Tariffs, Tariffs Everywhere: What Do They Mean for Your Business?
There's a reason those little "Made in . . ." labels appear on so many products in our country. Importing is a very big business, especially from countries that have lower costs of living than ours. But the recent focus on improving domestic production in the U.S. has lead the government to reevaluate the low tariffs that have existed in the past.
How will these increased tariffs impact your business?
Here's a quick look to help you get started.
Supporters of tariffs argue that they support domestic businesses by leveling the playing field, while opponents argue that they stifle international trade. Whichever side of the fence you fall on, here's a quick look at the recent tariffs that have gone into effect this year:
Solar Panels: Solar panels have a declining-scale tariff over the next four years, from 30% this year to 15% in 2022. Though there are concerns about the impact on the growth of renewable energy, solar panels can use a great deal of energy to produce while being wasteful of resources, so the tariff may allow new technologies to emerge to produce more efficient solar cells.
Washing Machines: The growth of the foreign appliance market has had a strong impact on American manufacturers, resulting in this declining-scale tariff over the next three years from 20-16% on the first 1.2 million washers, a declining-scale tariff from 50-40% over the next three years and a matching tariff on parts following the first 50,000-90,000 units.
Steel and Aluminum: Trump's campaign promises to restore the Rust Belt's failing factories comes into play with this flat tariff of 25% of steel and 10% on aluminum imported into the US.
Goods from China: As China responded to tariffs added by the U.S. for stolen intellectual property by the communist state, a tit-for-tat exchange began that has resulted in tariffs on 800 products.
Whether your business is being impacted by the new tariffs or you're simply not quite sure how to adapt your company to other changes in government policy, our business professionals are ready to help. We can help you adapt your business plan and overall strategy to different policies that have come into play, allowing you to adapt effectively to these changes. Please feel free to contact AccountRely today to get started.