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Over and out: CB radio-maker struggles to adjust to Trump tariffs
Last edited Mon Sep 24, 2018, 04:27 PM - Edit history (1)
CB-radio biz in Illinois, whose radios are made in China, looks around Asia for another site b/c of Trump tariffs. https://www.washingtonpost.com/amphtml/business/economy/over-and-out-cb-radio-maker-struggles-to-adjust-to-trump-tariffs/2018/09/23/87cf518a-b6b8-11e8-a2c5-3187f427e253_story.html?tid=ss_tw&utm_term=.e8c164da3ceb&__twitter_impression=true …
Link to tweet
Business
Over and out: CB radio-maker struggles to adjust to Trump tariffs
By Jeanne Whalen
September 23, 2018 at 6:20 PM
CHICAGO —Cedar Electronics has been selling CB radios to American truckers since the 1960s, helping connect the workers who keep the U.S. economy rolling. But these days Cedar’s business isn’t exactly trucking along. ... The Chicago-headquartered company is racing around Asia looking for other countries to host its manufacturing, after the radios Cedar makes in China and brings to the United States were hit with one of the Trump administration’s 25 percent tariffs this summer, making them more expensive to import.
....
The White House’s decision to extend its tariff campaign to an even broader range of Chinese imports starting Monday is putting similar pressure on more U.S. companies to uproot their Chinese manufacturing, and to consider layoffs, price hikes and investment cuts. ... “We are looking as fast as possible to find an alternative {manufacturing} place, but we’re dealing with a very unstable situation,” said Cedar vice president Mark Karnes, referring to President Trump’s penchant for issuing policy decisions by tweet. He added: “As a business, my government just clubbed me over the head.”
The Consumer Technology Association alone has heard from hundreds of U.S. member companies hurt by the levies, many of which are small businesses ill equipped for this sort of tumult, said Sage Chandler, vice president for international trade at the lobbying group. ... “Eighty percent of our companies are small and medium enterprises,” she said. “They don’t have trade experts on staff. They don’t have customs people on staff.”
....
Cedar Electronics’ predecessor company was the first to introduce CB radios to the market decades ago. “We like to joke it was the first social media device,” Karnes said. The radios, made famous by movies like “Smokey and the Bandit,” are still used by many truckers, despite the advent of cellphones. .... About 15 years ago, Cedar moved its manufacturing to China to save money on parts and labor, Karnes said. ... Cedar imports almost all of its Cobra-brand CBs to North America, where it holds almost 80 percent of the market. The radios are mostly sold at large truck stops, for $99 to $199, depending on the model.
....
Jeanne Whalen is a reporter covering business around the world. She previously reported for the Wall Street Journal from New York, London and Moscow.
Over and out: CB radio-maker struggles to adjust to Trump tariffs
By Jeanne Whalen
September 23, 2018 at 6:20 PM
CHICAGO —Cedar Electronics has been selling CB radios to American truckers since the 1960s, helping connect the workers who keep the U.S. economy rolling. But these days Cedar’s business isn’t exactly trucking along. ... The Chicago-headquartered company is racing around Asia looking for other countries to host its manufacturing, after the radios Cedar makes in China and brings to the United States were hit with one of the Trump administration’s 25 percent tariffs this summer, making them more expensive to import.
....
The White House’s decision to extend its tariff campaign to an even broader range of Chinese imports starting Monday is putting similar pressure on more U.S. companies to uproot their Chinese manufacturing, and to consider layoffs, price hikes and investment cuts. ... “We are looking as fast as possible to find an alternative {manufacturing} place, but we’re dealing with a very unstable situation,” said Cedar vice president Mark Karnes, referring to President Trump’s penchant for issuing policy decisions by tweet. He added: “As a business, my government just clubbed me over the head.”
The Consumer Technology Association alone has heard from hundreds of U.S. member companies hurt by the levies, many of which are small businesses ill equipped for this sort of tumult, said Sage Chandler, vice president for international trade at the lobbying group. ... “Eighty percent of our companies are small and medium enterprises,” she said. “They don’t have trade experts on staff. They don’t have customs people on staff.”
....
Cedar Electronics’ predecessor company was the first to introduce CB radios to the market decades ago. “We like to joke it was the first social media device,” Karnes said. The radios, made famous by movies like “Smokey and the Bandit,” are still used by many truckers, despite the advent of cellphones. .... About 15 years ago, Cedar moved its manufacturing to China to save money on parts and labor, Karnes said. ... Cedar imports almost all of its Cobra-brand CBs to North America, where it holds almost 80 percent of the market. The radios are mostly sold at large truck stops, for $99 to $199, depending on the model.
....
Jeanne Whalen is a reporter covering business around the world. She previously reported for the Wall Street Journal from New York, London and Moscow.
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= new reply since forum marked as read
