Donald Trump
The American company started the worldwide trade war by US President Donald Trump, now the American company is not untouched. Due to this trade war, the top leadership of Daddario & Company, the world’s top musical instrument, has to make planning and change in the head office daily. Actually, this company imports goods to make musical instruments, due to trade war, this company has to pay extra tax on many things.
In April, Trump created so much ruckus about the trade that the officers of the company used to meet daily, but now as they have got used to dealing with the changing rules, they meet only once a week and plan how to save business and how to catch new opportunities.
Trade war affected the world spleen chain
The process of such strategy meetings is going on across America because Trump’s tariff has added obstacles and extra expenses to the global supply chain made for decades. A family company like Daddario, which has been running for the last 50 years, is now looking at every aspect of its business where the risk is. For this, they have drawn ways like making free trade zones and changing the root of shipment, so that tax can be saved.
America is the highest tax in America after 1930
In the last few months, the US has imposed at least 10% tax on most important goods. Steel, aluminum, car and car parts have even more tax. According to the budget lab of Yale University, after this trade war, America’s effective tax rate has reached around 20%, which is the highest since 1930.
Daddario is one of the world’s largest music accessory companies. The company has an annual sale of $ 235 million and has six factory in the US. Five of these factors are in the long island area, where 7.5 lakh strings are made daily. There is production from base guitar to Banjo, Viola and Mandolin here. The company’s products are well -liked among the professional music and amateur people. John Oats of Hall and Oats, Jazz Guitarist Pat Methini and Country Singer Chris Stapelton use their string.
Exports occur in 120 countries
Even though the company makes most of the products in the US, the supply chain and distribution are global. The company exports its 45% production to 120 countries. The largest foreign market is Japan. The global presence of Daddario causes new problems. For example, in the recent meeting, the issue of Japanese oak wood arose. The company makes drumsticks from this wood named Shira Kashi Oak, which is famous for strength and grip.
Some taxes are being saved like this
The company has drawn tricks to avoid some tax. As the goods that came from China, they were first brought to America and kept in the warehouse and then the customers from all over the world were sent, but now the company is directly delivered to the customers from China. This led to the protection of American tax. Chinese suppliers are also helping more in this. Earlier, he used to shy away from sending small orders directs, but after increasing the tax, he agreed.
What will happen next, will see
The company has applied to declare a part free trade zone in the warehouse of Farmingdale. With this, you can store imported goods there and only tax will have to be paid when used in domestic order. The company will also do some assembly work there.
Daddario said – We will ask for parts from China and assemble with local parts here and then export, then we will not have to pay tax. However, it can take more than a year because special security and fencing will also have to be installed for this. The company said, if Trump imposed 30% tax on Mexico and Europe, it will cost more expensive from France. Now let’s see what happens on 1 August.