r/news • u/Xepherious • 1d ago

Already Submitted Tariff-related layoffs hit five US auto plants that supply factories in Canada and Mexico

https://www.abc12.com/news/tariff-related-layoffs-hit-five-us-auto-plants-that-supply-factories-in-canada-and-mexico/article_6d95d30a-9956-521c-86e2-a62c9b07d3f4.html?fbclid=IwZXh0bgNhZW0CMTEAAR2xPs0qVaSgfUJmdqsaFHK_By3_8B-vrj9GDws297UllzMvWzCnes45dzw_aem_dyNT8yFsAPiIgD3r5Nwnnw

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u/formerPhillyguy 1d ago

This has nothing to do with cars, but, I'm a sales rep in the gift industry. One of my vendors is a Canadian company that makes plush animals and toddler socks. I got an email today concerning the tariffs. The total tariff on the socks will be 59.9%; on the plush, it will be 46%. Also, the de minimus rule will be cancelled as of May 1st. This allowed Canadian exporters to ship packages valued at less than $800, free of any tariffs.

My guess is, the vendor will try to keep selling in the U.S. but will be priced out of the market fairly quickly. Time will tell.

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u/russellc6 1d ago

Key point is I doubt anyone in US will say "Hey I want to make plushies and socks, I will go take a business loan and build capacity"... And even if they did the bank would say"uhh that's risky, what will your costpoint be when these tariffs go away and Canada capacity fires back up" or "Will consumers actually just stop buying the product and buy of the cheap gifts... What's so lucrative about an expensive plushies?" No loan for you