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

[Tigerlilyrosepetal]

I’m much more interested in how the current economic policies will affect the jewelry/diamond industry directly as opposed to the soybean or iPhone. I think the business of selling diamonds and jewelry, in general, is not easy. Recently, there has been a lot of hits to the industry, including the introduction of lab diamonds for sale, the Ukraine war, and Covid disruptions. I can see how diamond sellers would balk majorly at yet another hurdle in the tariffs.
Curious, if someone can expound on the future trajectory of the business and sale projections? And/or costs increase?

 

[Texas Leaguer]

I’m much more interested in how the current economic policies will affect the jewelry/diamond industry directly as opposed to the soybean or iPhone. I think the business of selling diamonds and jewelry, in general, is not easy. Recently, there has been a lot of hits to the industry, including the introduction of lab diamonds for sale, the Ukraine war, and Covid disruptions. I can see how diamond sellers would balk majorly at yet another hurdle in the tariffs.
Curious, if someone can expound on the future trajectory of the business and sale projections? And/or costs increase?

Truer words were never spoken. The diamond jewelry industry has been absolutely beset with challenges starting with the pandemic. It's just been one blow after another. This tariff war, because it is a manufactured crisis, and because we really have no idea where it will ultimately lead, is especially difficult difficult for the jewelry industry. Other industries suffering their first major setback with this tariff war may be able to weather the storm better than industries that have been repeatedly hammered over the last several years. There is only so much a business can bare.

This past week we received our first official price increase from a vendor whose factory is in India. The US has placed a 27% tariff on that country. Working together between the vendor who is absorbing as much as they can, and Whiteflash absorbing as much as we can, the price increase passed on to the consumer is now set at 9%. So starting now, customers for some of our products will be begin feeling the effects of the tariffs.

Because we stock our own diamonds as well as having a lot of designer jewelery in stock that was purchased pre-tariff, we are in a position to hold the line on prices for the most part, at least temporarily until that inventory is sold through. The hope is that the idiocy of this trade war will sink in and there will be some adults somewhere who can prevent the unforced crashing of the whole economy.

 

[Starstruck8]

This past week we received our first official price increase from a vendor whose factory is in India. The US has placed a 27% tariff on that country.

I'm confused. I had thought that India, like most other countries, was included in the 'pause', so the current so-called 'reciprocal' tariff would be only 10%. I've looked for something specific. This Reuters article, dated Apr 10, seems to confirm that the pause applies to India. Quote from the article:

On Wednesday, **Edited no politics** temporarily lowered duties on trading partners including India, just 24 hours after imposing tariffs that unleashed the most intense market volatility since the early days of the COVID-19 pandemic.

Shifting the focus back to a bilateral trade war with China, **Edited no politics** said he would raise to 125% the tariff on imports from China. The U.S. reciprocal tariff on India stands at 10%.

Maybe there were existing tariffs, so that the total is now 27%? But since the initial 'reciprocal' tariff for India was 26%, it seems likely that that is what the 27% refers to.

 

[Rockdiamond]

Sadly- many business people are more than happy to use any excuse to raise a price.
Let’s see how fast they lower prices

 

[Lookinagain]

Will he might but again this is part of the ridiculousness and chaos. For example, I wonder if they truly did not think about the iPhone situation and then when they realized it, they say “oh OK we will exempt electronics” or “ oops didn’t think about the soybean thing”. They’re really flying by the seat of their pants and it just makes us looks stupid and incompetent.

I heard today that they said the exemption on those electronics was "temporary" while they do a "national security review"? And they say this was all planned.......

 

[Lookinagain]

I'm confused. I had thought that India, like most other countries, was included in the 'pause', so the current so-called 'reciprocal' tariff would be only 10%. I've looked for something specific. This Reuters article, dated Apr 10, seems to confirm that the pause applies to India. Quote from the article:

On Wednesday, **Edited no politics** temporarily lowered duties on trading partners including India, just 24 hours after imposing tariffs that unleashed the most intense market volatility since the early days of the COVID-19 pandemic.

Shifting the focus back to a bilateral trade war with China, **Edited no politics** said he would raise to 125% the tariff on imports from China. The U.S. reciprocal tariff on India stands at 10%.

Maybe there were existing tariffs, so that the total is now 27%? But since the initial 'reciprocal' tariff for India was 26%, it seems likely that that is what the 27% refers to.

It's kind of hard to keep track these days.

