PPB September 2018

L ikemost U.S. businesses, promotional products companies are wrestling with how to respond to and position themselves during the escalating rounds of tariffs on Chinese imports. These tariffs are a growing concern, as successive rounds will levy increasing rates and encompass more product categories relevant to industry companies. Earlier this year PPAI joined with the National Retail Federation and 64 other organizations representing U.S. retailers, manufacturers, farmers, agribusinesses, technology companies and other industries to submit comments to U.S. Trade Representative (USTR) Robert Lighthizer on the administration’s proposed tariffs on Chinese imports. The correspondence expressed concern that tariffs are the wrong approach and will harmU.S. companies, workers and consumers. In August the USTR announced a third round of goods targeted for tariffs under the Section 301 investigation which was scheduled to take effect August 23 and levies a 25 percent tariff on approximately $16 billion in imports. A number of product categories sold in the promotional products industry were added to this list, including handbags, luggage, headgear and LEDs, as well as components such as machinery parts and a wide variety of fabrics. China’s Ministry of Commerce responded, announcing tariffs on approximately $16 billion worth of imported goods from the U.S., which was also scheduled to go into effect August 23. Lighthizer’s The Escalating Trade War: What’s At Stake Suppliers and distributors react to the mounting tariffs on Chinese goods. by James Khattak 80 | SEPTEMBER 2018 | THINK