And what that means for us.
…and for you.
Recently, the U.S. President announced an increase in tariffs on goods imported to the U.S. from China, from 10% to 25%. While you may think this trade war and the associated tariffs are only affecting our neighbours to the South… you may be in for a surprise.
As you know, we import most of our products from U.S. manufacturers and even if the finished product is made in the U.S., many of them source materials and components from Chinese factories. Our U.S. vendors are being hit hard by these tariffs and simply cannot absorb the extra costs. As a result, they’re passing them along in the form of price increases or material surcharges.
We are very thankful that all of our U.S. Vendors have been working proactively to reduce the impact of the tariffs by making changes to their supply chain wherever necessary. We will be doing our best to identify specific products that are impacted and will work with our customers to mitigate the effects of the increased tariffs.
The good news is that the increase isn’t taking effect immediately.
The link below is the updated communication from the USTR on May 9th that pushed the effective date of the tariff increase to June 1, 2019. See below:
“Under this implementing modification, and as specified in the Annex to this notice, products of China that are covered by the September 2018 action that were exported prior to May 10, 2019, are not subject to the additional duty of 25 percent as long as such products are entered into the United States prior to June 1, 2019. Such products remain subject to the additional duty of 10 percent for a transitional period of time before June 1, 2019. The covered products of China that are entered into the United States on or after June 1, 2019, are subject to the 25 percent rate of additional duty.”