 

[Texas Leaguer]

I'm confused. I had thought that India, like most other countries, was included in the 'pause', so the current so-called 'reciprocal' tariff would be only 10%. I've looked for something specific. This Reuters article, dated Apr 10, seems to confirm that the pause applies to India. Quote from the article:

On Wednesday, **Edited no politics** temporarily lowered duties on trading partners including India, just 24 hours after imposing tariffs that unleashed the most intense market volatility since the early days of the COVID-19 pandemic.

Shifting the focus back to a bilateral trade war with China, **Edited no politics** said he would raise to 125% the tariff on imports from China. The U.S. reciprocal tariff on India stands at 10%.

Maybe there were existing tariffs, so that the total is now 27%? But since the initial 'reciprocal' tariff for India was 26%, it seems likely that that is what the 27% refers to.

Thank you for mentioning this. I need to get clarification as to when exactly we recieved notification from the vendor and whether this increase has been delayed. I will report back as soon as I have clarity. Fortunately, this particular situation is isolated to only one of our vendors at this point.

 

[Daisys and Diamonds]

Looks like the sort of job Americans will be lining up to apply for.

thats what ive been thinking
and no one in NZ would be linning up to do that either, along with many other highly developed countries
also unlike when i was at high school no one wants to pick fruit here anymore either, just like a couple of you good folk were saying , we are getting lazy
we have to import tempoary workers from the Pacific to pick fruit now or it rots on the ground

dang im ment to be

 

[Daisys and Diamonds]

oh and congradulations to the UK and India ho just signed a trade deal

 

[Snowdrop13]

Chinese president now on a tour of SE Asia, no doubt looking to strengthen ties and drum up business. Maybe this will be a good thing for the world, resulting in China softening relations with some countries.

 

[missy]

Chinese president now on a tour of SE Asia, no doubt looking to strengthen ties and drum up business. Maybe this will be a good thing for the world, resulting in China softening relations with some countries.

Doubtful anything will change anytime soon between the EU and China but we shall see.

The EU and China have had a contentious relationship. Marked by investigations and retaliatory actions linked to trade. On both sides. And not just from trade tensions. None of this has/had anything to do with the USA.

In addition there ongoing concerns over the human right issues in China. None of this goes away as a result of the USA's actions and now becoming an "adversary" so to speak.

I mean this is wishful thinking on some people's parts but that doesn't make it so. Maybe over a long period of time but no one can predict.

Unless China makes some huge concessions I don't see their relationship improving anytime soon with the EU. But again no one can predict anything for sure so time will tell.

 

[Calliecake]

The current policies reflect no decisions have been made looking any further than 15 minutes ahead. There has been no thought, planning or investigating how these decisions will impact our country or the world.

We have lost so much these past weeks. Relationships that took many many decades to build are now destroyed. Respect and trust for our country is gone. We are being left behind as new alliances are being formed. What is happening in the world right now is due to the actions of the US. To think otherwise is disingenuous.

 

[Texas Leaguer]

The current policies reflect no decisions have been made looking any further than 15 minutes ahead. There has been no thought, planning or investigating how these decisions will impact our country or the world.

We have lost so much these past weeks. Relationships that took many many decades to build are now destroyed. Respect and trust for our country is gone. We are being left behind as new alliances are being formed. What is happening in the world right now is due to the actions of the US. To think otherwise is disingenuous.

Which is pretty evident from the fact they had to back down and "pause" after they saw the catastrophic reaction around the world. Except for China of course - they insanely tripled down on them after they retaliated. Now it seems, they can't even manage to get Xi on the phone to discuss. That's what happens when bluster is substituted for professional diplomacy.

 

[Ibrakeforpossums]

If you lived in farm country, you would know how many farmers, who live very nice lives, live off large government subsidies at this point.

Ah, the poor farmer... If there is a growing season that totally wipes out a crop, I can see that but if exporting the farm production for our country was opened up for free trade, the farmers wouldn't need to live off taxpayers and could afford the big, fancy equipment they own. As an aside, it would be an important statistic to show how many of the farms are now corporations with large tracts of land receiving these subsidies. Look under the covers..

I live in farm country, the farmer who rents my land for hay uses the winter for fixing his old Fords. Thank heaven he left my land in hay and didn't put it into beans. His wife has MS, I see him just getting by while she has (limited) homecare. He's a bright guy but certainly not living the life you describe. The farmers you talk about are probably out there but I've never met any in my 35 years out here.

