May 10 2019
Amid stalled trade negotiations between the United States and China, the tariff rate on Chinese imports increased on May 10, rising from 10.0% to 25.0%. The original tariffs on 5,745 products went into effect on September 24, 2018. According to the latest release from the United States Trade Representative, the new 25.0% rate will be applied to products shipped after May 10 or those entering the United States after June 1. Five NAICS sub-sectors account for 62.0% of the total value covered by tariffs.
At the industry level, the most affected industries will be the Circuit Board and Electronic Component Manufacturing industry in the US (IBISWorld 33441b), followed by domestic Household Furniture Manufacturing (33712). While the specific industries exposed to this higher cost applied to imports, the industries further along the supply chain are also likely to feel run-on effects of price changes. The negotiations between the United States and China are still ongoing, so the length of time these tariffs will be applied remains to be seen. Regardless, the changes are likely to influence industry operators’ decision processes.