

Of course I hope everything goes smoothly. But as a general rule…. This is a horrible idea.
If the documentation is purposefully misleading the recipient could easily lose the shipment. Or worse.
As a rule- it is smart to dot every i and cross every t on international shipments

I agree... I have one coming from NYC and it's cleared customs... Am just waiting for delivery... The value was low-balled, under some threshold, whereby by I paid a nominal fee... The other is coming from L.A.... We'll see how that one plays out... My point is, it breeds people trying to circumvent the system who are otherwise honest people... This is one small example...

 

[AllAboardTheBlingTrain]

I also have another point I want to make about trade deficits. By definition, a trade deficit (in the US’s case it’s more of a goods deficit, since the US is a net exporter of services and therefore holds a services surplus, actually) is generally offset by inflows of foreign capital. This is by definition because a country’s balance of payments must net zero (current account plus capital account. A current account deficit pairs with a capital account surplus).

Disclaimer: I’m not a policymaker or economist, but I do have a passing familiarity with macroeconomic principles.

In the case of the US, why you hold a large trade deficit is because you also have a lot of foreign inflows of capital. Many economists hold the view that a large part of this foreign inflow of capital came first, so more foreigners want to put money in US assets than Americans do in foreign ones. This drives demand for dollars, which means that your currency strengthens relative to others, which means purchasing foreign goods becomes cheaper, and ergo you have a trade deficit. Some part may be driven in reverse - because you import more than you export you need to borrow from foreign economies to make your payments. But largely, the former drives the state of the US BoP and not the latter.

This is neither inherently good or bad. It depends on what that money is used for. If that foreign money is put towards opportunities that drive growth (investing in companies etc) that generate return within the US, then it is beneficial and the trade deficit - whatever its size - is sustainable because it is being funded by foreign inflows of capital driving economic expansion within the US.

So, again, trade deficits are not inherently bad. The US used to be a huge investment destination for foreign capital. It is natural to have a trade deficit while also having net inflows. If you had a trade surplus, you would have to have net outflow of capital to foreign economies. That is literally a macroeconomic principle. That is by definition.

Now, with tariffs - you will see the trade deficit shrink, most likely. But you will also see a reduction in investment in your country from foreign investors. Prices will go up. This is how an economy could head into stagflation. It is deeply concerning.

 

[Texas Leaguer]

It's interesting to me (but highly dissappointing) that most of us here, who are not economists, can see clearly where this is headed.
We did not need the new warning from Jerome Powell to understand the expected impacts. It is NOT rocket science y'all!

https://www.cnn.com/2025/04/04/economy/jerome-powell-fed-tariffs-jobs/index.html

 

[Rockdiamond]

Circling back to the diamond business...I just got a call from a lab grower.
We have a stone on memo ( consignment)
I was offered the opportunity to buy the diamond now, or the price goes up Monday ...how much? They would not say but 25% seems likely.
How is this helping?
Please- can we stop "winning"??????

 

[togal]

It's interesting to me (but highly dissappointing) that most of us here, who are not economists, can see clearly where this is headed.
We did not need the new warning from Jerome Powell to understand the expected impacts. It is NOT rocket science y'all!

https://www.cnn.com/2025/04/04/economy/jerome-powell-fed-tariffs-jobs/index.html

I don't think you're supposed to name names... I got banned for a week for that... Just sayin'...

 

[Rockdiamond]

More calls.....a large Indian natural diamond guy says 10-15% increases starting on Monday.
On paper, my company just made a small fortune.......but I'm not going to raise prices on any existing inventory.

 

[Texas Leaguer]

More calls.....a large Indian natural diamond guy says 10-15% increases starting on Monday.
On paper, my company just made a small fortune.......but I'm not going to raise prices on any existing inventory.

In the short term at least, those of us who stock inventory will have a competitive advantage. Merchants who rely heavily on virtual inventory, expecially if it is housed overseas, will have greater challenges.

 

[Texas Leaguer]

I don't think you're supposed to name names... I got banned for a week for that... Just sayin'...

He's not a politician or a political party. I really am trying to be good

 

[LightBright]

More calls.....a large Indian natural diamond guy says 10-15% increases starting on Monday.
On paper, my company just made a small fortune.......but I'm not going to raise prices on any existing inventory.

I find this to be the logical extension of tariffs, but IMO, India REALLY upped their prices on other things about two years ago, maybe when they discovered Americans would pay more. Certain Indian setting companies charge as much as legitimate antiques on eBay now. For things like authentic looking antique style lab diamond jewelry, buying preowned vintage w real diamond is about the same price now. If it’s natural, they are charging nearly same price!

