The U.S. Government has raised tariffs from 10% to 25% on approximately $200 billion of Chinese imports, effective today, 5/10/2019. Reports indicate there may be increased tariffs on additional imports as well.
Trade negotiations with China are ongoing. As a manufacturing community, we all must remain hopeful that trade negotiations will move in a positive direction.
MSCdirect.com is helping customers navigate the impact of tariffs by placing a 'T' icon on all tariffed items (icon below). Customers can then use the 'Alternate Products' feature to help locate a non-tariffed item. There are many alternates for items with tariffs available from MSC. Experts are also available right here, on Forums, for help finding the right tooling.
In a recent article on Better MRO, we discussed How to Future Proof Your Business From Tariffs, available here.
We want to know your thoughts on the latest in the trade war.
When China - or anyone else - has a tariff imposed, many of us in the industry know who pays: we do. The tax on Chinese goods is paid by the BUYER, like virtually every other tax. So the cost of many materials is going up 25% (or 15%). Is your business able to absord this cost increase? Mine isn't. I have no choice to pass this cost on to the customer. Who has a finite amount of money to spend. So they buy less. How are you dealing with the increased cost? And what of the unpredicatibilty of costs? Which items and materials are going up? How closely to you know or watch which products and materals are domestic vs. imported?