4 days ago
- Business
- Los Angeles Times
This patented device creates bespoke underwater photos. Now it faces Trump's Brazil tariffs
In the heady circles where global economists and academics offer their opinions, President Trump's whopping 50% tariff on goods from Brazil will do only 'limited' harm to the economy of the South American giant.
In the terrestrial places where JR deSouza makes a living, the levies enacted last week hit a lot harder.
'It has caused me a lot of lost sleep,' said deSouza, whose company, Outex, makes underwater camera housings, manufactured in plants in Brazil and in Long Beach, San Fernando and Downey.
DeSouza is a married father of two who lives in La Cañada. He had a winning career in product management and marketing with companies like TiVo, Disney and DreamWorks Animation, before he founded Outex 15 years ago.
The 54-year-old grew up in Brazil and came to the U.S. in high school to pursue a swimming career, which led him to the University of Tennessee and the Brazilian Olympic team. On the Rose Bowl masters swim team in Pasadena, he's the amiable teammate who has a kind word for everyone, even the flounderers who swim in his wake.
In creating Outex, deSouza combined his passion for the water (he also surfs and snorkels) and photography, which he picked up from his father.
He told me his company has sold tens of thousands of Outex devices, mostly to professional photographers, but also to serious amateurs, who want to take pictures in and around the water. The devices can even be used with mobile phone cameras. They get strong ratings online for flexibility, durability and picture quality.
Then came Trump and his tariffs, which have thrown entrepreneurs worldwide into a dither. The charges against Brazilian goods are among the highest the president has imposed.
Trump generally asserts that his tariffs hit countries that 'looted' the U.S. with unfair trade practices. But America maintains a trade surplus with Brazil. The president levied the high tariffs, instead, because Brazil's former leader and his ally, Jair Bolsonaro, has been put on house arrest and accused of plotting a coup for attempt to overturn the last presidential election. (Sound familiar?) Trump calls the case against Bolsonaro a 'witch hunt.'
DeSouza doesn't want to get into those politics. He just wants to assure that his business weathers the tempest, knowing that Trump frequently has shifted tariffs, with little warning. The exact levy on Outex housings is hard to calculate, because of the company's complex net of supply and assembly across two nations.
The businessman said it's possible he could shift more of his operation to the U.S., but would take time and considerable planning.
'It's very difficult for businesses, especially ones selling directly to consumers, to absorb a 50% price increase overnight,' deSouza said. He's doing his best 'to absorb some of it with our manufacturing and assembly partners here in the United States and in Brazil,' but ultimately he will have to pass some of the cost on to customers.
'We may have to lay off some workers and cut growth expenses to preserve the business and navigate through it.'
He's feeling forgotten amid the global hubbub, but hoping someone in the government can help small business people like him. 'Big corporations can afford lobbyists and lawyers and, you know, people who are focused on gaming the system,' he said. 'Smaller businesses don't have the same resources. They are just trying to make a product and deliver value.'
DeSouza became an American citizen years ago. 'I want what is best for the United States and for small business,' he said, 'Right now, the ambiguity and complexity is wreaking havoc.'
Today's great photo is from Times photographer Christina House outside a Pasadena hotel where Sydney, a handsome but skittish dog, helps Eaton fire evacuees heal.
Jim Rainey, staff writerDiamy Wang, homepage internIzzy Nunes, audience internKevinisha Walker, multiplatform editorAndrew Campa, Sunday writerKarim Doumar, head of newsletters
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