Tariffs & the printer industry

[SalesServiceGuy]

Empty shelves, trucking layoffs lead to a summer recession in Apollo’s shocking trade fight timeline

The economic impact of the tariffs imposed by the Trump administration will soon become apparent to everyday Americans and lead to a recession this summer, according to Apollo Global Management.

Torsten Slok, chief economist at Apollo, laid out a timeline in a presentation for clients that showed when the impact of tariffs announced by President Donald Trump could hit the U.S. economy. Based on the transport time required for goods from China, U.S. consumers could start to notice trade-related shortages in their local stores next month, according to the presentation.

“The consequence will be empty shelves in US stores in a few weeks and Covid-like shortages for consumers and for firms using Chinese products as intermediate goods,” Slok wrote in a note to clients Friday. Tariff to recession timeline:

• April 2: Tariffs announced, containership departures from China to U.S. slowing
• Early-to-mid May: Containerships to U.S. ports come to a stop
• Mid-to-late May: Trucking demand comes to a halt, leading to empty shelves and lower sales for companies
• Late May to early June: Layoffs in trucking and retail industries
• Summer 2025: recession

Source: Apollo Global Management

To support the idea that the U.S. economy is on the verge of recession, the presentation also included data that shows new orders for business, earnings outlooks and capital spending plans have all fallen sharply in recent weeks.

The Trump administration has paused some of the tariffs announced on April 2, but has hiked duties even higher on China. Treasury Secretary Scott Bessent acknowledged Monday on CNBC’s “Squawk Box” that the current tariff standoff with Beijing is “unsustainable.” Levies on goods from China are now subject to a 145% rate.

China is not the only source of consumer goods, but it does have a large role in the U.S. economy. The U.S. imported $438.9 billion of goods from China in 2024, according to the Office of the United States Trade Representative, putting it right behind Mexico and above Canada on the list of trading partners by that metric.

While many on Wall Street are now saying that a recession for the U.S. is likely in 2025, Slok’s predictions are toward the more pessimistic side. Bessent has said the administration expects a “detox period” for the economy due to the trade negotiations but not necessarily a recession.

There is also some evidence of a “pull-forward” in orders from before the tariffs were announced, which could keep goods on the shelves for longer than the Apollo timelines sets out.

“Don’t expect empty shelves yet — [year to date] stock is still up, and demand is slowing,” Bernstein analyst Aneesha Sherman said in a note to clients Monday.

[SalesServiceGuy]

Temu adds ‘import charges’ of about 145% after Trump tariffs, more than doubling price of many items

• Chinese e-tailer Temu has started adding “import charges” to customer orders in response to President Donald Trump’s tariffs on China.
• Some of the fees range between 130% and 150%, more than doubling the cost of those items.
• Earlier this month, Temu warned that it would be raising its prices “due to recent changes in global trade rules and tariffs.”

Chinese e-tailer Temu has started adding “import charges” of about 145% in response to President Donald Trump’s tariffs.

The fees, which began cropping up over the weekend after price hikes went into effect on Friday, cost more than the individual products consumers are buying and can more than double the price of a typical order.

For example, a summer dress sold on Temu for $18.47 will cost $44.68 after $26.21 in import charges are added to the bill, a 142% surcharge, a CNBC analysis shows. A child’s bathing suit priced at $12.44 will cost shoppers $31.12 when the $18.68 import charge is taken into account, a staggering 150% fee. A handheld vacuum cleaner listed at $16.93 now costs $40.11 when factoring in an import charge of $21.68, which is a roughly 137% markup.

“Items imported into the U.S. may be subject to import charges. These charges cover all customs-related processes and costs, including import fees paid to customs authorities on your behalf,” Temu explains on its website. “The amount listed may not represent the actual amount paid to customs authorities.”

Representatives from Temu didn’t immediately respond to a request for comment.

Rival discount retailer Shein has also hiked prices on its site, but it doesn’t appear to be implementing import charges. The company added a banner at checkout that states, “Tariffs are included in the price you pay. You’ll never have to pay extra at delivery.”

