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Tariff increases

There is no question that the new tariffs on Chinese goods will affect us. It does, however bug me a bit when a vendor says that prices on chinese goods will go up by the same percentage that the tariff goes up. That means that they are adding their profit margin to the increase.

One one hand it is good business, on the other hand they are hitting us harder than necessary.

Below is a letter I received from a vendor that is an example of a endor working with their customers -

May 20th, 2019

Dear valued customer and Chintaly business partner,

As you are aware, the US government has announced that the current tariff of 10% is going to be increased to 25% on all merchandise being imported from China as of Friday May 10th 2019

In September 2018, when the initial 10% tariff went into effect, we thought, as many of you did, that it would be a temporary situation and was slated to possibly be amended as of Jan 1st 2019. Because of that, in order to help our customers, we decided to absorb the entire 10% tariff hoping it would be temporary.

Unfortunately January 1st came and went and we continued to absorb the 10% tariff, hoping the Government would reach a positive arrangement that would not affect our price or bottom line. At the end of this month, May 2019, it will be 9 months that we have been absorbing the entire 10% tariff.

As much as we do not want to proceed with any tariff increase, we are unable to absorb 25% tariff. We also have not had a price increase to compensate for the 10% Tariff.

With all that being said, as of June 1st 2019, we will be forced to impose a tariff surcharge on all of our merchandise. As business partners, we will absorb half of the 25% tariff, or 12.5%. We must stress that this will be a tariff surcharge and NOT a price increase. If the tariff issue is resolved before the June 1st date or even after that date, the tariff of 12.5% will be eliminated.

Thank you for your business and your continued partnership. We remain hopeful that we can continue as business partners and maintain our great working relationship.

Re: Tariff increases

I agree completely, and on top of that , not everything you buy is from China. It will hurt their Biz , depending on how they handle it.

Re: Tariff increases

The amusing part of all of this, is those that claim this will only effect parts from China. Can anyone realistically say this is so? Can anyone possibly be that naive?


Re: Tariff increases

Yep, just try to find American made fasteners...

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