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Re: Up=Coming China Tariffs on Copiers parts & accessories

Art Post ·
These are two listing that I found on ustr.gov site: 8443.99.20 Parts of printer units of subheading 8443.32.10 specified in additional U.S. note 2 to this chapter 8443.99.45 Parts and accessories of copying machines; nesoi Subheading 8443.99.20 following parts of printer units of subheading 8443.32.10: (a) Control or command assemblies, incorporating more than one of the following: printed circuit assembly, hard or flexible (floppy) disk drive, keyboard, user interface; (b) Light source...
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Re: Up=Coming China Tariffs on Copiers parts & accessories

Art Post ·
really surprised there's no chatter about this
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Re: Up=Coming China Tariffs on Copiers parts & accessories

Jason H ·
I have heard from some of the secondary aftermarket suppliers wanting people to stock up before the tariffs take effect. Seems they are using it like any other bad news piece and trying to gain business now. I also wonder how this will affect the Japanese manufacturers.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
Responding to this question could immediately dissolve into a political debate. One fact is clear and that is that tariffs are essentially taxes that become Federal Gov't general revenue that can be used anyway the Gov't desires such as fund its massive deficit. Whatever money the Trump Administration gave away to its citizens in its tax cuts of 2017 it is now going to claw back with higher taxes disguised as tariffs.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
More than a few copier/ printers are manufactured in Thailand and the Philippines due to low labor costs. I do not know but I think these products tend to be more low end A4 and printer products. I think most A3 product is made in China. I can only speak for Toshiba but I know the majority of North American toner is made in North Dakota. As I am from Canada, I am hoping with fingers crossed that this very likely US tariff war with China will not effect us.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Art Post ·
" Whatever money the Trump Administration gave away to its citizens in its tax cuts of 2017 it is now going to claw back with higher taxes disguised as tariffs. " When one door closes another door opens. Many US companies can benefit from the higher tariffs placed on goods from China. In fact I spoke to one of those companies last Thursday. I disagree that the tax cuts are going to claw their way back with higher taxes disguised as tariffs. In the end, what Trump wants is fair trade practice...
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

George KRebs ·
Thank you for sharing the blog, Art. I must admit to not putting two and two together. I appreciate your thoughts. George Krebs Shore Business Solutions
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Art Post ·
George You are welcome!
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
Do you agree that a new 25% tariff on copier/ printer products imported from China is a consumption tax on US businesses and consumers?
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
In a hint at what is to soon happen with tariffs on copiers/ printers from China headed to the USA, Harley Davidson Motorcycles announced today that it would shift some production headed for Europe to other global manufacturing facilities to avoid paying tariffs estimated at up to $2,200.00 per bike. It could take nine to 18 months to make this change. It also said that it would not increase prices to European dealers and would take a hit to profitability for the remainder of this year at...
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Old Glory ·
"Whatever money the Trump Administration gave away to its citizens in its tax cuts of 2017 it is now going to claw back with higher taxes disguised as tariffs." Pretty much the only way to impact trade is to attack industries previously uneffected by imbalances. For instance, if the Canadians are charging a 270% tarrif on USA Dairy products, you can't resolve the problem using USA dairy. The only option is to offset using a previously non-effected industry, say Canadian Lumber. Obviously,...
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
Canada charges a 270% tariff because the US has a massive over supply of milk production. If US dairy product was to enter Canada without tariffs it would destroy our perfectly working dairy industry. Why should the USA be allowed to destroy our milk industry so as to partially solve a problem created within the USA? Besides, how do you think Canada maintains its "free" single payer health care system. It is by charging high taxes on all consumer purchases. I do not think that anybody thinks...
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Old Glory ·
"in hopes that these ill conceived trade wars will soon pass." Considered "ill conceived" by those adversely effected. I'm sure ending slavery was considered "ill conceived" by those adversely effected. Some corrections just have to run their course which may be what you meant by "will soon pass".
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
I suspect that you are retired from the copier industry and do not have to earn commissions each month to support your family. As an active sales rep, I do not have the luxury of hoping that things will run their course when I have budgets and quotas to meet each month. The people who are going to be adversely effected will be US copier sales reps with a higher cost of goods.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Old Glory ·
What about the term "Free Trade" do you not understand? You argue the advantages of lower lumber prices for Americans while disputing the value of lower dairy prices for Canadians. Free trade suggests that the market should decide what is best for the consumer. Free trade would also suggest that your exorbantly high taxes really shouldn't be a factor. We should probably leave the health care debate out of the equation. I for one would rather have what we have than what the Canadians have,...
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Old Glory ·
Nope...not retired and I do have to live from the commissions I earn from personal sales. I just don't believe that everything has to revolve around what is best for me. That being said, I am under the assumption that all copier manufacturers will be effected pretty much equally so I don't personally expect to be adversely effected.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
I am glad to hear that you are working in the copier industry so that I know that you have "skin in the game". There are very many players in the copier/ printer industry each with their own strengths/ weaknesses when faced with a trade war. Each player will have a different tolerance for how much money they want to loose to maintain market share. I definitely would not expect a uniform response. Multi line dealers will have more options to select from than single line dealers and brand...
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Old Glory ·
All very good points. I'm guessing larger players might have more manufacturing site options. However, if their A3 are manufactured in say US and Korea but their A4 are largely China, there could be discrepency even within a single manufacturers ptoduct line. Another manufacturer could have the reverse.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Art Post ·
as of July 6th, there is no tariff on copy machines. Just copier parts and accessories.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
Are you sure? 84433960 ...........Copying machines https://assets.documentcloud.o...e-Representative.pdf
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Art Post ·
this is the old list that was published on April 3rd. I included the new list in a link on the blog
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
Whew! Lets hope the list continues to exclude copy machines.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Art Post ·
agreed, however there may be another round after July 6th, Hoping NOT!
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Art Post ·
Duties on Chinese goods started at 12:01 a.m. Friday in Washington, just after midday in China. Another $16 billion of goods could follow in two weeks, Trump earlier told reporters, before suggesting the final total could eventually reach $550 billion, a figure that exceeds all of U.S. goods imports from China in 2017. https://www.msn.com/en-us/mone...DxQ8?ocid=spartanntp
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Re: Up=Coming China Tariffs on Copiers parts & accessories

