What is the new China Tariff?
On June 15, the White House announced a new 25% tariff on $50 billion worth of "goods from China that contain industrially significant technologies."
See full statement here: https://www.whitehouse.gov/briefings-statements/statement-president-regarding-trade-china/
Does the new tariff have an effect on me?
If your business does not import goods from China, then no! You are in the clear.
But if you do, make sure you look at the list of Chinese goods that the tariffs apply to. There will be two waves of tariffs. The first of the two goes into effect July 6, and will apply to 818 Chinese goods worth $34 billion.
Take a look at the full list of the first wave of goods to be taxed here: https://ustr.gov/sites/default/files/enforcement/301Investigations/List%201.pdf
The first wave applies to mostly industrial parts and products such as (but not limited to) aircraft and train parts, imaging and navigation equipment, scientific equipment, electrical components, etc.
The second wave does has no official implementation date yet, but it includes 284 goods and is worth $16 billion. See full list here: https://ustr.gov/sites/default/files/enforcement/301Investigations/List%202.pdf
Products taxed in the second wave apply to mostly industrial chemicals and plastics.
Are you ready for this change?
If your business frequently imports these types of products from China, make sure that your existing systems and business processes can support this change.
Several of our clients have reached out to us for to create a NetSuite customization that will allow them to protect their margins in light of this new tariff.
We've been able to help users set surcharges percentages to applicable products on an item by item basis to reduce the number of manual processes. It is also built to help them get a clear view of their new costs and profit margins.
Are you looking for something similar to get a better handle on these new taxes? Contact us for more information.