Tales of Transparency

Tales of Transparency: Did Tariffs Kill the Golden Goose?

I seem to be in a rather talkative mood of late, in large part due to new items being announced, the all-important holiday season approaching, and, of course, tariffs. As of August 22nd, 2025, there still seems to be no adequate resolution to the trade war occurring between the US and certain parts of the world, most notably the two biggest culprits Trump has singled out: Bangladesh and China. Currently, goods imported from Bangladesh into the US face a 37% duty placed upon them, making many products, including diecast collectibles, rather pricey as compared to items released before the trade war brewed up. While the tariffs haven’t made it impossible to import new diecast collectibles into the US, they have made it very expensive even for the well-to-do. For instance, Hobby Master’s recently announced MiG-25 Foxbat MAP will weigh in at $179.99 for the first six months after its roll out, While discounts and free shipping offers can be applied to help soften the blow, the net price is still well above the price a MiG-25 once fetched just one year ago.

On the other side of the ledger, product manufactured in mainland China may face a tariff increase of upwards of 145% if no agreement can be reached, making them all but impossible to import and sell within the US unless the asking price is drastically slashed to clear inventory. Corgi’s upcoming B-17, “Royal Flush”, which is already in the hopper and supposed to show up next month, still has no final wholesale price even though we are one month out from them hitting the streets. Other new introductions face the same predicament, and may need to be diverted to other parts of the world if both countries cannot back down from their present positions.

Thus far, the Trump Administration has signed an executive order extending the current tariff truce with China by another 90 days, moving the expiration date to November 10th, 2025. While this delay helps in the short-term, it isn’t a stay of execution, which means much of the toy industry is still languishing in limbo as to what they can and cannot do. Companies based in China — among them Corgi, Panzerkampf, Legion, Dragon, Waltersons, Air Force 1, Calibre Wings, JC Wings, et al — are in a pickle, and therefore face an uncertain future unless some sort of mutually beneficial agreement can be reached by year’s end between the two warring parties, otherwise these companies face an uncertain future that could include closing. While they can still make product for other parts of the world, the fact remains that the US represents the lion’s share of their business and so this uncertainty can come back to haunt them for the foreseeable future.

For now, we’re going to keep our hand on the tiller, hold our breath as we sail into harm’s way, and act as if nothing has changed even though, for all intents and purposes, they have. We’re not sure where this will all lead but suffice it to say that a good deal of grumbling is already occurring from virtually every sector in the industry unless a satisfactory resolution can be reached between the world’s two biggest economies…and quickly.

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Tales of Transparency: FedEx

In a move aimed at garnering more of our outbound shipping traffic, FedEx has extended lower pricing to us for the balance of 2025 and well into the coming year. While we cannot say for certain if this will affect shipments to neighboring postal zones and states in and around the southeast, it should dramatically reduce our shipping costs to the west coast, thereby making it more affordable to send small, medium and larger-sized packages all-around the continental US. Typically we were using FedEx Home Delivery to send larger-sized packages to the west coast because USPS Ground Advantage rates were both inexplicably and abnormally high. Now we should be able to send packages of all sizes to the western most zones at much better rates.

According to our FedEx representative, these revised rates will kick in at our end within the next 24-48 hours. Once they do get implemented, we will review the FedEx rates that are shown to our customers on our web site to see if they are being properly reflected. So, give us a few days before we give everyone the green light to choose FedEx for our westernmost delivery destinations. Again, we reserve the right to select the carrier of our choosing, should one turn out to be appreciably less expensive than the others.

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Tales of Transparency: “Hello, It’s Me.”

Earlier this week, we enabled eBay’s AI feature within their messaging app. This means that if you have a question for a seller such as ourselves, eBay will attempt to field your query automatically by answering basic questions using our listing’s description to see if the answer is readily apparent. I’m assuming that if you require a detailed answer it will then forward your question to us so we have some input and can respond more appropriately. We’re running this app over the course of the next couple of months to see how well it does before letting it loose for the holiday season. If you feel the app isn’t working as promised, you can always reach us at Support@themotorpool.net or by phone at (813) 406-5649 during normal business hours.

I’m not certain if their messaging app will attempt to negotiate with a buyer who may be seeking to make an offer for an item. Bear in mind that we do not accept offers. Our posted prices are fair and competitive. In most instances we offer a generous 10% discount and, where applicable, free shipping, so there’s no point for us to entertain low-ball offers.