I also notice there are too many “old cut style” diamonds and gems, cut in India, being marketed as real antiques. I think Indian is making big money (Western style money in a country with low labor costs) because of USA naïveté, demand and willingness to pay.

Is this lock on the market because India has low cost/high skill labor eg jewelry makers and diamond cutters and we don’t? I think yes. Same issue with Canada having diamond rough but no finishing facilities. Would it make sense to grow markets here? Just questions.

 

[Rockdiamond]

Would it make sense to grow markets here?

The US has been the largest jewelry market forever.....maybe China is overtaking us.
However a recession will not bring market growth.
We did not notice any sort of increase in Indian Diamonds or jewelry over the past few years- just the opposite.
Lab prices dropped substantially over that time and naturals followed suit.....

 

[Tartansparkles]

The BBC news website (bbc.co.uk/news) has a live commentary section, for anyone interested. The trillons of dollars mentioned and talk of global recession are maybe not reading for a Friday night. (The BBC is biased on certain domestic topics but I don't think there is much bias involved when writing about stock market fluctuations and responses).

Edit for spelling

 

[Rockdiamond]

Another email from a moment ago

Hello,

As our premium (XXX Brand )customer, we are informing you of an important update in regards to recent tariff changes that may impact your business.

As of April 5, 2025, a universal tariff on imports into the U.S. has taken effect, with additional customized tariffs beginning on April 9, 2025. Both tariffs total to 27% on diamonds and 32-34% on jewelry.

These changes will reflect our pricing on cut & polished diamonds, gemstones, jewelry, and other related products.

Due to a substantial increase in tariffs on loose natural and lab-grown diamonds and jewelry, immediate action is required on all outstanding memos.

 

[LightBright]

The US has been the largest jewelry market forever.....maybe China is overtaking us.
However a recession will not bring market growth.
We did not notice any sort of increase in Indian Diamonds or jewelry over the past few years- just the opposite.
Lab prices dropped substantially over that time and naturals followed suit.....

On diamonds and labs.

I’m talking about finished jewelry. Indian jewelry is matching its prices to preowned vintage now. India and Turkey are owning the Antique replica market now (more than US and China). Turkey charges 100% of what it costs to buy antique (they are selling replicas that they call antique for same price as antique). It used to be China and Argentina. But maybe that’s a niche.

 

[Rockdiamond]

I’m talking about finished jewelry

Ah- it really depends on the specific type of jewelry.
Things like Tennis bracelet, riviera necklaces, diamond crosses, stud earrings....are virtual commodities. Hard to raise prices due to competition..
Stylish pieces- antique repros are in a different class. Definitely higher margin items, face less competition.... if the seller can increase prices, they will.

 

[LightBright]

Ah- it really depends on the specific type of jewelry.
Things like Tennis bracelet, riviera necklaces, diamond crosses, stud earrings....are virtual commodities. Hard to raise prices due to competition..
Stylish pieces- antique repros are in a different class. Definitely higher margin items, face less competition.... if the seller can increase prices, they will.

Thanks for clarifying, I understand now.

 

[Begonia]

Nuckin' futz

 

[Texas Leaguer]

For anyone thinking the "Liberation Day" tariffs are about parity and leveling the playing field, it turns out the tariff comparisons used to justify the action are wildly misleading. The US is now imposing rates far greater than that of any other major country. And, due to the indescriminant 10% baseline tariff, we are also penalizing countries with whom we have a trade surplus.

https://www.cnbc.com/2025/04/04/trumps-tariff-rates-for-other-countries-larger-than-word-trade-data.html

 

[MissGotRocks]

For anyone thinking the "Liberation Day" tariffs are about parity and leveling the playing field, it turns out the tariff comparisons used to justify the action are wildly misleading. The US is now imposing rates far greater than that of any other major country. And, due to the indescriminant 10% baseline tariff, we are also penalizing countries with whom we have a trade surplus.

https://www.cnbc.com/2025/04/04/trumps-tariff-rates-for-other-countries-larger-than-word-trade-data.html

More slash and burn - seems to be the method today!

 

[Mreader]

For anyone thinking the "Liberation Day" tariffs are about parity and leveling the playing field, it turns out the tariff comparisons used to justify the action are wildly misleading. The US is now imposing rates far greater than that of any other major country. And, due to the indescriminant 10% baseline tariff, we are also penalizing countries with whom we have a trade surplus.

https://www.cnbc.com/2025/04/04/trumps-tariff-rates-for-other-countries-larger-than-word-trade-data.html

That’s bc the calculations for them were done w AI. It explains why no serious person could fathom how he came up w the numbers.