The moves come after Temu and Shein warned earlier this month that they would raise their prices after Trump slapped a 145% tariff on many imports from China and vowed to end the de minimis exemption on May 2. The widely criticized loophole helped accelerate Temu and Shein’s growth in the U.S. because it allowed most packages to enter the country duty free, as long as the imports were valued under $800.

“Due to recent changes in global trade rules and tariffs, our operating expenses have gone up,” Temu said on its site earlier this month. “To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025.”

The import fees erode the value proposition that made Temu popular with consumers in the first place. Temu, which is owned by Chinese e-commerce giant PDD Holdings, has skyrocketed in popularity in the U.S. since its launch in 2022 by blanketing the internet with ads proclaiming users can “Shop like a billionaire.” Though shipping times could be long, consumers flocked to the site because the rock-bottom prices on clothing, electronics and home goods made the extra wait worth it.

Temu allowed cash-strapped consumers struggling to afford essentials like groceries and housing to splurge on nice-to-have items like new clothes or home decor without the steep price tag. Now, the prices of many of its products will be more aligned with U.S. competitors like Amazon, Walmart and Target, but could still take more than a week to arrive.

Temu has sharply slashed its online ad spending in the U.S. since Trump announced sweeping tariffs. Temu’s ranking in Apple’s app store has since plummeted to No. 73, after consistently ranking in the top 10, according to Sensor Tower data. Shein is currently at 54, down from 15 last month. ‘It was nice while it lasted’

Temu shoppers have flooded a Reddit forum with posts decrying the tariff-induced import charges in the days since the company raised prices. In one post titled “R.I.P. Temu, it was nice while it lasted,” a user wrote that the price of items “went flying up” on Friday.

“From shopping like a billionaire to shopping like a peasant in one day,” a user wrote in a separate Reddit post on Saturday.

Macinzi Morris, a Temu customer who lives in southeastern Missouri, said she ordered a set of succulent pots for $12.25 before the company began raising prices. By Friday, the pots went up to $30, she said.

Morris buys yoga supplies, clothing and a variety of other products from the site “a couple times a month,” but she expects to shop elsewhere now that Temu items are more expensive.

“There’s no point in paying a 140% upcharge when I can get the same thing on Amazon for the same price and usually get it a little faster,” Morris said.

Some news outlets and consumers have tracked modest price increases on individual items sold on Temu — before the import charges. It appears the new fees are only being tacked on to products that aren’t sold from local warehouses in the U.S. Over the last year, Temu has worked to build out U.S.-based distribution centers to shield itself from trade tensions and has reportedly pushed some sellers to store inventory in the U.S.

Recently, Temu has been promoting products that ship to U.S. consumers locally over those that ship directly from China. That trend has only ramped up as the company hikes prices and adds extra fees.

For example, a scan of Temu’s “lightning deals” page on Monday showed more than 75% of the products offered had a “local” tag on them. When consumers click on the items, a bright green banner with the words “no import charges” is highlighted at the top.

[Mako]

😀😀😀🤣🤣🤣😅😅😅🤣🤣🤣😂😂😂😀😀😀

[SalesServiceGuy]

The cost of the thermal paper used in many label printers and Point of Sale printers has been rising due to the scarcity of one of its main compounds called leuco dye. Heat from the printhead "activates" the dye and generates the black text and characters.

Leuco Dye is manufactured exclusively in China and specifically by the company Connect Chemicals , responsible for 80% of the world production.

With the USA/China trade war now in full swing, leuco dye shipments to the USA are likely going to get very scarce and very expensive.

The new Toshiba BX410T label printer is capable of printing on both low cost plain paper labels (aka thermal transfer) and direct thermal using leuco dye coated paper.

The Toshiba BX410T industrial label printer brings industry 1st copier features to the label printer industry with compelling operating costs and on-site techncial support.

[SalesServiceGuy]

Port of Los Angeles says shipping volume will plummet 35% next week as China tariffs start to bite

• “It’s a precipitous drop in volume with a number of major American retailers stopping all shipments from China based on the tariffs,” said Gene Seroka, executive director of the Port of Los Angeles.
• Shipments from China make up about 45% of the business for the port, though some transport companies will be looking to pick up goods at other points in south east Asia to try to fill up their ships, Seroka said.
• Data on shipments out of China had already started to signal slowing trade volume to the U.S., alarming some economists.

