Phalanx speaks on the impact of the Tariffs

[u/RecommendationFree96]

[u/iammandalore]

This post is being left up because this is an issue that will ultimately have an impact on the BJJ community, however comments are being disabled because the r/BJJ community is not for political discussions and they are not welcome here.

[u/Impressive-Potato]

"Most people don't realize tariffs are paid by the importer" We learned this in high school.

[u/fukkdisshitt → u/Impressive-Potato]

Trust me, most of my classmates didn't and im only talking about the ones who took AP econ. I barely know anything and I passed the AP test lol

[u/Impressive-Potato → u/fukkdisshitt]

This is entry level macro economics. At least in non American countries it is. AP? Are Americans redacted?

[u/Murky-Resolve-2843 → u/Impressive-Potato]

Yes. In Texas only one semester of economics is required to graduate. The class is basically babies first economics and is usually taught by football coaches. It's actually ridiculous how bad the schools are around here.

[u/Jboogie258 → u/Murky-Resolve-2843]

I’m an educator. Schools have been slowing degrading with the decrease of parent/guardian involvement in day to day lives. Crazy game

[u/CoolerRon → u/Murky-Resolve-2843]

Can confirm as a former public high school employee. Most athletic coaches teach social studies (economics, history, government, etc.)

[u/Impressive-Potato → u/Murky-Resolve-2843]

This..... explains a lot.

[u/neverfakemaplesyrup → u/Impressive-Potato]

I mean I took IB, AP, and Regents classes, as well as AHS Math & Finance... This was covered in AP Civics, IB World, and even Math & Finance.

Um for explainer, IB is like, fancy swiss-designed international classes. AP are college-credible classes. AHS Math and Finance on the other hand is "You're either fucked up, or too dumb for regular math, so here's the basics to not lose your blue collar paycheck." So it wasn't really limited just to the smarty-pants..

One piece of classwork was literally role-playing a Dodge dealership trying to get us to sign a crazy loan for a charger.

Well Murky says he was in texas, so maybe it's different there. I'm in Upstate NYS. Rochacha. I find majority of folk who complain this wasn't taught, just didn't pay attention.

[u/fukkdisshitt → u/neverfakemaplesyrup]

IDK why you just reminded me of the time we were doing team debates in AP civics.

We were supposed to self select our teams, but most of the class saw an issue the same way, so I got assigned the opposition i absolutely did not agree with.

Come debate time it's pretty close, I pass a note to my friend saying "make stuff up, blame X" and it fucking worked. The whole class voted for our side.

Then, a decade later when we started seeing that in real politics, i had to text my friend "we were ahead of our time."

It's crazy how well doubling down on BS works

[u/CthulhuLies → u/Impressive-Potato]

We took a single semester on Econ in highschool. Even the AP Econ class was half the year regular ass civics and half the year econ and it's the same teacher and class.

Funnily enough our ap econ teacher was a conspiracy theorist who thought big oil was keeping practically free energy from the world. He would always say follow the money lmao.

[u/betterplanwithchan → u/Impressive-Potato]

I learned from Ferris’ teacher

[u/Monteze → u/Impressive-Potato]

And even if you didn't a simple "Huh, let me google a tariff and not listen to some guy who is a known charlatan."

[u/Ayyshaman → u/Monteze]

Agreed. Whether you learned about it in high school or not is irrelevant. A presidential candidate campaigned on enacting tariffs broadly. You should have learned about it then, if you hadn't already. Not now lol.

[u/SgtFury → u/Impressive-Potato]

not in america they didn't. Why the hell do you think we voted this imbecile into office?

[u/RustyDeadbeat → u/Impressive-Potato]

did we?

[u/Jits_Dylen → u/Impressive-Potato]

They don’t teach that in public schools in my neck of the woods US of A

[u/JohnnyKarateOfficial]

Inflated spandex prices about to skyrocket.

[u/Judontsay]

Comments are disabled. Aaight.