From an article from Futurism:

“As observers quickly noticed, chatbots like OpenAI's ChatGPT were prone to duplicating that calculation, suggesting that lethargic administration officials might have turned to the tech to devise the plan.

"What would be an easy way to calculate the tariffs that should be imposed on other countries so that the US is on even playing fields when it comes to trade deficit. Set a minimum of ten percent," crypto trader Jordan
"Cobie" Fish asked ChatGPT.
The AI tool happily obliged, coming up with a strikingly similar formulation, dividing the trade deficit by total imports to calculate the tariff rate.”

 

[Bonfire]

Why in the world would our highest official deliberately crash the stock market and brag about doing so? Suggesting we “hang tough”. I can’t even bear to look at our retirement funds and 401K.

 

[Sunrises Sunsets]

Isn't it nice the number of USA citizens who want the citizens of this country to continue to pay extra for doing business with other countries. So many cheerleaders for other countries when all that has to happen is simple, equal trading and no punishment to us because we live in the wrong country.

The rest of the world has the opinion we have an "Uncle Santa Claus" rather than an Uncle Sam. I hear cries of how this will affect the poor but I think the bottom line here is concern from the upper crust and high middle income people.

There is an interesting bit of history on June 27, 1996 in the annals of Congressional history, Page H6988. A much younger, famous, Californian woman was pleading for a change in trade with China and comparing tariffs between our countries. I saw a video of the speech and wondered why there isn't indignation now. Do some research and read her statements. Now dealing with unfair trade practices is a sin and we shouldn't be upset about those circumstances.

Paying higher prices long term for products because of trade rates is much harder on the poor and lower class than a short tariff session to work out the differences.

 

[Sunrises Sunsets]

For anyone thinking the "Liberation Day" tariffs are about parity and leveling the playing field, it turns out the tariff comparisons used to justify the action are wildly misleading. The US is NOW imposing rates far greater than that of any other major country. And, due to the indescriminant 10% baseline tariff, we are also penalizing countries with whom we have a trade surplus.

https://www.cnbc.com/2025/04/04/trumps-tariff-rates-for-other-countries-larger-than-word-trade-data.html

 

[Sunrises Sunsets]

For anyone thinking the "Liberation Day" tariffs are about parity and leveling the playing field, it turns out the tariff comparisons used to justify the action are wildly misleading. The US is NOW imposing rates far greater than that of any other major country. And, due to the indescriminant 10% baseline tariff, we are also penalizing countries with whom we have a trade surplus.

https://www.cnbc.com/2025/04/04/trumps-tariff-rates-for-other-countries-larger-than-word-trade-data.html

Noticed I emphasized NOW. Of course they are higher right now, that is the purpose of the action, to create pressure to negotiate new terms with other countries.

 

[Texas Leaguer]

There's a strong theme of victimhood at the core of so much of what we are seeing.
For my whole life I have believed America was great. Not perfect - lots of social inequities - but a country always seeking to right those wrongs and live up to the ideals that we espouse and that we try to nurture in our global sphere of influence.

Suddenly Americans are being sold on the idea that we've been ripped off, taken advantage of, disrespected, played for fools. This sets the stage for and justifies retribution against all those countries that have 'stolen' from us. Stolen wealth, stolen jobs, stolen ethnic identity, stolen elections. America is not the envy of the world - we're chumps.

It's a message that begets anger, prevents collaboration, and ultimately makes consensus impossible. And it is now playing out across the globe. The shining light on the hill approach was much better than American carnage, and I miss it.

 

[Sunrises Sunsets]

There's a strong theme of victimhood at the core of so much of what we are seeing.
For my whole life I have believed America was great. Not perfect - lots of social inequities - but a country always seeking to right those wrongs and live up to the ideals that we espouse and that we try to nurture in our global sphere of influence.

Suddenly Americans are being sold on the idea that we've been ripped off, taken advantage of, disrespected, played for fools. This sets the stage for and justifies retribution against all those countries that have 'stolen' from us. Stolen wealth, stolen jobs, stolen ethnic identity, stolen elections. America is not the envy of the world - we're chumps.

It's a message that begets anger, prevents collaboration, and ultimately makes consensus impossible. And it is now playing out across the globe. The shining light on the hill approach was much better than American carnage, and I miss it.

