Tariffs: Impact & Advice
TARIFFS: And how they will affect you.
How the tariffs may affect your buying power in the coming year.
The tariffs are currently at 10% on some products coming from China. Many of our suppliers are NOT charging the additional 10% on those products for the rest of the year. However, unless the tariffs are removed, the tariffs will increase to 25% at the beginning of 2019. Additional tariffs are currently being considered on the remaining products coming into the US from China. So, yes, we do expect the tariffs to increase costs up to 25% on affected products beginning January 1, 2019.
We've been following reports on the tariffs for some time. A recent article indicated that the majority of suppliers in attendance at a recent industry event said they anticipate the increases to be more likely between 11-20% higher than this year's prices, meaning suppliers may absorb some of the tariff costs.
We are hearing that some suppliers will not be printing catalogs at all this year due to the uncertainty in pricing while others may print catalogs without pricing at all. Suppliers are also floating the idea that pricing may fluctuate throughout the year, which is not customary. So, remember in the new year to verify pricing before purchasing.
Remember that tariffs will and are affecting more items than just promotional products. They affect products you use every day in your homes as well. Additional talks between the US and China are planned for November. There is a chance that tariffs could be reduced or removed at that time, although it seems that most analysts do not see a clear path to that happening. More or steeper tariffs could be levied, as well.
How can we combat higher prices? Moller Promotional Products can work with you to provide items that fit within your budget. We also have technology that allows us to search prices on products across our industry. We can recommend products from suppliers that aren't passing on as much of the tariff's costs as others, thus allowing us to provide the lowest cost we can on the product you want from a reliable supplier. And, remember, the majority of our suppliers are not raising prices for the rest of this year, so, if you are able to purchase before the end of 2018, we encourage you to do so. We will continue to keep you updated as we learn more about the future of tariffs and how they will affect promotional items.