Here’s a recent example of how the eBay AI handled a customer’s inquiry:

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Tales of Transparency: “May be delayed”

We’re on the cusp of knowing if the Trump administration plans on following through with its proposed tariffs set to be imposed on May 2nd. As you are no doubt aware by now, we have no idea where we stand with certain manufacturers, particularly those located in China, where the bulk of hobby-related products are still made. What is clear is that many of these companies will not be able to ship their products to the US if the proposed 145% tariff is, in fact, imposed as many fear. Faced with rising inflation costs, the consumer will tolerate only so much before moving on and purchase other items. Supposedly, the Trump administration is in talks with China over the tariff issue, but even if some sort of lesser tariff is agreed upon its unlikely companies will still be able to import their products into our country and hope to turn a profit, or have their products available for the holidays. Part of the problem has to do with neither side wanting to back down first and be perceived as caving to the demands of the other party. This “Blink-manship”, as I like to call it, will end up hurting both countries, ensnaring innocents on both sides until a fair and adequate resolution can be reached. Some have even referred to the stand-off as the first shots in a Sino-Taiwanese War, which many believe will eventually occur some time in the not-too-distant future.

For now, we’ve grouped the affected companies and their products into our web site’s October 2025 Upcoming Release section. Should anything change we will, of course, update this section and attempt to provide the most accurate information possible to our clientele to keep you informed and up-to-date so you can plan your purchases. We recognize that this isn’t the best course of action given the level of uncertainty permeating the market but its all we can currently do given our own situation. In the meantime, we are asking that you refrain from asking us about the expected arrival dates of these products since we simply have no idea about their fate. And, as a cautionary move, we believe that many of the products we do have in stock may see their prices rise as demand remains strong and supplies begin to dwindle. Food for thought if you have your eye set on anything marked as being in stock.

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Tales of Transparency: Hong Kong Joins in On the Tariff War

On Wednesday, Hong Kong announced that it was suspending package shipments to and from the United States, in a move seen by many as a way of sticking it to the current US administration and its escalating tariff onslaught. The decision came in response to Trump’s plan to “eliminate the so-called de minimis exception for items posted from the city to the US. The exemption applied to international shipments worth $800 or less entering the US.”

While the suspension will no doubt come as a shock to some buyers who routinely like to purchase items from Hong Kong sellers because of cheaper prices than their US counterparts, it will almost certainly harm Chinese sellers too who rely upon the service to get their products into the hands of US buyers. Needless to say savvy sellers will find ways around this obstruction such as first shipping their wares to Singapore and then on to the US, but the added cost of trans shipping may be enough to discourage their US customers from making further purchasing moves.

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Tales of Transparency: Decisions, Decisions

Earlier this week, we heard from our principal distributor who stocks several key lines, among them the Hobby Master range of diecast military products. Hobby Master, as it turns out, is made in Bangladesh, which isn’t subjected to the same abnormally high tariffs the Trump administration plans to impose upon China in early May. Unfortunately, this doesn’t mean that Bangladesh has dodged a bullet — far from it. According to the latest tariff plans, Bangladesh will be subject to a 37% tariff, making any products we import from the country exceedingly expensive.

According to our distributor, both the April and May shipments of Hobby Master products are not subject to the tariffs. However, both the June and July shipments will have a 10% tariff tacked on to their existing prices, meaning we’ve had to adjust the retail prices for said items by approximately the same margin. But here’s where it gets dicey. Shipments that do not clear customs by July 8th will be subjected to the 37% tariff already discussed. As a result, our distributor plans to delay the arrival of both the August and September shipments until such time as the tariff picture comes into greater focus. In other words, if the current crisis is not averted and the tariffs do, in fact, get imposed it’s likely that we could see a pause in shipments from Hobby Master, perhaps indefinitely or at least until everything has been straightened out. Lines such as Corgi, Oxford, JC Wings, Panzerkampf and Dragon will almost certainly face the same dilemma since they are manufactured in the PRC, where the current proposed tariff has been pegged at 145%, making them far too expensive to even consider importing. Politics aside, this is clearly a recipe for disaster for a great many industries, not just ours.

