For the last forty-five days I've been closely monitoring the impeding tariffs that are to take effect on July 6th of 2018.
About two months ago the United States had 1,333 lines (products) that are imported from China. That list was recently reduced to 818 lines. One of those lines is for "copier parts and copier accessories". For those that are not living under a rock, we know that most of Japanese copier companies have manufacturing facilities in China. If you're not sure just check out the serial plate on one your existing copiers and it will tell you the country of origin.
Below is a recent clip from a NY Times article:
It seems the only other is industry Publication that's posting anything is Action Intel (last post date was April 3rd). Action Intel did some research into one of the sub headings of the classification and believes that the tariffs will also include most imaging consumables. I urge you to read this article Will U.S. Impose Tariffs on Printer Consumables Made in China? This was published on April 3rd, but much has happened since then.
I paid a visit to The United States Trade Representative site and there you can see the most recent June press release. Below is a cut from that release and link.
USTR has determined to impose an additional duty of 25 percent on these 818 product lines after having sought and received views from the public and advice from the appropriate trade advisory committees. Customs and Border Protection will begin to collect the additional duties on July 6, 2018.
In this press release you can also access the current list of 818 products that is set to start on July 6th.
More Tariffs ?
After the release of the 818 lines of products, China exercised their power and added additional items and tariffs to goods that the US imports to China. Keep in mind that the original list of 1,333 lines included not only "copier parts and copier accessories", however, it also included "copy machines".
If the trade war escalates I would tend to think that the list of products will be increased to the original 1,333 lines of products.
Other than some chats from existing Print4Pay Hotel members, it seems that most are not aware of the impeding tariffs. A recent call to DSM on the east coast asking about price increases was met with something like, "haven't heard anything about this and this is the first time I heard about it". Since that call it's been silent. I also offered up a call to a P4P'er on the west coast and asked him to pepper his DSM with a few questions. The response from the west coast DSM was, "we don't act of threats". It's obvious that this DSM has no clue of what's about to happen.
Can the US cancel this before July 6th? Of course they can, however, it seems like the US is in this for the long haul. I'm a betting guy and I would bet that the tariffs will go into effect. I guess the next question will be about how long they could last and of additional products are added.
A few days ago I was on the phone with another Prin4Pay Hotel member and we chatted about what manufacturers would be hit harder with the impending tariffs. We agreed that they were three or four high profile manufacturers that would have some issues. Not going to mention names, this blog is more about educating all on what will happen on July 6th.
I have questions as well:
Will the cost of maintenance & supply agreements increase?
What about MPS programs?
Will all of my copier accessories increase also?
Will the Japanese manufacturers ship more products from Japan?
When the tariffs go into effect, how soon could we see increases?