The markets are see-sawing due to the unknown long-term impact of the trade war with China, which at this moment will saddle American businesses with tariffs on goods purchased.
While diplomatic negotiations are not complete and anything can happen, the question is, who ultimately ends up paying these tariffs?
Right now, certainly not China.
We are hearing from small business clients, many are family-run companies and there are thousands of others like them that have to absorb costs as they have already sold goods.
Importers especially are impacted as they sell products ahead of purchasing them overseas. Many set their pricing before the end of the last calendar year and are unable to adjust past pricing due to fluctuations of normally fixed tariffs. They cannot go back to their clients and raise costs.
If a 25% tariff is implemented on products purchased from China small business must absorb those costs which for many are far more than their profit margins.
So while politics and diplomatic relations are handled in and out of our media, while partisans argue and bicker about their concerns, the real focus should be on how this will impact the hundreds of thousands of small businesses across the country who will find themselves financially constrained during this chapter.
Valcor is seeking Licensees in specific regions of the country whereby partnerships on cases can be handled together.
Contact Valcor directly for more details and determine if your region is available.