There have been tariffs issued that affect our industry that you should know about. The US Government has imposed tariffs on about 40-50 percent of everything being imported to the USA, across all business types, from China to the United States.
Tariffs went into effect in September of 2018 and are approx. 10% in addition to the normal taxes. They vary by product but are often around 4%.
Not just that, the tariffs that are currently in place have been announced to be going up to 25% by January 1st. We aren’t going to know if this actually takes place until that day or just a few days before.
Here is a helpful video from hardwareresources.com that explains some of the products they offer that are being affected:
Detailed Information by Brand and Vertical
Tariff Effects on HR, TK, Atlas, Du Verre, & Vesta
These products are now tariffed at 10% and are planned to go to 25% on January 1st:
- Corbels, posts and other decorative wood
- Screws and various other functional hardware items
- LED lighting, mainly branded Task Illuma
- Bath Hardware
- Some cabinet and closet organizers
- Some decorative hardware pieces
- E.g., Glass and crystal
- E.g., Escutcheons
On the other hand, these are the products NOT covered by the current tariffs.
- Most Top Knobs, Atlas, Du Verre, Vesta, Jeffrey Alexander, and Elements cabinet knobs and pulls
- Drawer Slides
- Various functional hardware products
- Some cabinet organizers
- US – made products
- Drawer boxes
- Cabinet doors
- LED lighting, mainly branded Task Sempria
The main messages you can get from all of this information are:
- The cost increases to HR are significant for products that are tariffed. We will absorb some of those costs and some will be passed to customers, starting on January 1st.
- We are aiming to be fair and transparent. We are not aiming to make money on these tariffs.
- The situation is still uncertain. Tariffs may be reduced or even go away. They may go up or be expanded to more products. We will react accordingly. Unfortunately, we need to be prepared for a rocky year in pricing.
Thank you to hardwareresources.com for the informational video explaining these new tariffs and their effects on our products.
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