By now you’ve probably heard or read something about the heated taxation situation between the United States and China. Regardless of your political preference, this conflict is primed to have a big impact on consumers in both countries and the aftermarket audio industry is already feeling the pressure.
As consumers, there’s very little that can be done about this inevitability. As manufacturers, we do our very best to improve efficiencies as much as possible so that we can avoid having something like this affect our customers. In the end, this will ultimately lead to increased costs on both sides.
It’s estimated by the National Retail Federation that the initial tariffs on goods from China imported into the United States in 2018 will cost American consumers roughly $6 billion. In the same report, it also notes that the additional 25% tariff recently applied tacked on additional $4.6 billion to the cost of consumer goods that Americans purchase every day. Unfortunately, the most recent round of imported products that were in the crosshairs for these tariffs are critical components of the aftermarket audio industry and as such, many top manufacturers in the United States are now feeling the heat.
To date of writing this short post, around $16 billion worth of tariffs will have been imposed on imported goods with possibly more to come. That being said, we here at Retro are doing our very best to ensure that our customers don’t experience this burden by taking the necessary action and planning to prevent a trickle-down effect. In short, we’d just like to make the public aware that depending upon the outcome of the current international trade negotiations select products might be subject to the effects of these sanctions in the near future.
For additional information on the current climate please visit the following: https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/