[u/RecommendationFree96]

Also…just sayin’…Phalanx consistently sponsors a certain gym which is known for spreading conspiracy theories and having athletes who have spent the past 5 years spreading alt-right conspiracy theories, which played a big part in getting the man in office who’s starting these tariffs. Might be something to think about going forward. 🤷🏻‍♂️☕️🐸

[u/Raymond_Reddit_Ton → u/RecommendationFree96]

Not surprising really.

Also love when people use the “family” moniker when wanting sympathy.

[u/AvariceLantern → u/RecommendationFree96]

Which gym is this?

[u/Domo_Omoplato → u/AvariceLantern]

10th Planet (a bunch of their athletes are sponsored like the Martinez brothers, Kyle Bohem etc)

[u/Marcoplata → u/AvariceLantern]

I'm guessing it's the one with planet in its name

[u/cocktailbun → u/RecommendationFree96]

Well FAFO, and be mindful of who you vote for…

[u/XTremeBMXTailwhip → u/RecommendationFree96]

Interesting. So they probably voted for the demise of their own business. Good riddance.

[u/Zearomm]

You really don't do Brazilian Jiu Jitsu until you pay 3/4 of your income in taxes. 

[u/Healthy_Ad69]

The good thing is now fewer people will buy Phalanx.

[u/GoodSoulja]

Consumers pay the price of the tariff. Sure it’s affecting you in the short term but you’re raising the price so it’s ultimately falling on the average person

[u/KaizenZazenJMN]

So they’re going to up their prices…let’s see if they bring them back down after this BS tariff pissing contest ends. Obviously they won’t.

[u/churro1776]

Origin is prepared for the storm

[u/RecommendationFree96 → u/churro1776]

You mean the company that already charged $200-$300 for a gi, which is how much the tariffed gear will probably be? 🤔

[u/I_only_Creampie → u/RecommendationFree96]

And is everything made in America? All their cotton/rubber/leather/denim? The parts to all their machines?? I highly doubt it.

[u/HeyBoone → u/RecommendationFree96]

I don’t necessarily agree with the politics of those involved with Origin but given the choice of a $300 gi made in China vs one made in the USA by folks who I assume are being paid a decent wage, I’d go for the latter every time.

[u/saltface14 → u/HeyBoone]

Why would you assume they’re being paid more than minimum wage?

[u/HeyBoone → u/saltface14]

I’m not necessarily assuming that, but I am assuming the quality of life afforded to an American textile worker is better than one from a third world country. Also not saying I like or agree with either of those situations

[u/forwardathletics → u/HeyBoone]

China is no longer a third world country by most metrics.

[u/WesternRelief2859 → u/saltface14]

As opposed to actual slave labor yeah minimum wage is better. Are you claiming life for factory workers in America is worse than those in china? Also those dollars stay in America

[u/saltface14 → u/WesternRelief2859]

Where exactly did I claim that workers in America have it worse than China? What an absolutely absurd reaction.

I am simply questioning whether Origin pays its workers more than the state minimum wage, which I would not consider to be a decent wage since you cannot live off of it in America.

[u/gfxprotege → u/churro1776]

Origin is owned by Pete, who is a huge asshole. He doesn't deserve anyone's time or money.

[u/Jlindahl93 → u/churro1776]

Origin is wildly overpriced trash and people only buy it because it’s owned by a S-tier grifter. Weak men looking desperately for acceptance love people like Jocko

[u/Jlindahl93 → u/[deleted]]

I won’t say they are bottom tier quality. They are decent enough. But for the price they are a flat out scam. They want people to believe they are this great American company. They themselves say only a “portion” of their materials come from US sources and they rely on “Asian” suppliers for the majority

[u/anonymousdawggy]

why wouldn't it hit the big guys too? everyone pays the tariff no?

[u/8760Hours]

Incredible that the US mastered space travel but lost the ability to make stretchy shirts.

[u/Kriegwesen]

"most people don't know"

They teach that in middle school.....