Needless to say, we’re hoping that the current trade war is settled to everyone’s satisfaction in the coming weeks to prevent this scenario from occurring. If it should happen, there’s a good bet that product already in stock will go up in price too, since demand will likely remain strong and supply won’t be able to keep pace. As it stands right now, we have ample supplies of each line but cannot predict our stock situation towards the later part of the year should we experience a run on the brands. The same holds true for virtually every segment of the toy industry, so what you see available on store shelves may become scarce at a later date or see their prices jacked up well beyond the norm. You can bet that manufacturers, distributors and retailers are lobbying the Trump administration to re-consider its stance on tariffs, or at least roll them back to acceptable levels so that the holiday season isn’t a lost cause. Thus far its not clear if the proposed tariffs will have an adverse effect on new product announcements since product will still be manufactured for other regions around the world but perhaps in lesser quantities.

If the trade war does goes on for much longer, additional problems could creep into the overall equation that would almost certainly affect the retail sector. For instance, right about now is when most Asian manufacturers are beginning to produce toys and other related products for the upcoming holiday season. If these manufacturers are forced to wait and delay their manufacture, a situation could occur where our US ports are clogged with an abundance of late shipments, a scenario very reminiscent of what occurred during COVID. So even if the green light is issued to make and ship holiday-related products, it isn’t certain if they’ll make it in time to be of much value. Food for thought in today’s economic climate where events seem to be changing on an almost daily basis.

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Tales of Transparency: A Time to Pause

With the Trump Administration’s April 2nd deadline for imposing tariffs fast approaching, it appears as if several manufacturers and distributors are taking a wait-and-see stance when it comes to importing their goods into the US. Presently its not clear how much of a tariff will be applied to product being imported from such countries as China, one of the principal makers of diecast models, and a longtime target of the current administration. Indeed, one of our distributors has already indicated that they plan to increase prices on several lines that they import from China weeks ahead of the looming deadline. Another has thus far decided to delay the import of several lines for the foreseeable future until the matter has been settled one way or the other. Should the tariffs go into effect next month, its possible that these lines will be held up at the ports for several months until a decision has been reached regarding their cost to consumers.

As it stands right now, it may be a rather dry summer and fall in terms of new product making it to market, or at least until a trade agreement has been reached that satisfies both nations. To date, we’ve had to adjust the prices on new product coming in from Air Force 1, Luft-X, Wings of the Great War and Armor Collection. Other companies — most notably Panzerkampf, Legion, Corgi, Dragon and JC Wings — may soon have to be cost adjusted if the trade negotiations fail and pressure builds to import these lines to prevent them from languishing in limbo. Still other key manufacturers — Hobby Master, among them — are made in Bangladesh, may or may not be affected by tariffs since talk seems to change on a week-by-week basis based upon the mood and climate in Washington. To be fair, the president has said that he is “flexible” regarding the imposition of across-the-boards tariffs but as we all know by now flexibility can have different meanings depending upon who we are talking about and when the conversation takes place. In any event, we hope to have further updates regarding the tariffs and, in so doing, discuss possible delays in receiving certain lines as trade negotiations progress.

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It was the Best of Times, It was the Worst of Times

We’ve been overwhelmed by the ground swell of support we’ve received since announcing our inventory liquidation sale on Monday. We thought we would close up shop due to an illness in the family — to be more specific my wife was diagnosed with Normal Pressure Hydrocephalus (NPH). Naturally, I was overcome with grief and worried about our future when I heard the news, unsure what this sudden and potentially dire medical condition would mean to us.

Fortunately, we have a doctor in the family who immediately came to our rescue. She spirited my wife off to Dallas, Texas, where she lives and works and admitted her to Parkland Memorial Hospital, where my wife has been receiving extraordinary care. At its core, NPH means there is a build up of fluid in both the spine and brain, which can lead to all sorts of complications, from loss of balance to delirium and then some. To combat this, two procedures need to be performed – the first, draining of any fluid that has built up in the spine by performing a lumbar puncture, which was successfully done earlier this week. A second procedure involves inserting a shunt into the cranium, which then drains the head of any remaining fluid. The follow-on procedure is scheduled for early March and I’ll be flying to Dallas next week to be with my wife prior to and after the procedure has been performed.

Despite having a great 2024, I decided to announce my retirement and intended closure of our shop in 2025 after hearing the news. When I made that decision, several people indicated that it might be best to see how the second procedure turns out before going any further. That said, I reluctantly agreed, although I will eventually move our business, home and belongings to Dallas to be closer to our immediate family should anything else be required. I don’t know exactly when this will occur since this whole episode was unexpected and unplanned. I doubt it will happen in 2025 since there’s lots of moving parts and people to consider. Frankly, it isn’t the best time to either buy or sell a home. Our goal, therefore, is to change locales sometime next year, when I believe conditions will be more conducive to making a cross-country move. So, for now, our business will remain open and run as usual, even if it means having to fly back-and-forth to Dallas to see and be with my wife.

