Valves report: August 2018
By far the most concerning issue involves the third round of proposed tariffs affecting $200 billion worth of Chinese products. If implemented, an additional 10% customs duty (possibly being increased to 25%) would be applied to a wide range of common (plumbing, HVAC and industrial) valve types and components. Dozens of HTS codes are involved. Hearings were scheduled for Aug. 20- 23 and a decision is expected in September 2018. If enacted, these new tariffs could be applied to goods arriving at U.S. ports as early as October 2018.
A second round of increases in the 5–6% range hit the market in the early summer. Those are being implemented currently. Further general increases are not predicted at this point. However, concerns and reactions to the tariff increases are beginning to hit the market. Currently the increases are on check valves only and increases have been announced. There are many more valve types and products associated with our industry included in the tariff codes currently under review by the Office of the United States Trade Representative (USTR). Increases in those tariffs will lead to another round of increases.
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