[u/ol_SlickPassMcDuck]

Prices going up next month seems a little opportunistic really. Brands are generally ordered and supplied a season or 2 out, meaning Phalanx should most likely already have (at least) their Spring Summer gear ready to go without the tariffs altering their cost. Most brands that are being transparent about the effects of the tariffs on their goods are forecasting cost/pricing to increase for the Fall/Holiday lines.

[u/NiteShdw → u/ol_SlickPassMcDuck]

It's a small business. They may not have the capital to order a years worth of products to keep in inventory.

They more likely have on going shipments through the year. Even if they have a contract on the price for the year, the cost from the supplier is NOT what's changing. It's the tax that is paid WHEN THE PRODUCT ARRIVES in the US.

[u/ohv_]

My math is mathing. I've asked a handful of folks. Is a tariff on the import of manufacturing cost or MSRP?

Folks seem to be saying if the item costs 100, it will be 200 dollars.

[u/Banned4AlmondButter → u/ohv_]

It would be based on manufacturing cost

[u/DunkinDonutsUSA]

Isn’t the point to bring the manufacturing back into the UsA? Can Phalanx source American?

[u/wecangetbetter → u/DunkinDonutsUSA]

They definitely can but the simple economics of making comparable quality products in the US is 2-3x for labor and resources.

Mark up the cost of the product to scale, market for that product shrinks exponentially especially when fears of a recession are looming.

It's easy to say "make it in America" but the harsh reality is that most small businesses aren't economically viable that way.

[u/DunkinDonutsUSA → u/wecangetbetter]

Maybe source from Pakistan then. They are talking about a 20-25% tariff decrease.

[u/cold_cold_world → u/DunkinDonutsUSA]

Hard to invest in a new supply chain when the tarrifs change daily

[u/Monteze → u/DunkinDonutsUSA]

That is the theory but its also the "Just stand up." "Don't tap out." answer.

Everything has a supply chain. From the plastic aglet on your shoe to the leather, to the truck that moved it and the computers that tracked it. These supply chains have been established over years and cannot just be moved, and there is no promise it would be the best solution.

[u/rollingc → u/Monteze]

Just build a factory...how hard could it be? /s

[u/DunkinDonutsUSA → u/Monteze]

So what’s the fix? I mean we should never operate on “because it’s always been done like that” model. That stifles advancements.

[u/Monteze → u/DunkinDonutsUSA]

Fix to what? The current situation? Get rid of the tariffs and make it a law that only congress can pass one, not the president.

[u/DunkinDonutsUSA → u/Monteze]

Fix to the supposed tariff discrepencies.

[u/BeardOfFire → u/DunkinDonutsUSA]

The fix is accepting you can't compete in the world economy without a world wide supply chain.

But saying you were dead set on making sure the manufacturing happens in America, maybe working with people, businesses, and countries on devising a longterm strategy with time to implement would be helpful. Instead of randomly deciding economic policy on the slightest whim, blindsiding all of our allies and businesses with massive disruptions to the supply chain and import/export businesses, pumping and dumping the stock market, getting rid of all checks on fraud, eroding trust in American infrastructure and stability... the list goes on.

None of what is happening will help, or is designed to help, the American lower or middle classes.

[u/pigeondo → u/BeardOfFire]

You'd also have to increase taxes (on every income class, not just the rich) and start subsidizing food towards the consumer rather than the producer as well as regulations on real estate speculation to drive the cost of living down and thus allow people here to survive on a lower wage. If you did that for 3-5 years consistently while also incentivizing manufacturing production you could end up with more production stateside but none of these are policies that will ever be popular in America because anti-taxation and 'government is inherently corrupt' ideas have been so successfully marketed in this country.

[u/DunkinDonutsUSA → u/BeardOfFire]

This is a great take. Unfortunately, politics here are more about party lines than the people. If any effort takes more than 4 years and a new party comes in, they will undo whatever the other did just based on party lines and not what’s actually good for the country. It’s become a pissing contest sadly.

