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00:00:00
yes this product Joseph Shammi if you know of delta children the nation's largest supplier of kids furniture his company imports cribs and bassinets from China and sells them to major US retailers like target and Walmart but with China and the U. S. embroiled in an all out trade war sham he's feeling the hits so retailers are canceling orders of putting what is on on hold because they're not Sir sure if this duty rates gonna stay in effect or not stating a fact so we're in a dilemma we don't know we uncertainty is the worst thing you could do for business she hit me says he lost between eight to ten million dollars in sales when you as president Donald Trump slept ten percent tariffs on Chinese goods in September originally thought that the temp someone's gonna eventually go away and we were anticipating it so we only raise the prices a few points to kam said he was just recovering from that blow when trump raise tariffs to twenty five percent in early may as talks with China fell apart now we found out we were wrong the ten percent the still still on and the twenty five percent this is going to affect any any day now so how do you plan Shammi situation is a window into how the trade spats between the world's two largest economies is throwing the global furniture business into disarray writers we support line the shops that sell furniture telling us that they're reluctant to raise prices on U. S. shoppers because you can always put off the purchase of a couch so what they've done is there going back to their Chinese factories who contributed half of the cost of the ten percent terra and asking for more but there's a real question as to how much wiggle room those factories have less so what a lot of big retailers like Walmart or doing is squeezing costs wherever they can that means sometimes they're canceling orders of a factory says they can't take on the extra expense or they're putting in tough terms that say you can't raise prices once we set them , or they're just moving the sourcing somewhere else Macy's said the higher tariffs will hit its furniture business particularly hard well William Sanoma and I kia are among the retailer shifting sourcing away from China but that doesn't work for Shammi we cannot move the production overnight I have hundreds of people in China the test the products every single day to make sure that our children are safe the delta crib he says his company has been working with some suppliers in China for over forty years and while he doesn't want to cut those relationships he says the twenty five percent tariff made for some to