Maybe cranks/rods SHOULD cost $3k/$1800?

These tarrifs are for long term economic succes with the hopes that the gap between outsourced and American made products will shrink. Hopefully this causes more American demand because costs will be closer, prompting new domestic suppliers and more competition for business.

My question is, if a importer buys a widget for $100 and pay 10% which is $110 and they sell in the USA for $400 how come I got to pay 10% of the retail which would total $440. If importer would only charge $410 that would only be a 2.5% increase.

We will all pay no matter what side of the North American boarders you live on. We will pay this new tax and both the USA and Canadian Governments are the ones that are making a lot of money. I saw just how much the Canadian Government is making and I did make me wonder just were all this money is going. Sure not going to the every day worker in both countries so we hobbyist can afford to continue in this hobby without emptying ones bank account. This looks like just another nail in our hobby that is running out of new people to come in and continue it along. Nice to have a supplier come on here and voice his knowledge of the industry and explain to the hobby what is going on with the prices in the future.

Glad my heads showed up the other day :-)

Funny this has came up ,just talking to my engine builder about a new build and he said good luck on finding a crank didn't go into details. Don't no if he means just Chryslers or cranks in general .

Silly man, stop looking behind the curtain.

you're kidding right ? when has this happened in you're lifetime ?

This very thing is something I am considering too, one of the first things that occurred to me in terms of an immediate personal effect. I do think there might be a short term spike in people purchasing parts a little sooner to beat the tariffs followed by a drop off similar to a cliff after the beginning in the new year(or whenever it kicks in).

I think the people who are saying the tariff should not be marked up by the supplier are missing a fundamental point. Let us use the example of the mythical part mentioned that costs the supplier 1500 to have it landed in their warehouse. Some of that 1500 is amortizing the engineering costs to design the part. Some of that 1500 is the manufacturing labour. Some of that 1500 is the raw materials. Some of that 1500 is the packaging and handling. Some of that is the ocean and land shipping to get it to the warehouse where hopefully somebody will buy that part at your let's say 25% markup. We will use that number as it is the same as the tariff. The person selling the part does not see their 1500 + 375 = 1875 until the part is sold. That means that 1500 that is tied up in that part can not be used to develop new parts until it is freed up by someone buying that part. Now, the 25% tariff is added on to that part when it arrives into the US. It is not a sales tax added on to the part when it is sold to the consumer. That means the cost to the supplier is now 1875 for the exact same part. All other costs are the same. No value has been added to it, that 375 is just a tax. The supplier has to front that additional 375 until the part is sold. That money is tied up, it can not be used, for example, to hire engineers (most likely in the US) to design the next generation of whatever until that part is sold. It is now a cost that is no different than any of the other costs to manufacture the part. The markup has to be added to the full cost of 1875, which means that part now will cost 2343.75, not the 2250 that it would cost if the tariff was applying in a similar fashion to a sales tax, where the consumer pays it at the time of final sale, not fronted by the supplier. This final cost is still considerably more than the 1875 it will cost without the tariff.

I would love to buy US for all the parts. If someone can point me to a manufacturer in the US that is stamping similar cost, quality and range of sheet metal to AMD for a 70 Road Runner I will gladly purchase from them.

That kind of 400% markup either way is the kind of markup drug cartels would love to have.
For a more serious answer, using more realistic markups, see my reply above.

great sales pitch...yes, folks stock up on those fine Eagle cranks before the coming price jump. Don't forget to buy a spare too.

Buy them now because Chinese 'quality' may not get any better.



(not mine)

Looks like the term "cheap Mopar guys" is now a thing of the past. If you want to play outside the sandbox you will need to pay up!!!!

i think I’ll just buy a hellcat engine next time.

It is .. the cost to make the cans is increasing due to tariffs on aluminum

Thank you Brandon.
I appreciate the ethics of letting us know whats coming.

Fwiw: There really isn't anything called "manufacturer eating cost increases ".
why?

Economics rule is the the consumer pays for everything.
If i haul water from a stream, i payed for the water with my labor- grin.
when manufactures "eat the increase" its because their former margins allowed for it - so we already paid for it and, at some point is costs stay higher, we will pay the increase>

As a shop owner, i have to make a profit, i can decide to take a little less profit but, i still have to make money or i wont exist for long.

as to the sheet metals /panels pricing, ours are already up some and we are being told to expect price increases the first of the year.
we are going to stock up what we can so that we don't have to adjust current build prices but bids/estimates after we use up the metals we buy now, will have to reflect our increased costs.

My brother buys massive amounts of steel all over the world and confirms Brandon's report btw.

China will come to the table eventually, deals will be made eventually and we will all live with those deals as they are then.
Like Brandon/440 source /Folks on here- we buy American as much as we can,some things, its just not possible , others its not practical.

Thanks Brandon, we will look at our build schedules, talk to customers and see what shakes out.

I do believe things will get better sooner , rather than later on this issue.

I tried to bring this very subject up several months ago, in the interest of alerting the fence-sitters, like some of my friends, and asked to not get political. It was immediatley removed. Now, a big vendor does the same thing, and its alright? What made the difference? My post was to get people to thinking about just this scenario and act before the tarrifs go in place and the supply dries up, nothing more, nothing less. Some Moderators on here seem to be overzealous!
A big Thanks to Brandon for getting the message out, and good luck to all the buyers!

Yes, i understand all of this, but lets not forget about the corporate tax cuts. From 35% down to 21%. Thats a big tax cut for business. So much so that Walmart of all places gave $1000 bonuses to their employees. The tarrifs are just a small bump in the road.
I remember when fuel prices were sky high and prices were raised on goods because of the trucking costs including tires. Now that the fuel prices are down do you see the price of tires or any other goods with lower prices? I dont. Just look up 12.50x35 tires for you truck. Just my 2 cents

Dave Walmart got a 22 billion tax cut and returned 56 million to employees wages.

So for every dollar they got they returned 1/4 of a cent. Not even a penny on the dollar.

Didnt know that, but goes along with my point of businesses raising prices because of tariffs. I think its a small increase some want to take big advantage of. Just go to the grocery store and see what that cost. Those prices never came back down.
There was a bunch of other businesses that gave $1000 bonuses to employees because the tax cuts were so great. Lowes, consumers energy just to name a couple.

Same pennies on a dollar smoke screen. They keep the money.