Shipments from China to the west coast of the U.S. will plummet next week as the impact of President Donald Trump’s tariffs leads companies to cut their import orders.

Gene Seroka, the executive director of the Port of Los Angeles, said Tuesday on CNBC’s “Squawk Box” that he expects incoming cargo volume to slide by more than a third next week compared to the same period in 2024.

“According to our own port optimizer, which measures the loadings in Asia, we’ll be down just a little bit over 35% next week compared to last year. And it’s a precipitous drop in volume with a number of major American retailers stopping all shipments from China based on the tariffs,” Seroka said.

Shipments from China make up about 45% of the business for Port of LA, though some transport companies will be looking to pick up goods at other points in south east Asia to try to fill up their ships, Seroka said.

“Realistically speaking, until some accord or framework can be reached with China, the volume coming out of there — save a couple of different commodities — will be very light at best,” Seroka said.

Along with the lower volume of goods, Seroka said he expects roughly a quarter of the usual number of arriving ships to the port to be canceled in May.

Trump announced a sharp increase in tariffs on Chinese goods on April 2, which led to escalation on both sides, eventually resulting in both the U.S. and China imposing levies of more than 100% on many goods from each other. U.S. Treasury Secretary Scott Bessent has described the situation as “unsustainable” but there has been no sign of substantial negotiations between the two countries.

Data on shipments out of China had already started to signal slowing trade volume to the U.S., alarming some economists. Apollo Global Management chief economist Torsten Slok recently laid out a timeline where lower imports from China leads to layoffs in transportation and retail industries in the U.S., empty shelves and a recession this summer.

Seroka said he thinks U.S. retailers have about five to seven weeks before the impact of the curtailed shipments shipping begins to bite, partly because companies stocked up with larger shipments ahead of Trump’s tariff announcements.

“I don’t see a complete emptiness on store shelves or online when we’re buying. But if you’re out looking for a blue shirt, you might find 11 purple ones and one blue in a size that’s not yours. So we’ll start seeing less choice on those shelves simply because we’re not getting the variety of goods coming in here based on the additional costs in place. And for that one blue shirt that’s still left, you’ll see a price hike,” Seroka said.

[SalesServiceGuy]

White House blasts Amazon over tariff cost report: ‘Hostile and political act’

• The White House slammed Amazon for reportedly planning to display the cost of President Donald Trump’s tariffs next to the total price of products on its site.
• “This is hostile and political act by Amazon,” White House press secretary Karoline Leavitt said at a press briefing with Treasury Secretary Scott Bessent.
• Shares of the retail giant founded by Jeff Bezos dropped in premarket trading following the remarks.
• About 70% of products sold by the company are made in China. Trump slapped tariffs as high as 145% on imports from that country.

The White House on Tuesday slammed Amazon for reportedly planning to display the cost of President Donald Trump’s tariffs next to the total price of products on its site.

“This is hostile and political act by Amazon,” White House press secretary Karoline Leavitt told reporters.

“Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?” Leavitt asked.

She added, “This is another reason why Americans should buy American.”

Shares of the online retail giant founded by Jeff Bezos dropped more than 2% in premarket trading following the remarks.

Amazon did not immediately respond to CNBC’s request for comment.

The Trump administration’s aggressive swipe came in response to Punchbowl News’ report earlier Tuesday morning that Amazon will soon show consumers how much of an item’s cost comes from tariffs.

The amount added as a result of tariffs will be displayed right next to each product’s total listed price, a person familiar with the plan told the news outlet.

A reporter in Tuesday’s press briefing asked Leavitt and Treasury Secretary Scott Bessent if they agreed that Amazon’s move is a “crystal-clear demonstration that it’s the American consumer, and not China, who is going to have to pay for these policies.”

Leavitt opted to respond because, she said, she “just got off the phone with the president about Amazon’s announcement.”

