{"id":6822,"date":"2018-08-31T14:29:55","date_gmt":"2018-08-31T14:29:55","guid":{"rendered":"https:\/\/www.kele.com\/content\/?p=6822"},"modified":"2018-09-26T18:24:56","modified_gmt":"2018-09-26T18:24:56","slug":"kele-can-help-you-plan-for-tariff-impact","status":"publish","type":"post","link":"https:\/\/www.kele.com\/content\/blog\/kele-can-help-you-plan-for-tariff-impact","title":{"rendered":"Kele Can Help You Plan for Tariff Impact"},"content":{"rendered":"

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Update \u2014 September 28, 2018:\u00a0<\/strong><\/span>On Sept. 17, the Trump administration announced a new 10 percent tariff on an additional $200 billion of Chinese imports. The tariff became effective Sept. 24 and will increase to 25 percent on Jan. 1, 2019. The list of affected product types grew to nearly 6,000. Read more at the links below:<\/p>\n

United States Trade Representative announcement<\/a><\/p>\n

Final tariff list<\/a><\/p>\n

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August 31, 2018:<\/strong> The 25 percent tariff on Chinese imports could have far-reaching implications across the BAS industry. Enacted by the United States Trade Representative (USTR) in July and August, the tariff was imposed on $50 billion of products imported from China. The tariff may expand to an additional $200 billion of Chinese imports in the future.<\/p>\n

The list of product types subject to the 25 percent tariff grew in August to more than 1,000, including products in the manufacturing and construction industries. However, the full tariff-related dollar impact on a product depends on whether it is a finished good or a component. Finished goods will be hit with the highest tariff.<\/p>\n

Affected products can be identified via a Harmonized Tariff Code, and manufacturers have begun the process of confirming the country of origin of their related lines. How cost effects are being handled varies by manufacturer. Some are taking a \u201cwait-and-see\u201d approach while others are adjusting list prices and\/or adding a surcharge based on the tariff impact. List price increases and surcharge amounts also vary.<\/p>\n

What does this mean for BAS contractors and their customers?<\/strong><\/p>\n

Essentially, cost increases on numerous products for the duration of the tariff. While unknowns exist, many suppliers will begin or continue passing along tariff-driven costs over the coming months. This introduces the potential for mid-project material inflation and the inherent hassle of managing that with your customers.<\/p>\n

Kele can help you mobilize now!\u00a0Here\u2019s how:<\/strong><\/p>\n