Mixed signals continue to dominate the news on United States and China trade tariffs, not only impacting global investment markets already rattled by uncertainty, but Chinese suppliers and manufacturers of goods sold in the United States.
The latest development, which appears to be positive news, is a statement from US President Donald Trump on August 26, 2019 that, “China called our trade people last night and said, ‘let’s get back to the table,’ so we’ll be getting back to the table, and I think they want to do something.” Meanwhile, China’s top trade negotiator, Vice Premier Liu, has reportedly said, the US/China trade war is “against the interest of China, the US, and the entire world.”
This comes on the heals of the United States announcing last week that it would impose an additional $300 billion in tariffs on Chinese imports beginning September 1, 2019, while starting October 1, existing US tariffs on about $250 billion in Chinese goods would increase from 25 to 30 percent. (The United States previously levied a 10 percent tariff on some $200 billion worth of Chinese goods on September 1, 2018, which went up to 25% in May 2019, followed by retaliation from China with a 25% tariff on more than 500 US products, initially worth around $34 billion.)
In late August, China announced some $75 billion in additional tariffs on US goods to go into effect September 1, 2019 and December 15, 2019. Ranging from five to 25 percent, the tariffs apply to more than 5,000 items, mainly in the areas of agricultural, farming, automotive, chip makers and electronics, industrial, and chemical products. A wide range of plastics and fabrics are also affected.
So far, total US tariffs on Chinese goods are about $550 billion, while the Chinese tariffs on US goods are around $185 billion.
While the long-term impact of the tariffs is unknown, in the short-term American companies that sell products manufactured in China or that utilize goods manufactured in China may be forced to raise prices. This impacts companies of all types and sizes, from the Walmart, Coca-Cola, and Apples of the world, to mom-and-pop retailers.
We’re Working with Our Customers in Mind
As your premiere source for environmentally-friendly reusable tote bags, insulated cooler bags, canvas tote bags, and other related products—many of which are manufactured in China for our large, custom orders—Belvedere Exclusive invites you to contact us about how the ongoing US/China trade war may impact pricing on our products and what we’re doing to protect our customers.
Belvedere customers should also know that tariffs are not the only thing affecting pricing and availability of goods from China. The Chinese New Year arrives early in 2020, which means factories there will close around January 15, 2020 and stay closed through the end of February. Due to these closures, the earliest Belvedere can expect to receive goods is mid- to late-April 2020, with the last shipping containers of our products destined for the United States leaving factories in China sometime in early January 2020, before the New Year celebration commences.
If you are planning a large custom order, we strongly encourage you get it in to us by August 31, 2019, with art approved no later than October 31. This will ensure your order enters production soon enough so that it is completed and included with our anticipated January 2020 shipment from China to the USA.
- Belvedere is pleased to offer extended terms to our customers in lieu of this unique situation.
- Alternately, customers may opt to have bags produced domestically, which is typical for 250 to 3,000 pieces.
We’ll work with you to mitigate the impact of market and pricing uncertainties due to the tariff war as well as the early celebration of the Chinese New Year.
If you have any questions, contact us 800–905-1549 or by email email@example.com.