 

[Sunrises Sunsets]

I live in farm country, the farmer who rents my land for hay uses the winter for fixing his old Fords. Thank heaven he left my land in hay and didn't put it into beans. His wife has MS, I see him just getting by while she has (limited) homecare. He's a bright guy but certainly not living the life you describe. The farmers you talk about are probably out there but I've never met any in my 35 years out here.

I can appreciate that viewpoint and his wife dealing with MS is a huge financial burden too. But this is not the corporate farmer, those who have taken over much of the farming out there today. They are reaping the benefits of subsidies.

What you witnessed from your renter is typical of the farmer moving into the past. They would overhaul their own tractors and vehicles, knew how to weld broken parts and were men and women for all seasons.

The new corporate farm has a lot of lower cost labor from immigrants, tractors that manufacturers loaded up with electronics so it's not possible to fix your own equipment unless you have a degree in computer engineering and not a hands on approach. Chemicals for crops are their friends for the most part and Excel is their mainstay for planting and planning.

But even the small farmer may be sitting on property that can be worth a million dollars and pay low real estate taxes as an incentive to remain in farming. Don't judge a book by it's cover, even the little guys can have a big real estate financial egg upon which they sit.

 

[Calliecake]

@Sunrises Sunsets , I’m just going to share my experience. I too have spent my entire life living within a few miles of family farms. @Ibrakeforpossums and I live in different states but our experiences are very much the same. None of these families are extremely wealthy people. Their families have been farmers for many generations. I live in a state known for producing soybeans and corn. These are all hard working people working their family farms. Yes, I agree there are large corporations taking over some farms but this hasn’t been the case where I live. It will be interesting to see how farmers survive now that immigrants are afraid and being forced to leave here.

Some of your posts come off as extremely condesending. I’m not sure if that is your intention. There is no need to come back swinging at people when they view something different than you do or are just sharing their experience.

Please try to understand most of us rarely change our opinions when it comes to things close to our hearts. That doesn’t make someone wrong.

 

[Lookinagain]

even the little guys can have a big real estate financial egg upon which they sit.

But the only way to realize the financial “egg” is to sell it, lease it to someone else or mortgage it. If they are not making enough to carry a mortgage and want to keep their land and farm it, they aren’t putting money in their pockets just because the land is valuable.

 

[Sunrises Sunsets]

But the only way to realize the financial “egg” is to sell it, lease it to someone else or mortgage it. If they are not making enough to carry a mortgage and want to keep their land and farm it, they aren’t putting money in their pockets just because the land is valuable.

There are few if any people starting out on a little, independent farm property. Most often family farms and property include grooming the next generation for operation Either that, or the farm is sold and the dependents take the profits to invest in their own land and buildings.

@Sunrises Sunsets , I’m just going to share my experience. I too have spent my entire life living within a few miles of family farms. @Ibrakeforpossums and I live in different states but our experiences are very much the same. None of these families are extremely wealthy people. Their families have been farmers for many generations. I live in a state known for producing soybeans and corn. These are all hard working people working their family farms. Yes, I agree there are large corporations taking over some farms but this hasn’t been the case where I live. It will be interesting to see how farmers survive now that immigrants are afraid and being forced to leave here.

Some of your posts come off as extremely condesending. I’m not sure if that is your intention. There is no need to come back swinging at people when they view something different than you do or are just sharing their experience.

Please try to understand most of us rarely change our opinions when it comes to things close to our hearts. That doesn’t make someone wrong.

I was sharing facts of farming life now. Interesting since the facts I was sharing is from the fact that I was born to farming parents. Growing up on a dairy farm means you worked and worked hard. Try crawling up a silo to open it up for the first time that season and the temperatures are in the eighties. The work and the stench from that top layer of silage was nauseating and the heat miserable. From raking to baling and unloading and stacking hay in the hay mow often racing to beat the rain. When the oats were combined, we had the same process with the straw. Every evening after school we headed to the haymow to throw down enough hay and straw for bedding and feeding animals and then proceeded to do those chores. The wheel barrel had to be filled with ground feed for one feeding and silage for the second feeding. We scrapped, swept and limed the barn floors everyday, loaded ground feed to feed the herd and in the summertime, had to wash the milk dishes which meant scrubbing milk strainers, the large milk machines and the pails from which we carried the milk into the milk house to the cooler. The list goes on.. We also helped with household chores since our mother worked in the barn along side the rest of us.

