Have I written about ugly surprises before? Yes, I have, and just got another. In addition to the 5.5% import tariff on importing TrustyTrunks leakproof swim diapers from China, I was assessed an additional 25% surplus tax. Part of President Trump's trade war with China. This was not fun news.
I've heard stories of China stealing intellectual property and penalizing their citizens for buying American products, so while I don't like getting into political debates, and TrustyTrunks were certainly adversely affected by this policy, I cannot honestly rail against the motivation behind the additional tariffs. I'm just lamenting my terrible timing. I'm writing this in January, 2020. If you have been following along, you'll know that problems with the molds set me back two months. So, not only did I have to spend $4K more than expected on the mold, and miss the holiday shopping season. I also incurred an extra 25% tax I likely would not have had if my product had arrived in November 2019.
The hardest thing about it is that the items subject to the additional import tax is changing every week. The buzz is that an agreement will be reached soon, but no one really knows, which makes it very hard to plan. Such is the life of an entrepreneur, not for the faint of heart!
Effects of a trade war:
Gem of Wisdom: Expect ugly surprises when you are an entrepreneur.