Such fine exaggerations do nothing to help the issue, unfair trade practices. The respect for this nation was lost over the past 4 years. All the hyperbole as to why we should be hated in the world in just that and most of it comes from "some" Americans, bots and foreign interference. Why wouldn't the world start to believe with news channels spewing slanted views daily and TV programs that fan hate? The issue is trade agreements. Why can't one stick to that subject and stop trying to inject all the ridiculous hate against America they are trying to foster?

As I stated in an earlier post, when the President of France agrees that the diagnosis of the American trade situation is correct but then elaborates how they will combat any change to make it agreeable to both countries, who is the problem? We can only hope discussions will occur between these two countries.

Victimhood? Yes, I see a lot of victimhood on here as to how jewelry purchases may have to be postponed temporarily but those purchases are unnecessary and will be possible when the tariffs end. A small part of me thinks, okay, go back to the morass we've been in and let it sink the way certain people desire. People will begin very shortly to see a far worse problem than anything they imagined and the temporary tariffs will look like nothing burger in comparison.

 

[Bonfire]

Well said @Texas Leaguer. This is un-American and we’ll see if we can retain our democracy against this multi pronged assault. You use the word carnage and it is apropos. Inflict chaos and jet off to golf, again.

 

[Sunrises Sunsets]

Well said @Texas Leaguer. This is un-American and we’ll see if we can retain our democracy against this multi pronged assault. You use the word carnage and it is apropos. Inflict chaos and jet off to golf, again.

Perhaps boning up on history will help show that tariffs are not un-American and carnage is our future if the balance isn't returned to our trade situation.

Can you believe it? Someone taking a day or two off work... oh wait! We should be used to that since every other person in that position took a break here and there. Of course, I can think of one who took more time off than anyone, probably.

 

[Sunrises Sunsets]

What if we, as a nation, stood up and quietly said, yes.. the trade unbalance is unfair and we hope other nations will quickly help straighten out this situation. Instead we impale our own country as the problem.

But, we as a nation, are now solely interested in instant gratification. Any sacrifice is way too much for us and let us keep feeding on our dollars until they are worthless.

 

[LightBright]

There's a strong theme of victimhood at the core of so much of what we are seeing.
For my whole life I have believed America was great. Not perfect - lots of social inequities - but a country always seeking to right those wrongs and live up to the ideals that we espouse and that we try to nurture in our global sphere of influence.

Suddenly Americans are being sold on the idea that we've been ripped off, taken advantage of, disrespected, played for fools. This sets the stage for and justifies retribution against all those countries that have 'stolen' from us. Stolen wealth, stolen jobs, stolen ethnic identity, stolen elections. America is not the envy of the world - we're chumps.

It's a message that begets anger, prevents collaboration, and ultimately makes consensus impossible. And it is now playing out across the globe. The shining light on the hill approach was much better than American carnage, and I miss it.

This is a deep issue. Personally, I don’t think voters in general believe Americans are being ripped off. I don’t believe we should be hostile towards other countries, nor do I think Americans are.

But for example some US vendors and businesses think they are being ripped off. Search for how Amazon is treating US based vendors (only 35% of sellers on that platform) for example. Search for the plight of the American farmer, losing land at fire sale prices, being facilitated by our own Farm Bureau, to corporations or other countries. (This is happening globally).

Yes, I think the support for radical change comes from many Americans feeling existentially and real-life victimized by a (former, previous) political practice that was ideological and impossible to challenge and change.

These voters felt pushed around and threatened by many decisions made at higher levels, outside of public opinion or common sense. Many of the unilateral decisions affected health, environment, children, freedom of speech, freedom of action, how neighbors related to neighbors and how much power invisible power brokers had over our money, our employment, our lives and communities.

Some voters choose to continue to trust the powers to make decisions in an ivory tower and impose them on all aspects of our country in a “whole of society” way, some voters have had enough. Our differences are stark.

When I say ideological decisions outside of common sense were made unilaterally, one example was the decision to destroy Europe’s economies by switching them to American supplied natural gas. Using ideology and covert action to affect energy policy and decisions. Not a peep from European power structure. European media seems to have kept citizens ignorant to the fact that their pipeline didn’t blow up on its own. This is our impact, not a shining example on the hill. To me, this looks like real damage not blustery rhetoric over unfairness of tariff imbalances (which are explicitly negotiable, see: Vietnam).

Keep in mind those same American voters who in historic defiance voted for change, are overwhelmingly the middle class of America. (Look up economic status of voters one party vs. the other). What made us want reforms is a good and deep question.