Amazon is not the first retailer to put a spotlight on how new tariffs are changing its prices.

China-based fast fashion giants Shein and Temu have both added massive surcharges in recent days. Temu now includes a line on its checkout tally showing an “import charge” that adds around 145% for each item.

Leavitt’s response could signal an emerging rift between Trump and Bezos, who has joined other billionaires and tech leaders in cozying up to the Republican president since he won the 2024 election.

After frequently catching Trump’s ire in years past, Bezos in December expressed optimism about the Republican’s second term, saying he believes Trump has grown calmer and more confident.

The same month, Amazon donated $1 million to Trump’s inaugural fund. Bezos later attended Trump’s inauguration.

Bezos drew further accusations of seeking to court Trump when he forced the Washington Post, which he owns, to restrict its opinion section to publishing only pieces in defense of “personal liberties and free markets.”

But Amazon’s business has come under strain in the face of Trump’s sweeping tariffs plans — especially his 145% duty on China, where up to 70% of Amazon goods are sourced, according to Wedbush Securities.

As Amazon merchants have started hiking prices on a wide array of goods in response to the tariffs, the company has started emailing the sellers to gauge the impact of Trump’s agenda.

Leavitt, after delivering her statement on Amazon, was asked if Bezos is “still a Trump supporter.”

“Look, I will not speak to the president’s relationships with Jeff Bezos, but I will tell you that this is certainly a hostile and political action by Amazon,” she said.

[Mako]

The cost of the thermal paper used in many label printers and Point of Sale printers has been rising due to the scarcity of one of its main compounds called leuco dye. Heat from the printhead "activates" the dye and generates the black text and characters.

Leuco Dye is manufactured exclusively in China and specifically by the company Connect Chemicals , responsible for 80% of the world production.

With the USA/China trade war now in full swing, leuco dye shipments to the USA are likely going to get very scarce and very expensive.

The new Toshiba BX410T label printer is capable of printing on both low cost plain paper labels (aka thermal transfer) and direct thermal using leuco dye coated paper.

The Toshiba BX410T industrial label printer brings industry 1st copier features to the label printer industry with compelling operating costs and on-site techncial support.

This sounds like an awesome opportunity for an American entrepreneur to develop an alternative made here or by America friendly country. Fluke China.

[Copier Addict]

This sounds like an awesome opportunity for an American entrepreneur to develop an alternative made here or by America friendly country. Fluke China.

Are there any US friendly countries left? Trumpy has pushed them all away. Oh, you mean Russia! Okay, I'll give you that one.

[SalesServiceGuy]

There are already many plain paper label manufacturers (aka label convertors) in the USA sourcing raw materials from within America.

The challenge is to get the very many users of direct thermal labels (coated in leuco dye) to change to thermal transfer labels printed with a carbon ribbon.

The adantage of Direct Thermal ribbons is that they are simpler (but not much simpler) to reload labels.

[slimslob]

Originally posted by SalesServiceGuy

The cost of the thermal paper used in many label printers and Point of Sale printers has been rising due to the scarcity of one of its main compounds called leuco dye. Heat from the printhead "activates" the dye and generates the black text and characters.

Leuco Dye is manufactured exclusively in China and specifically by the company Connect Chemicals , responsible for 80% of the world production.

With the USA/China trade war now in full swing, leuco dye shipments to the USA are likely going to get very scarce and very expensive.

The new Toshiba BX410T label printer is capable of printing on both low cost plain paper labels (aka thermal transfer) and direct thermal using leuco dye coated paper.

The Toshiba BX410T industrial label printer brings industry 1st copier features to the label printer industry with compelling operating costs and on-site techncial support.

There is a major problem with all thermal paper. If stored where it can get too warm or placed in direct sunshine the entire label or sheet of paper will turn black.

[SalesServiceGuy]

There is a major problem with all thermal paper. If stored where it can get too warm or placed in direct sunshine the entire label or sheet of paper will turn black.

I have been selling label printers and supplies for more than 20 years. This is not a significant problem with the high volume clients (where the money is) that I focus on..