Good afternoon,
The issue of Chinese tariffs was brought home in a New York Times story (subscription) this week.
Tom Vari, who owns Brandywine Lighting Gallery in north Wilmington talked to the newspaper-website about the impact the tariffs are having on his business.
The lighting designer says his small business is feeling the pain from the Trump Administration decision that has been billed as a way to bring back manufacturing jobs.
To date, the tariffs have not led to sizable increases in lighting equipment prices. But Vari fears that the worst is yet to come based on info from lighting wholesalers on future increases.
Instead, he sees small businesses paying a hefty price. In Vari’s world, big competitors on the store or online level, can better absorb the tariff increases.
Vari told the Times he is encouraged by prospects that the trade dispute may be resolved but is skeptical that any deal will lead to a manufacturing renaissance.
After all, most of the lighting manufacturing business migrated to China decades ago. Rising wages and a four percent unemployment in the U.S. have further reduced chances of a manufacturing renaissance.
Even if wage costs were more competitive, the lack of a supply chain would doom any effort, even if technology narrowed the gap.
One mistake Vari won’t make again is posting his thoughts on social media. Trump supporters jumped on his comments.
Instead, Vari plans to talk one to one with customers, he told the Times.
For those of us who frequent home improvement centers in a search for the best deal, a visit to Brandywine and other independent businesses is overdue, regardless of your political leanings.
If this newsletter was passed along and you like what you have read, sign up here to get your own copy. If you have any comments pro or con, or news tips, hit return, attach the item, or type away. – Doug Rainey, publisher.