We witnessed neighborhood farm after farm sold off for fine profits to either the corporate farming organizations or for development. Couldn't blame those farmers but now I'd love to share the public information of the hundreds of thousands of dollars from subsidizing government payments being made to these corporate farms that pays for those fallow fields. The small, in comparison, farm where we kids grew up is now worth over a million dollars even though not one nickel of it was subsidized while my parents were running it. Two family members own it now and I don't know their plans for it.

 

[Lookinagain]

There are few if any people starting out on a little, independent farm property. Most often family farms and property include grooming the next generation for operation Either that, or the farm is sold and the dependents take the profits to invest in their own land and buildings.

I wasn't speaking to people starting out, but to the family farms that are continuing. And there are many in the state where I live. Actually, one down the street from me which is being run by something like the the 14th generation of farmers in their family. They COULD sell the land for many, many, millions, but they don't. They keep farming it. Do I think that they are rich from government subsidies? No. I know that they struggle and need more land to stay in business so have asked the town to lift some environmental restrictions on neighboring land and lease it to them to farm, so they can expand a bit. The townspeople support this as we don't want to see the land sold to developers. So again, yes, they are sitting on a "financial egg" but are not realizing cash from anything other than what the farm produces.

 

[Sunrises Sunsets]

I wasn't speaking to people starting out, but to the family farms that are continuing. And there are many in the state where I live. Actually, one down the street from me which is being run by something like the the 14th generation of farmers in their family. They COULD sell the land for many, many, millions, but they don't. They keep farming it. Do I think that they are rich from government subsidies? No. I know that they struggle and need more land to stay in business so have asked the town to lift some environmental restrictions on neighboring land and lease it to them to farm, so they can expand a bit. The townspeople support this as we don't want to see the land sold to developers. So again, yes, they are sitting on a "financial egg" but are not realizing cash from anything other than what the farm produces.

So they are on a small farm and don't receive farm subsidies, they are looking to expand and think selling some soybeans from a small farm will pay the rent and make the loan payments. Something is askew, I think. Equipment along with the rent and loans creates a huge expense. But then I'm a numbers gal so I hope he has a good paying job.

 

[Lookinagain]

So they are on a small farm and don't receive farm subsidies, they are looking to expand and think selling some soybeans from a small farm will pay the rent and make the loan payments. Something is askew, I think. Equipment along with the rent and loans creates a huge expense. But then I'm a numbers gal so I hope he has a good paying job.

Well, they don't farm soybeans. And they would be leasing land from the town that isn't being used at all and lease payments would not be high. The issue is whether the town wants to lift the restrictions. I don't know what loan payments you are talking about though. His family has owned the farm for many years. I have no reason to think that they still have a mortgage. His brothers help with the farm on weekends, and yes, they have good paying jobs. I only know what I learned through the town meeting. But no one around seems to think anything is "askew".

 

[Sunrises Sunsets]

Well, they don't farm soybeans. And they would be leasing land from the town that isn't being used at all and lease payments would not be high. The issue is whether the town wants to lift the restrictions. I don't know what loan payments you are talking about though. His family has owned the farm for many years. I have no reason to think that they still have a mortgage. His brothers help with the farm on weekends, and yes, they have good paying jobs. I only know what I learned through the town meeting. But no one around seems to think anything is "askew".

Those details make a big difference and it's sounds like they are savvy to success and they will manage easily. The big ace in the hole is the farm is owned and not being purchased and they also have jobs. Living off the land with their produce and animal production for their protein which is possible with acreage is another plus. I hope they succeed in their quest to rent the land from the town until the town determines it's use in the future!

I doubt very much that they are subsidized by the government, that goodie is being mostly accrued by corporate farms.

 

[Lookinagain]

Those details make a big difference and it's sounds like they are savvy to success and they will manage easily. The big ace in the hole is the farm is owned and not being purchased and they also have jobs. Living off the land with their produce and animal production for their protein which is possible with acreage is another plus. I hope they succeed in their quest to rent the land from the town until the town determines it's use in the future!

I doubt very much that they are subsidized by the government, that goodie is being mostly accrued by corporate farms.

I agree that they are not getting subsidies. They are too small. What they grow is sold in the grocery stores here in the section for "locally grown". We (the townspeople) are just happy that they should be able to keep the farm going. When the grandfather died, it wasn't farmed for a few years until the grandkids started it up again. It's the last one in my town, although there are a lot of others in nearby towns and around the state. None are big though.

