How a Trade War Hurts Business
Dear Leader and Me
TODAY'S RAMBLINGS
2 Minute Read
Happy Monday. And thank God the Chiefs didn’t win. Plus, Byron Browne IV is over the moon. But most have had enough NFL for a while, so let’s turn to global trade.
Seriously.
Because above is a design I created for a 4-zone home audio system, for using Roon. In English, if connected to an appropriate amplifier and then to 4 pairs of speakers, you can stream your own music, TIDAL, or Qobuz using this box, controlling it all with your phone.
The backstory: As many reading this know, I was in the residential tech game for a very long time. For literally decades, I put Sonos in the homes of some of the wealthiest people in the world. But even before their 2024 meltdown, I eschewed Sonos myself for Roon. You can read about them if you’re interested, but the bottom line:
I love Roon and it is Diamond Certified
There are only 2 products that do what I’m envisioning, and the least expensive is $1,600; I think I can build and sell the above at a nice profit for about half that
We’ve used individual versions of the same thing for over 5 years and they’re bulletproof
Sonos doesn’t work well any longer for many people
Anybody with a home with 4 (or more) pairs of speakers wired to a central location that has an Ethernet broadband Internet connection available is a potential customer
With that said, the market is primarily for those already aware of or using Roon - in other words, it’s a niche of a niche market - which I see has a positive
So I’ve been entertaining the idea of building a prototype, writing a plan, and perhaps going to Kickstarter or Indiegogo to raise money and actually do this. As above, it’s a tiny niche, but I think I could sell quite a few of these; I see it as the definition of a “cottage industry.”
Sounds pretty cool, yes? But it may go nowhere. Because I’ve hit a roadblock, and it’s Dear Leader’s mindless tariff obsession.
Unless you’ve been under a rock, you’re likely aware even the smallest of enterprises can source things from China. One-offs or in bulk, one only needs to hang at alibaba.com and its ilk for a short time to understand one can buy nearly anything, and cheaply.
Well, one used to be able to buy nearly anything cheaply from China.
Because now, Dear Leader wants to further cock up our relationship with the Earth’s factory. 10% tariffs on everything? More? Less? War over Taiwan? Who knows, as evidenced by this blurb from my beloved Economist.
The US Postal Service said it will resume parcels from China and Hong Kong after a brief suspension following President Donald Trump’s decision to end duty-free imports under $800, known as de minimis exemptions. The move disrupted shipments from retailers like Shein and Temu. Nearly half of de minimis packages sent to America come from China.
Fine, but it’s not. The general uncertainty about relying upon China to supply critical products for my sonic.build 4 product makes me want to not screw around with any of this.
In other words, why bother starting a company?
OK, while all of this is true, clearly, some old retired crank not being able to monetize a fantasy does not a crisis make.
The crisis is that Dear Leader’s tariffs will have the same impact it did on me, but on real businesses.
Think of it. What executive in their right mind would do pretty much anything now that depends upon reasonably priced, quality goods from China being readily available? Or conversely, embark upon selling something - anything - in China?
It speaks volumes that the only hope we may have is that Elonia sells a lot of his shitty cars in China.
FROM THE UNWASHED MASSES
Thank you for reading this newsletter.
KLUF
Factory Girl! Diamond Certified, too, but let’s hope my upcoming novel is not one . . . and Dear Doctor, please, No Expectations as I try to put this Jigsaw Puzzle together. And could I please have some Sympathy? Some Taste?
I am the Salt Of The Earth, after all, if not a Prodigal Son.