In the mean time, I thank you for your support and thought it made sense to share with you our present situation and how it may impact our business for the balance of the year. Its been a harrowing few weeks and hope we can finally see the light at the end of the tunnel when this crisis is behind us.

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Tales of Transparency: Tariffs Part Two

With the recent imposition of a 10% tariff on goods coming from China, it remains to be seen how both manufacturers and distributors decide to pass along these cost increases to the trade as well as the consumer in both the near- and long-term. In my opinion, most will take a wait and see attitude over the next few weeks to see if these tariffs will either be rolled back or remain in place based upon China’s reaction. Bear in mind, its entirely possible that not only will the tariffs remain in place but they could increase further should the Administration feel it necessary to raise the stakes even higher if China doesn’t get the subtle message or decides to retaliate in kind. During his presidential campaign, Trump had threatened a 60% tariff so now that he’s in office anything and everything is on the table. Presently, its not clear if certain manufacturers — among them Hobby Master, Panzerkampf and a few others — will be affected by the tariff and whether or not companies operating outside China will pick up sales by being located outside the PRC.

Its entirely possibly that the new Administration will up the stakes even further by placing an across-the-board tariff on every country that currently does business with the US, all in an effort to demonstrate to the world that we mean business when it comes to concessions. Over the weekend, both Canada and Mexico, our nearest neighbors and close allies, saw a 25% tariff imposed upon them, so it isn’t a stretch that even more allies will get the same treatment should Trump feel its within his rights to push the bounds even further.

So, as we start 2025, things aren’t looking especially great in the commercial space unless something substantial occurs by one or both parties. Geo-political events being what they are, it could be a situation where one side is waiting for the other to blink before they can formulate a response to the US initiatives. It isn’t a pretty scenario and one that will undoubtedly lead to a scarcity of product and higher prices for what does come into the country.

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Tales of Transparency: Meta

At this year’s Consumer Electronic Show (CES) held in Las Vegas last week, Meta (a.k.a. Facebook) indicated that they had struck an agreement with eBay to host their listings on its Facebook Marketplace. Here’s a brief synopsis of the announcement.

“Shares of eBay closed up 9% on Wednesday as Meta said it will allow some listings to show up on Facebook Marketplace, its popular platform connecting consumers for local item pickups and more.

EBay stock reached its highest level since November 2021.

The rollout will begin with a test in Germany, France and the United States, where buyers will be able to view listings directly on Marketplace and complete the rest of their transactions on eBay, Meta said in a release.

The partnership could provide a boost to eBay’s marketplace business, which has struggled to compete with e-commerce rivals like Amazon, Walmart, Temu and even Facebook’s own marketplace platform that lets users buy and sell items.

EBay has recently embraced niche categories like collectibles and luxury goods to try and keep buyers and sellers returning to its site. CEO Jamie Iannone told CNBC in an October interview that shoppers were coming to the site, known for its used and refurbished goods, as they sought out discounts amid a rocky macroeconomic environment.

Meta’s move is an attempt to appease the European Commission, the executive body of the European Union, after the regulator fined the company 797 million euros ($821 million) in November for tying its Marketplace product to the main Facebook app.”

Curiously its not clear when this arrangement will take effect, whether or not eBay will share part of its commission with Meta and which listings will be shown on Meta’s far-reaching platform. Thus far, we are awaiting information from both companies concerning further details that will undoubtedly impact our business. According to the announcement, a test phase will be introduced that will enable buyers from the US, Germany and France to be able to view and purchase our products, although its not clear if special overseas shipping rates will be integrated into the system. We are assuming that parcels bound for international destinations will first be sent to eBay and then on to the customer. Its highly doubtful that anything will be sent to Meta. Moreover, arbitration and returns will likely be handled by eBay should a problem develop and messaging between the parties will almost certainly be handled through eBay rather than have Meta get involved.

With the announcement, rumors began circulating online that Meta was interested in purchasing eBay outright as a means of keeping up with certain dominant players in the e-commerce sector. If so, this would have a dramatic impact on the reach and selling capabilities Facebook has long sought to bring to its platform. It would also create a viable revenue stream that made use of both Instagram and What’s App in increasing their overall appeal, reach and marketing power.

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