Suppliers Continue to Navigate Impacts of Trade Tariffs
Over the last few months, there has been more trade tariffs proposed and implemented. For the manufacturing industry, we’ve seen numerous articles discussing the impact this will have on material costs, production costs, benefits, drawbacks, and everything in between. While much is still unknown, it is becoming more evident that the imposed tariffs are having an impact on some suppliers.
The concern around how to navigate the tariffs without applying an additional cost to customers continues to be top of mind for manufacturers, our suppliers and Lakeland as your trusted distributor. Whether our suppliers are able to absorb additional costs, add the tariff charge as a separate line item or increase prices is still largely unknown and unique to each supplier. However, we have seen some suppliers begin to take action now that the impacts of these tariffs are being realized. Please note that tariff negotiations are ongoing, with new information coming to fruition on a regular basis.
As your local distributor, Lakeland is committed to our customers and delivering the high-quality products and services you rely on at reasonable costs, with local application assistance. For more information regarding the trade tariffs, take a look at the short recap and resources below.
Snapshot of the Imposed July 6 and September 24 Trade Tariffs
The US Trade Representative provided notice of an initial action in the Section 301 imposing a 25% tariff on products manufactured in China and imported to the US with an annual trade value of approximately $34 billion. This went into effect on July 6, 2018 and included many products related to the industrial and manufacturing industry including steel, aluminum, PCBs and many more. Steel and aluminum were among the hot button items in the manufacturing industry, with some benefited while others regressed initially, the impact is still being realized.
Since, there have been a number of additional tariffs placed in the ongoing trade negotiations between the US and China. In September, a press release by the US Trade Representative was released stating, “The USTR today released a list of approximately $200 billion worth of Chinese imports that will be subject to additional tariffs. In accordance with the direction of President Trump, the additional tariffs will be effective starting September 24, 2018, and initially will be in the amount of 10 percent. Starting January 1, 2019, the level of the additional tariffs will increase to 25 percent.”
This list is also inclusive of many items regularly used within our industry and the manufacturing of products including machinery components, industrial parts, cast iron parts, printed circuit assemblies, electrical parts of machinery and many more. Many manufacturing companies are concerned and testified regarding their concerns over what this will do for the market, job creation, and quality of products.
While our suppliers are still developing action plans around these tariffs, Lakeland continues to focus on supplying our customers with brands they can trust at reasonable prices with exceptional customer service. To get in touch with your local rep, email email@example.com.