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How Trump’s trade war is impacting my business

Today, I read where president Trump has turned socialist by ordering American businesses to stop doing business with China. Under the current laws and the democratic-capitalistic heritage of America, no politician has any legal or moral right to tell any American business how to operate.

We fought a war with Britain in 1776 to secure such rights, and I will not quietly stand by and watch President Trump try to dismantle my freedom to do business as an American citizen. Trumps’ comments sound more like the words of Chairman Mao than any American president in my memory.

President Trump’s trade war with China, the EU, and even Canada, has become a complete and unqualified disaster. Farmers are teetering on the edge of bankruptcy, businesses are scaling back plans to expand, investors are pulling out of the stock market with reasonable fears that our economy may soon collapse. To bring this matter specifically home to Plumas County, please let me describe how Trump’s trade war will impact my MiniFlex Microphone business.

MiniFlex microphones are produced in Greenville using components from eight different countries located on three different continents. We sell our products all over the world, and the European Union (EU) is our second largest market. We originally had manufacturing only in China, but in order to bring jobs to Plumas County, I moved all manufacturing to Greenville. At that time, we paid a duty of approximately 8 percent for components delivered from China. And our customers in the EU were charged a 12 percent excise tax for importing our products.Now we are paying 20 to 30 percent import taxes on goods from China, and the EU has responded to Trump’s trade war by increasing the excise tax to 20 percent, or more. So what was originally a total import cost of 20 percent to ship components into Plumas County and finished products out to the EU has now more than doubled.

At the same time, I can have our MiniFlex products manufactured in China and shipped directly to the EU for a total import tax of 6 percent (the EU and China have a friendly trade relationship). Plus, manufacturing in China would lower labor costs by 30 percent.

At the bottom line, MiniFlex is now absorbing a cost increase of approximately 80 percent by trying to manufacture products here in Plumas County and ship them overseas to the EU. This is not a sustainable situation, and if Trump’s trade war continues, I will have no option, but to begin moving manufacturing, and local jobs, back to China, and begin shipping products directly to foreign customers from China.

How much longer will Americans continue to support this mayhem and attack on our freedoms? I beg everyone reading these words to please help keep socialism out of America. It is time to replace President Trump with someone who will respect and support fundamental American values of freedom, capitalism, and free trade. 2020 may be our last chance to keep our economy, and our traditional American freedoms, from being fundamentally destroyed.

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