Chinese and US Trade War
Chinese and US Trade War; and the Tariffs you can expect to hear about in 2019.
This blog is about Donald Trump’s tariffs on billions of dollars of imported Chinese products and components which will impact and affect our business in 2019. It will change the landscape and Whitestone Branding is prepared and tackling it head on.
It is our duty to make sure you aware of what is expected to come. In our effort to do so, we’ve created a small FAQ on the issue, which we are delighted to share.
What is a tariff?
A tax or duty to be paid on a particular class of imports or exports.
What items are being affected?
Roughly 32 items have been affected as of today. Some of those items include but are not limited to:
Wool, cotton, denim apparel
Dog accessories including leashes
Bamboo and wood products
Items with marble, granite, cork
Technology and accessories
Certain drinkware including stainless steel
Is there an official list?
No there is no official list.
How much are prices increasing?
Price increase will vary and its not certain yet what the numbers are exactly, but we are expecting price increases to be in the range of 10% and 25%,
When will it end?
There is no clear end in sight, however all of this could prove to be temporary and that’s what we hope for. The unfortunate thing is that it doesn’t seem like either China or USA are backing down.
Will this help Domestic Manufacturing?
This is absolutely an opportunity for Domestic Manufacturers. Tariffs will help close the price gap between the US and China and those domestic suppliers well positioned will certainly benefit. China will still remain the power hub for promotional product manufacturing globally. We anticipate there will be good PR around buying American and this would offer a more stable price compared to China’s currently. We believe people will be pleased to discover the wide range of specialty products available made in the Usa.
Who else is this affecting?
This is an issue effecting everyone. It will affect consumer products as well, not just branded merchandise.
What will Whitestone do differently?
Whitestone will mitigate the price increases with creativity and solutions which help drive the bottom line results. We will strengthen our already deep American Made manufacturing roots. There will be many great alternatives to consider for each opportunity and we’re going to keep you up to date and informed.
Timeline of events
The U.S. Trade Representative investigates whether steel/aluminum imports pose a threat to national security.
The U.S. begins a formal investigation into certain policies and practices of the Chinese government tied to technology transfer and intellectual property.
President Trump issues a 30% tariff on solar imports after U.S. manufacturers petition for relief.
U.S. imposes tariffs on imported steel and aluminum from all nations, including China. In response to U.S. action on steel and aluminum, China places tariffs on $3 billion of U.S. goods.
Joint talks in Washington lead to the U.S. agreeing to hold off on tariffs, as China says it will significantly increase purchases on goods made in the U.S.
After disagreements about previous deals, the U.S. announces tariffs on $50 billion in imports from China. Trump threatens more tariffs if China retaliates. China does. Trump announces the U.S. will put tariffs on another $200 billion of Chinese exports.
Trump threatens to increase the proposed tariff on $200 billion of Chinese imports to 25%, up from 10%. China unveils a list of $60 billion worth of U.S. imports it plans to apply tariffs on if U.S. follows through on threats.
Effective September 24, U.S. announced a 10% tariff on $200 billion of Chinese exports until the end of 2018. Tariffs will rise to 25% afterward.