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.
The American Supply Association (ASA) and its Industrial Piping Division (IPD) is the national organization serving wholesaler-distributors and their suppliers in the industrial and mechanical pipe-valve-fitting industry. As a powerful alliance of channel partners, we provide a forum for your upstream trading partners to exchange critical information and address key issues.
In particular, ASA’s IPD members constantly check the pulse of the materials and commodities they proudly supply to you. ASA’s IPD members are knowledgeable industry leaders, and those who volunteer their service on the IPD Executive Council compile and prepare the IPD Commodity Reports. The Reports contain some of the most current and qualified market data and information available from the industry’s leading manufacturers and distributors about emerging trends and other price-influencing actions and events.
This information is an example of how ASA’s IPD manufacturer and distributor members are constantly looking ahead to ensure you have information and resources you need to be successful. Learn more at www.AdvanceYourAbility.com.