Tariffs and Trade Wars
If you have been following the trade war with China, you will see that it has been taken to an entirely new level. There has been an increase in tariffs on $200 billion worth of Chinese goods to 25% from the previous 10% rate. That is a huge increase for imported products. This has been placed on many different products such as minerals, consumables, flowers, ivory and the list goes on. What is a tariff and what effect will it have on imported goods into the U.S.?
A tariff is a tax that is put on imports. Importers are required to pay tariffs once their shipment has cleared customs. Tariffs are paid directly to the U.S. government by the importing companies. There are actually two types of tariffs: A specific tariff is levied as a fixed fee based on the type of item and an ad-valorem tariff which is levied based on the item’s value, such as 10% of the value of the product.
Tariffs can protect domestic industries but when placing tariffs on imported products it can also drive up prices on parts, materials and products. This can result in increasing prices of products sold. Plumbtile keeps a watch on all new regarding imported products as we like to make sure that we provide not only the best quality kitchen and bathroom products but at the lowest prices.
There are some benefits to placing tariffs on imported products. The government will see increased revenue as imports enter into the domestic market. Domestic industries could also benefit from a reduction in competition. Since there are price inflations this can reduce the amount of companies that will import their products. As always Plumbtile will continue to keep our customers up to date on any information that will affect our products and prices. Plumbtile offers the most competitive pricing with the highest quality.