Surtax changes between the US and China

Why are there changes?

Essentially, it began as Donald Trump’s way of punishing China for abusing American intellectual-property rights. However, what he thought would teach them a lesson has turned into a trade standoff, with both sides threatening higher tariffs and various restraints.

“Trump believes that the gulf between how much China exports to the United States and how much the United States exports to China reflects unfair trade practices, which he has vowed to address through penalties on imports and a range of other measures.”
If you want an in-depth breakdown of the current situation between the US and China read this informative article from the Washington Post.

Message from Ennis Fabrics

Ennis Fabrics’ Vice President of Sales and Marketing, Kirk Reiniger, has addressed the possible surtax changes between the US and China and what it means for you, our customer.

“As a supplier, we are watching all available sources very closely to understand the potential impacts to our costs and impacts to our supply chain.  We are doing everything possible to ensure that we have the most accurate information available to make appropriate decisions on our vendor structure, our supply chain, and our price lists.

As of now, there are 3 lists of products (HS codes) that contain items affected by the new surtax.  Each list has hundreds (if not thousands) of affected products.  List 1 is already in effect and List 2 is due to be effective Aug 23rd.  List 3 implementation date is still uncertain.

As these new “surtaxes” are implemented by the US government, we need to understand and manage our available inventory and what products are in process in our supply chain.  These “surtaxes” are ranging from 10 to 25%.

This will result in our need to adjust our pricing accordingly to offset the surtax impact.  We are doing everything we can in a short window to minimize the impact on you, our customer.  This includes some advance purchasing to receive new inventories prior to the surtaxes taking effect, reviewing our current vendor structure and balancing the news daily with respect to the political posturing between China and the USA.

We will do our best to communicate any changes to pricing in advance, but due to the fluid nature of this current situation, this may be difficult to do.

Thank you for your understanding in this unusual time and we will do everything we can to ensure that we continue to add value to you and your customers.

Kirk Reiniger
Vice President Sales & Marketing”

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