Updated: Aug 28, 2019
IHS Blog Date: 08/27/2019
The U.S. had not imposed high tariffs on trading partners since the early 1930s. Because of the tariffs during that era, economists have estimated that overall world trade declined about 66% between 1929 and 1934. In the post World War II period, President Donald Trump was one of a few presidential candidates to speak about trade inequities and tariffs when he vowed to take a tough line against international trading partners, especially China, to help American blue-collar workers displaced by what he described as unfair trade practices.
The first tariffs imposed by the Trump Administration were on solar panels and washing machines. Robert Lighthizer, the U.S. Trade Representative announced that, after consulting with the Trade Policy Committee and the U.S. International Trade Commission, president Trump decided that, “increased foreign imports of washers and solar cells and modules are a substantial cause of serious injury to domestic manufacturers.” The first 1.2 million imported washing machines would be taxed at 20% and the subsequently imported washers would be taxed at 50% in the following 2 years. For imported solar panel components, they would now be taxed at 30% with the rate declining over four years.
Today, we are experiencing tariff increases across multiple avenues and it's beginning to affect your budget. As a result, Infinity Hospitality Sourcing has taken the necessary steps to ensure your business doesn't suffer a tariff increase with casegood purchases, lighting, mirrors & accessories, outdoor furniture, custom products, wood products, medical devices, heavy machinery and electronic devices. IHS is here to the rescue and went to battle on your behalf!
Impact on your business
This looming trade war has many worried due to the price increases on American products. While the effects may be limited for now, if the U.S. and China, the world's largest economies, commit to an all-out trade war, we could be looking at a complete shake-up of the global economy.
How can IHS help you avoid having a price increase?
Companies affected by tariffs in the manufacturing, wholesale and retail segments essentially have four options: they can absorb the extra expense, increase prices, move production to another country, or hire Infinity Hospitality Sourcing for future purchases. We have taken all the necessary steps to help you avoid having a price increase. With this being said, IHS is a OEM & OED fully horizontal manufacturer. For more than 35 years we have been in the OEM chain of supply, making us experts in cutting production costs, assembly, finishing, processing, packaging, certifications, transportation and quality inspections. Thus, allowing a 25% decrease in price compared to our competitors. Lastly, it is important to mention we have assembly lines in Vietnam, Indonesia, Mexico and Canada.This allows us to export components from China directly to those locations in order to complete the assembly without any delays and avoiding additional tariffs.
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