Tarriffs are starting to take a bite out of your profits
September 27, 2018 at 12:40 pm #18095
On January 22 this year, import tariffs on a variety of Chinese goods were implemented to safeguard the domestic U.S. industry.
Since then, the trade situation has escalated with retaliations against the imposed tariffs from either party and the number of imported items affected went from 18 to 10,000 products.
A volatile trade situation has emerged as a result of this.
Last month, another round of tariffs were imposed by the United States.
The tariffs on $200 billion worth of products comes on top of the $50 billion worth already taxed earlier this year, meaning “nearly half of all Chinese imports into the United States are facing levies.
The new tariffs, which went into effect on Sept. 24th, currently 10% and will increase to 25% on Jan. 1, 2019.
Implications for our industry and clients
Packaging Suppliers manufacture many of the floral and plant packaging items in China.
Because of the levies that went into effect on Sept. 24, all items imported from Chinese factories are now affected with the 10% import duties, and will increase to 25% in January 2019.
The levies are applied to all new incoming goods arriving in the US ports, on or after Sept. 24 by the U.S. Government. Unfortunately, we have no choice but to increase the prices for all customer orders arriving in the US on or after Sept. 24. Your account manager will inform you which orders and how they are affected as soon as possible.
The levies will not be applied to current Koenpack USA inventory as to keep the impact for our clients to a minimum.
It is however, a matter of time, before we sell out of our US inventory and would need to incorporate the new duties in our prices.
We recommend you to evaluate your needs and place your orders from our stock now.
Koen Pack will continue to inform you about new developments that may and/or will impact you and our industry partners.
Please contact us if you have any questions.
Koen Pack USA
• Office of the United States Trade Representative – January 22, 2018 – Imposed Safeguard Tariffs
• Office of the United States Trade Representative – September 2018 – Tariffs on $200 billion of Chinese Imports
• Click here to view the final tariff list
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