 

[Sunrises Sunsets]

I agree that they are not getting subsidies. They are too small. What they grow is sold in the grocery stores here in the section for "locally grown". We (the townspeople) are just happy that they should be able to keep the farm going. When the grandfather died, it wasn't farmed for a few years until the grandkids started it up again. It's the last one in my town, although there are a lot of others in nearby towns and around the state. None are big though.

That's sound like a win for the farmer and for the town, I hope it happens for them.

 

[Texas Leaguer]

Other interesting facts here:

Ag and Food Statistics: Charting the Essentials - Farming and Farm Income | Economic Research Service

U.S. agriculture and rural life underwent a tremendous transformation in the 20th century. Early 20th century agriculture was labor intensive, and it took place on many small, diversified farms in rural areas where more than half the U.S. population lived. Agricultural production in the 21st...

www.ers.usda.gov

 

[Sunrises Sunsets]

Other interesting facts here:

Ag and Food Statistics: Charting the Essentials - Farming and Farm Income | Economic Research Service

U.S. agriculture and rural life underwent a tremendous transformation in the 20th century. Early 20th century agriculture was labor intensive, and it took place on many small, diversified farms in rural areas where more than half the U.S. population lived. Agricultural production in the 21st...

www.ers.usda.gov

Thank you for providing that information, it's exactly as I was trying to portray. The small, (under 400 acres), family farm is falling by the wayside replaced by mega corporations overproducing, cheap labor, chemically induced crops taking over.

Ever wonder why certain foods taste different now? They have their "hybrided" flavors changed for shelf longevity, long cob of corn with biggest kernel's and hormone treated cows for top production, just to start. Strawberries are so blah tasting vs the treats of years ago. Younger generations have no idea what they are missing.

There is a reason many billionaires are putting their money in land.

 

[Ibrakeforpossums]

Reading your description, I know you did that work. I grew up in northern Wisc. with small dairy families trying to make milk between the rocks. Some kids smelled like cow manure (okay, one did go on to contest for a Nobel prize). I remember when milking machines became available! And barn cleaners, my god.
My hay guy hangs on with his fingernails, another neighbor moved to organic and is prospering. But many have been lost to the Mega dairy farms, which I rather like because the cows have a much better life. I don't know what they get in subsidies, they don't seem to live lavishly. But if they lose their Mexican labor, watch out. U.S. teenagers don't do that kind of work anymore. And I agree that food doesn't taste as good as it did.
I don't make much of a point here except to say that you have a unique perspective.

 

[Sunrises Sunsets]

Reading your description, I know you did that work. I grew up in northern Wisc. with small dairy families trying to make milk between the rocks. Some kids smelled like cow manure (okay, one did go on to contest for a Nobel prize). I remember when milking machines became available! And barn cleaners, my god.
My hay guy hangs on with his fingernails, another neighbor moved to organic and is prospering. But many have been lost to the Mega dairy farms, which I rather like because the cows have a much better life. I don't know what they get in subsidies, they don't seem to live lavishly. But if they lose their Mexican labor, watch out. U.S. teenagers don't do that kind of work anymore. And I agree that food doesn't taste as good as it did.
I don't make much of a point here except to say that you have a unique perspective.

Good for your neighbor going organic! It is the only type of milk I will drink and hormones were never used on our dairy farm. You made me chuckle, all the innovations since I was a kid doing that labor and when the inspectors came around, everything had to be in tip top shape or you could be shut down. My folks background saved us there, they were pretty neat and clean people. My Dad used to shake his head at the farmers in the countryside that had huge storage sheds and left their farming equipment outside to rust, too careless to put it away. He would say they store everything they can outside and when they run out of room, put the rest inside, meaning nothing was put away.

Innovations I watched come to the farm when I no longer had to help in the barn, barn cleaners, pipeline milking, kick balers, self-unloading wagons, haymow conveyers to move the hay quickly across the huge haymow to the chutes for dropping bales into the manger and a sweet, herding cattle dog, an Australian Blue Heeler. She was a treasure.

 

[winnietucker]

@Texas Leaguer I know you guys are talking about farms now but I swore I saw something from you about WF increasing pricing due to tariffs. If prices increasing + higher demand for lab diamonds result in a decrease in demand for natural diamonds, will WF’s in house inventory shrink?

And I apologize if this was discussed and I missed it. I saw that comment and rushed off to discuss an upgrade with my husband and then lost wherever I was on whatever thread that was on. I’m pretty certain it was this one.

 

[ItsMainelyYou]

I hope people are reading about the conditions of a trade agreement with the UK hinging on forcing another sovereign nation to change their laws to allow hate speech.

None of this was never about trade.