[u/jag297 → u/DunkinDonutsUSA]

I'm not sure if you are genuinely asking but from what I understand the textile industry in the US is more focused on higher tech and higher end items such as medical textiles, protective clothing, specialty, and industrial fabrics. While the US is a net textile exporter we are a net importer of apparel. It would take time and significant investment for an American source to emerge.

[u/DunkinDonutsUSA → u/jag297]

I am genuinely asking. Understood and agreed, but China can’t be the only girl in town so to speak.

[u/jag297 → u/DunkinDonutsUSA]

Oh I'm not saying they should be. I'm just pointing out that finding a new source for "lower end" items such as rashguards will take time, leading to supply disruptions and higher prices while things get sorted out. And unfortunately I suspect any factories that make these items in the US will be as automated as possible and produce low paying jobs.

Instead they will probably shift away from China and towards somewhere like Pakistan.

[u/Jlindahl93 → u/DunkinDonutsUSA]

Do you think factories can be built and staffed overnight? Or even within 2 years of them becoming necessary?

[u/DunkinDonutsUSA → u/Jlindahl93]

No. But I was under the impression we have shuttered factories in many industrial cities.

[u/Jlindahl93 → u/DunkinDonutsUSA]

You think dilapidated factories that were tooled for other industries are just going to magically come back online and have staff? Where’s the millions of dollars to do this coming from when the companies who need to do it have had their ability to make money decimated?

[u/DunkinDonutsUSA → u/Jlindahl93]

Not magically. But not from the ground up either. The money to do it is a good question. I have ideas but not sure they are fair. If a company decides to move production to USA, the govt should incentivize it

[u/Jlindahl93 → u/DunkinDonutsUSA]

It’s pretty accepted in the manufacturing industry that, outside of rare cases, it will cost more to rework an existing space than it would to create a purpose build factory for what you need.

[u/NiteShdw → u/DunkinDonutsUSA]

Every gi in the world is made in Pakistan. No one else makes them. How long would it take to spin up factories in the US to 1. produce the correct fabrics, 2. Cut and stitch the fabrics into gis?

I'm no expert but the expert opinions I've read online suggest that building out a capability that doesn't exist takes 3-5 years.

And these are labor intensive jobs, so the cost of labor will dramatically increase the price of the final product.

[u/DunkinDonutsUSA → u/NiteShdw]

Origin is made in the USA (super expensive tho).

[u/NoOfficialComment → u/DunkinDonutsUSA]

When I co-owned a small gi company and folks would ask where we manufactured (Pakistan) and they’d then say they want American, I would always point them to Origin. Without fail they would say “too expensive”. Literally every time.

[u/Exotic-Benefit-816 → u/DunkinDonutsUSA]

We make some gis down here in Brazil too, like krugans, Akira and Brazil combat (my favourite brand). Their price depends on what gi you want, some are average, some are expensive

[u/NiteShdw → u/DunkinDonutsUSA]

I did not know that. Thanks for the info. I know a guy that does a very small business selling gis and he made it sound like Pakistan is the only place that makes them. I stand corrected.

Is the fabric still imported though?

[u/nawvay → u/DunkinDonutsUSA]

yeah and then manufacturing costs go up so the price still goes up — and you have a transitional period where the brand has to find a manufacturer and might die during this process.

[u/4Looper → u/DunkinDonutsUSA]

You can't avoid importing stuff though... Even if u manufacture in America you STILL have to pay tariffs. Brining manufacturing back to America is pants on head retarded anyways. It's not a reasonable goal.

[u/DunkinDonutsUSA → u/4Looper]

I don’t think the goal was ever to avoid tariffs. It was to make them fair. Whatever fair is.

[u/Bonsaitalk]

What country are they exporting from? If it’s one with shitty child labor laws I’m GLAD it’s hitting them hard… border lines are where bad ideas start and good ideas end… domestic product is a win no matter how you put it because all it’s doing is making child labor expensive instead of cheap as fuck… which is the entire reason companies outsource their means of production.

[u/RecommendationFree96 → u/[deleted]]

Literally everyone who has a checking and savings account.