Hi all, this is Brandon from 440 Source. Many people have probably seen some headlines about the tariffs, but so far maybe haven't been impacted by them. Here's the deal: The harmonized codes which cover all categories of imported engine parts which we carry fall under the new tariffs. As of Sept 24th (currently in force) everything is subject to a 10% tariff. We have already received increases of 10% from many of our suppliers (including rods from Scat, etc). As of Jan 1st 2019, that will increase to 25%.

Do the simple math, and a 25% increase on a $2,249 stroker kit brings it up to $2,811.

Unfortunately, this is not going to "push" people into American made components as it was possibly intended to do, because, as any experienced engine builder knows, true American made cranks are $3,000+ (Bryant, etc) just for the crank, and $1,800+ for the rods (Crower, Carillo, etc) making a stroker kit with "truly" US made parts in the 5K range. So people arent' going to switch to a $5,000 US made kit because of the tariffs, they are just going to have a pay quite a bit more for the same "affordable" parts we've been able to buy for decades without paying an additional 25% to the government.

And, keep in mind, every company pays these tariffs. Scat, Eagle, K1, whatever. If it's imported, (and if it's at these lower price levels we are talking about, no matter what someone tells you, it IS imported), you are about to see HUGE increases across the board from EVERY manufacturer.

So you might want to think about doing that build sooner rather than later.

I admit I did factor this disaster into decisions made on recent purchases.

Brandon, can you explain how the tariffs impact your stuff?

There was a thread recently about this and people seem to think it works like this.
There is X amount of cost of metals in a crankshaft, therefore the tariff increase is X times 25% (starting Jan 2019). Is that how it works?
or will it be your full cost of the crankshaft times 25% ???

Thanks!!

It's on the full cost of the items. However, we have been dealing with huge increases in all of our USA made items over the last year or so also, since the tariffs on steel and aluminum came out. About 50% of the parts we offer on our web store are made in the USA.

When the metal tariffs came out, there was a mad run on all the stock left at the raw material houses, since everyone knew huge increases were coming. Many sizes of steel you couldn't even get, and others saw increases of 50% or more if you were even able to buy them. So, many of our US made parts have had huge increases as well. We've offset some of these price increases by trying to order as much quantity as possible, but even this has hardly helped.

US made parts (even though they are made in the US) are almost always made with imported steel, because steel that is actually still made in US foundries is much more expensive. Generally that is reserved for government and military projects that specify the steel used must be of US origin and also where cost is a secondary consideration. So again, the tariffs did not push anyone into "switching" to US made products, they just diverted huge additional amounts of money from individuals and private industry to the government.

Tick tock... tick tock...

This wasn’t meant to be political. The big increases coming are a real thing and people should be aware of it.

well, i'll keep my tax break.
But there is the law of supply and demand. People stop buying for a bit, the price will come down. Its interesting to note that we received a note from a supplier that they will be eating the tariff rather than passing it along.

Should be interesting to see what happens to
Reproduction/Restoration sheetmetal...

Try your best EVERYONE to NOT let this become a political discussion..

That being said I buy American whenever its possible, all of my engines are full of American made products, yep its costs more but I prefer to support the USA over....

Those tarrifs are extremely unlikely to remain in effect forever. At some point China will come to the table. They sell us way more stuff than we sell them.
I see already soy beans are way up in value( they are paying more) because South American suppliers are unable to meet Chinese demands.
This stuff was punted and should have been dealt with 30-40 years ago

Thanks for trying to warn us about upcoming price increases. Some will believe you others will blame you.

I know a manager at a large US international equipment co that says the quotes for steel are coming in at way over the 25% tariff. Pure price gouging and blaming it on the tariff.

Surprise anyone really?

Hind sight has always been better, especially in government and in some business decisions

I'm more concerned that the price of Beer might go up.

Guess you'll just have to switch from Tsing Tao beer then

Actually that's good beer.

I agree. Twisting chinese arms to get them back to the table. I understand the chinese are in a 1927 us economy right now. Their not happy right now and will be back to deal imo. I just hope that all these businesses that are raising prices because of higher tariffs also lower their prices accordingly after china comes back and a better deal is made.

Thanks for the heads up, Brandon. Racing has never been cheap. Mopars have never been cheap. But us, faithful dogs, will still keep building what we can, when we can.

Our hobby, even the cheap Chinese kits are still a luxury item, not a necessity in life.

Many can still make old junk run well.

So its hard to feel for anyone who cant make the gap on a luxury item.

Look how much we already get bent over on prices vs the bowtie boys, it is what it is.

Many places are eating the tariff. The margin on the Chinese stuff is huge. A close friend does just that kind of sourcing.
But regardless of the business decisions of the marketer - if $550 is going to derail the build you shouldn't be doing it anyway.