i3 - September/October 2019 - 36

Policy

By Roger Alves

G U E ST B LO G

 A  

merican family businesses create over 60% of new jobs
and are the main drivers of our nation's gross domestic
product. My family business, Scosche Industries Inc.,
is one of those creator companies.
Almost 40 years ago, I co-founded
Scosche with my wife out of our own
home, and our two sons will soon take
over. The company has grown from a
couple in a garage with a dream, to vehicle tech and phone accessory dealer that
sells to some of the largest retailers in
the country. We employ over 200
Americans between our California headquarters and our distribution facility in
Alabama. We also design and develop
most of our 4,000 products here in the
United States. However, the majority
90% of our products are manufactured
in China, because we cannot make them
here and stay competitive.

In just the first month of the U.S. government's $50 billion tariffs on Chinese
imports last year, our business undertook significant losses. In fact, last July
was a zero-profit month for us. And
after the third round of U.S. tariffs on
$200 billion worth of Chinese products
went into effect in September, our losses
rose to over $3 million. Since then, we
have moved production of key items to
other countries outside of China and cut
down on certain models all together to
survive the increasing costs that are the
direct result of these tariffs.
That's because the retailers we sell to
are not mandated to accept the tariffs.

As an American business owner,
I am crushed by losses every day the
failing tariff strategy continues.

In layman's terms, we can't force the
stores who sell our products to buy them
at higher prices from us. Contractually
speaking, retailers have a 60-day period
to implement a price-hike. But these
tariffs aren't simply a price hike - they're
a government-mandated tax on the
companies that produce tech devices
and the consumers who want these
products. So, our company is forced to
absorb millions of dollars in lost profits,
while Chinese companies undercut us
and sell directly to our customers.
As an American business owner, I am
crushed by losses every day the failing
tariff strategy continues. But consumers
are also being hit. If list 4 goes into effect,
it will completely wipe out the strong
economic growth President Trump is so
proud of creating. It will be as if all our
stock market growth over the last two
years never happened. The tax cuts that
Congress passed will be wiped away.
The president's tariff strategy is intended
to bring manufacturing back home to
the U.S., but it is having the opposite
effect. Instead, businesses like ours have
been forced into the painful choice of
either laying people off or shutting
down. We have already had one layoff.
The longer the president waits to
make a deal with China, the more significant the economic decline is that
he's creating. Already, the tariffs are
creating an economic blockade on our
borders, effectively nationalizing my
company. The "wall" President Trump
will end up with is the wall of consumer
shock and spending stoppage.
Mr. President, please turn this ship
around before it's too late for my family and American small business owners like us.
Roger Alves is co-founder and CEO,
Scosche Industries

36

SEPTEMBER/OCTOBER 2019

i3_0919_POLICY_Guest_Blog.indd 36

Courtesy of Scosche

Roger Alves

Tariffs Could Tear Apart
My Family Business

I T I S I N N O VAT I O N

9/9/19 8:12 PM


https://www.scosche.com/ https://www.scosche.com/

i3 - September/October 2019

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