Live data from Hacker News

Small U.S. town, big company. Can it weather the tariff Blizzard? (Digi-Key) (2025)

npr.org

11–20 of 43 posts

Re: Small U.S. town, big company. Can it weather the tariff Blizzard? (Digi-Key) (2025)

#11
post #5

When I order from Mouser (a Digi-key competitor based in Dallas) they plainly charge a 10-15% tariff fee. I'm struggling to understand why this solution isn't obvious. You have to pass the cost onto the consumer, or your margins dwindle. It's trivial math. > People are also having to intervene in once-automated tasks. Thousands of orders that used to auto-flow directly to the warehouse floor for same-day shipping now…

The accounting of it all would be far from trivial.

Re: Small U.S. town, big company. Can it weather the tariff Blizzard? (Digi-Key) (2025)

#12
post #5

When I order from Mouser (a Digi-key competitor based in Dallas) they plainly charge a 10-15% tariff fee. I'm struggling to understand why this solution isn't obvious. You have to pass the cost onto the consumer, or your margins dwindle. It's trivial math. > People are also having to intervene in once-automated tasks. Thousands of orders that used to auto-flow directly to the warehouse floor for same-day shipping now…

Mouser has become unreliable. Most of the analog parts we've ordered get cancelled and customer service has no clue why.

Just once I managed to get to some kind of manager who told me point blank "we won't sell this part to startups."

Re: Small U.S. town, big company. Can it weather the tariff Blizzard? (Digi-Key) (2025)

#13

Should note that this article is from April 2025. Digikey sruvives and the tariffs are supposed to be refunded.

Even if tariffs are refunded at some point, the cost of implementing and managing the tariffs, list sales, lost opportunities and so on are not. Nor is the cost of recovering the tariffs from the government.

Re: Small U.S. town, big company. Can it weather the tariff Blizzard? (Digi-Key) (2025)

#14
It seems that no one ever mentions that every dollar given up to tariffs is that much less for growing staff, equipment, facility and R&D expansion. It's literally a drag on the entire GDP and ecomomic growth.

More subtle is that every dollar saved in buying components from China is more money for all of the forementioned.

Re: Small U.S. town, big company. Can it weather the tariff Blizzard? (Digi-Key) (2025)

#16
post #5

When I order from Mouser (a Digi-key competitor based in Dallas) they plainly charge a 10-15% tariff fee. I'm struggling to understand why this solution isn't obvious. You have to pass the cost onto the consumer, or your margins dwindle. It's trivial math. > People are also having to intervene in once-automated tasks. Thousands of orders that used to auto-flow directly to the warehouse floor for same-day shipping now…

I worked at Mouser as an engineer for a few years. This included work on the service that charges this blanket tariff rate, which includes incredibly complex business logic that ended up taking half the year to make. and that was with upper management pushing us very hard to get it done. Digi key from what i understood is a smaller company that lacks the ability the capacity to get something like this done as fast. or at least thats my best guess. Mouser knew the obstacles digi key dealt with when it came to things like capacity, storage, and developer power. I remember the discussions about how we could "beat" them out in sales revenue and why we were more "bulletproof" in the way we did business.

Re: Small U.S. town, big company. Can it weather the tariff Blizzard? (Digi-Key) (2025)

#17

I've only seen a small portion of the chaos from my side of the market, but that's been chaotic enough. All of this chaos has actually slowed down our US manufacturing buildout. We'd like to build US factories, but we're having to slow them because of the uncertainty. A foreign factory only has the uncertainty on the US import/export, while a US factory has uncertainty on all imports/exports.

Anecdotes are not data, so here's some data:

https://fred.stlouisfed.org/series/C307RC1Q027SBEA

US Factory build out investment increased from $80B/year to $240B/year under Biden.

Trump's economic policy has managed to undo $30B of that so far, and the trend is accelerating.

Re: Small U.S. town, big company. Can it weather the tariff Blizzard? (Digi-Key) (2025)

#18
post #5

When I order from Mouser (a Digi-key competitor based in Dallas) they plainly charge a 10-15% tariff fee. I'm struggling to understand why this solution isn't obvious. You have to pass the cost onto the consumer, or your margins dwindle. It's trivial math. > People are also having to intervene in once-automated tasks. Thousands of orders that used to auto-flow directly to the warehouse floor for same-day shipping now…

Mouser has become unreliable. Most of the analog parts we've ordered get cancelled and customer service has no clue why. Just once I managed to get to some kind of manager who told me point blank "we won't sell this part to startups."

I worked at Mouser as a developer for a few years, the real reason is because our parts are used by terrorists, etc. to build weapons that kill people/bombs.

We created a service that blocks people from buying various parts using a ton of different complex business rules (one simple rule we had was we straight up didn't sell ANYTHING to the middle east for a while).

Startups were another business we didn't sell to simply because of the sheer amount of fake companies we got trying to work around our rules engine.

Alot of the rules for our service was mandated from the FBI. That was a fun call to reveive from them.

Re: Small U.S. town, big company. Can it weather the tariff Blizzard? (Digi-Key) (2025)

#19

Earlier quoted context omitted.

Yeah that’s what I thought too. I think people are find with some 50-100% hike of prices on ham radios, oscilloscopes, and even phones, if local production starts to appear.

What lol no they’re not. None of those benefits of a price hike go to American workers. They get low wage factory jobs, not old school pension jobs, and all their stuff goes up in price? Laughable. I doubt Americans won’t even pay 5% more to get stuff made in the USA.

Ah OK, so when do we see production coming back to North America? On the other hand, didn't TMSC and other manufacturers plan to open a few spots in the US?

Re: Small U.S. town, big company. Can it weather the tariff Blizzard? (Digi-Key) (2025)

#20
post #16
post #5

When I order from Mouser (a Digi-key competitor based in Dallas) they plainly charge a 10-15% tariff fee. I'm struggling to understand why this solution isn't obvious. You have to pass the cost onto the consumer, or your margins dwindle. It's trivial math. > People are also having to intervene in once-automated tasks. Thousands of orders that used to auto-flow directly to the warehouse floor for same-day shipping now…

I worked at Mouser as an engineer for a few years. This included work on the service that charges this blanket tariff rate, which includes incredibly complex business logic that ended up taking half the year to make. and that was with upper management pushing us very hard to get it done. Digi key from what i understood is a smaller company that lacks the ability the capacity to get something like this done as fast. o…

Can't Digikey simply charge a say 25% premium? Would that push them out of the market, considering demand is still high.
Post reply on HN