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US: Packaging Suppliers hit hard by imposed tariffs on Chinese goods

On January 22 this year, the U.S. implemented a series of import tariffs on a variety of Chinese goods. Since then, the trade situation has escalated with retaliations against the imposed tariffs from either party and the number of imported items affected went from 18 to 10,000 products.

A volatile trade situation has emerged as a result. Last month, another round of tariffs were imposed by the United States. The tariffs on $200 billion worth of products come on top of the $50 billion worth already taxed earlier this year, meaning nearly half of all Chinese imports into the United States are facing levies.

The new tariffs, which went into effect on Sept. 24th, are currently 10% and will increase to 25% on Jan. 1, 2019.

Packaging Suppliers the likes of Koen Pack USA manufacture many of the floral and plant packaging items in China. Because of the levies that went into effect on Sept. 24, all items imported from Chinese factories are now affected with the 10% import duties, and will increase to 25% in January 2019.

The levies are applied to all new incoming goods arriving in the US ports, on or after Sept. 24 by the U.S. Government. As with Koen Pack, other companies will be sorry to inform customers to be left with no choice but to increase prices.

Trade efforts stalled
Cut flowers and ornamental plants are not on the list, save for some plant ingredients and seeds of herbaceous plants. However, the new tariffs have stalled any efforts to gain additional trade opportunities in China, CEO of the California Cut Flower Commission Kasey Cronquist remarked at AgAlert.

Office of the United States Trade Representative  - January 22, 2018 – Imposed Safeguard Tariffs

Office of the United States Trade Representative – September 2018 – Tariffs on $200 billion of Chinese Imports

Click here to view the final tariff list

 

Source: Koen Pack USA

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