High tariffs become 'real' with our first $36K bill (Adafruit)

[usonian]

OUCH


https://blog.adafruit.com/2025/05/08/high-tariffs-become-real-with-our-first-36k-bill/

We’re no stranger to tariff bills, although they have definitely ramped up over the last two months. However, this is our first ‘big bill’, where a large portion was subjected to a 125%+20%+25% import markup. Unlike other taxes like sales tax where we collect on behalf of the state and then submit it back at the end of the month, or income taxes, where we only pay if we are profitable, tariff taxes are paid before we sell any of the products and are due within a week of receipt which has a big impact on cash flow.

In this particular case, we’re buying from a vendor, not a factory, so we can’t second-source the items (and these particular products we couldn’t manufacture ourselves even if we wanted to, since the vendor has well-deserved IP protections). And the products were booked & manufactured many months ago, before the tariffs were in place. Since they are electronics products/components, there’s a chance we may be able to request reclassification on some items to avoid the 125% ‘reciprocal’ tariff, but there’s no assurance that it will succeed, and even if it does, it is many, many months until we could see a refund.

We’ll have to increase the prices on some of these products, but we’re not sure if people will be willing to pay the higher cost, so we may well be ‘stuck’ with unsellable inventory that we have already paid a large fee on.

Adafruit sells neat electronics parts and devices.


HEY DONALD

[harumph]

1. I sometimes buy from Adafruit when I'm on a prototyping jag -

Mostly doing hobby Pi or Arduino automation projects. I haven't purchased in a while though. Holy Hell!
This is depressing.