Jason H ·
Well today is the day. I still haven't heard one thing from any of our manufacturers about this....
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Re: Up=Coming China Tariffs on Copiers parts & accessories

Art Post ·
same here, I guess they will start their nonsense once USA stocks have been depleted. I just heard of a Toshiba dealer that won school business based on .0018 for black and .02 for color. hahaha!
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Re: Up=Coming China Tariffs on Copiers parts & accessories

Jason H ·
I'll never for the life of me understand why someone would take that business.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
The Trump Administration today announced plans for a new round of $200 Billion worth of tariffs against China. https://www.cnn.com/2018/07/10...ffs-trump/index.html Copy machines were on the original list but but were taken off leaving parts and consumables subject to a 10% tariff. It seems most suppliers have not taken actions to increase their prices. On the new list which could go in effect sometime after Aug 30th are: 8443.39.20 Electrostatic photocopying apparatus, operating by...
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Art Post ·
It seems the prospects of tariffs going away anytime soon are fading. Eventually the cost of most goods in the copier industry are going to increase because of President Trump. SSG I'm okay with this! This may help in the long run because more clients may opt for something off lease, or even release their existing devices. In both cases I'll probably make more than selling new. You keep calling it a TAX, it's not a tax it's a tariff. When I go to the store and pay for an item, a tariff is...
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
You can call it whatever you want tariff/ tax but if your cost of goods increases by up to 10% this fall solely due to actions by the Trump Administration we will see if you feel the same by Jan 2019. You seem a bit naive in thinking that a tariff is not a tax. I am sure Ricoh will not share you opinion on selling less new equipment in favor of used gear.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Art Post ·
Trump is doing the right thing. As far as Ricoh is concerned, I couldn't care less of their opinion. It's all about putting food on the table for our families.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Old Glory ·
I, for one, don't care much what Ricoh thinks about my selling options. Tariffs also have a way of redirecting business decisions. China may sease to be a viable place for manufacturing. No manufacturer has 100% of their maunfacturing being done in China. No matter what, the effect of any tariffs will be watered down by whatever manufacturing that is being done elsewhere. I would really love to see something that tells what % of manufacturing is being done in China broken down by...
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
"Tariffs have a way of redirecting business" Tesla announced yesterday plans to build a new car factory in Shanghai, China in part to escape potential US tariffs on auto parts and battery supplies. https://www.nytimes.com/aponli...-as-china-tesla.html I can only guess that it would take years and much capital and energy to start or relocate a new copier factory outside of China. The Philippines is currently an important manufacturing hub for A4 printers and MFPs due to low labor costs. Most...
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
With no debate, the US Senate unanimously passed a bill that would cut or eliminate tariffs on toasters, chemicals and roughly 1,660 other items made outside the United States. Nearly half of those items are produced in China, according to a Reuters analysis of government records. One can only hope that copy/ print devices and their parts and consumables have had their tariffs eliminated. Since there are no manufactures of copiers/ printers on US soil, I do not know from whom the proposed...
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Art Post ·
SSG I checked here and there is nothing new at least about the recent passing of the Senate bill. https://ustr.gov/about-us/poli...ffice/press-releases I believe that Trump would still have to sign the bill and there is nothing about the House of Representatives either. It doesn't look good
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
I read past the "bill" description too fast. A bill is not law, it is, I think, just an expression of unanimous opinion by the Senate. Somewhere in the news this week, I read that Kyocera intends to increase production of A3 copiers in China by expanding a current factory. I am sure all copier manufacturers plan 10+ years into the foreseeable future and cannot worry about politicians who could come and go every four years.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Art Post ·
Would be nice if they could put some mfg plants in north america
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
The Trump Administration announced today what they call a second tranche of tariffs against goods manufactured in China subject to 25% effective Aug 23. I think the copier/ printer industry once again escaped a direct hit. "8443.99.40 Parts of photocopying apparatus of subheading 8443.39.20 specified in additional U.S. note 4 to this chapter"
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
China retaliated this AM by placing a matching 25% tariff on $16B of US goods. We will see if the US escalates the trade war again putting copiers/printers manufactured in China imported into the USA back at risk for a 3rd time.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
President Trump announced today, effective Sept 24 2018, a 10% tariff on a broad list of $200 B worth of Chinese goods. https://ustr.gov/about-us/poli...inalizes-tariffs-200 On this final list are all forms of copy devices. No mention of printers. No mention of toner. Unless China makes serious trade concessions to the USA, without retaliatory tariffs of its own on USA made goods sold in China, the 10% tariff will rise to 25% on Jan 01 2019. These devices are on the final tariff list,...
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Art Post ·
SSG Thanx for keeping this thread up to date! Kudos The economy is doing so well here in the US that I don't think many will care. I will use this to my advantage to get clients to move now. Now, I hope they do care! Art
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
I can imagine your "spin" to customers already. There is certainly a big sales hammer to close deals by Dec 31 2018. Probably some manufacturers "stuffed" their warehouses with product in anticipation of this tariff. Probably by Feb March 2019, if things go completely sideways, prices have to rise as inventory in the USA is depleted and new product is introduced.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

Art Post ·
Yup, it's a pretty BIG Hammer! I heard a radio report that the US trade debt rose significantly in July. I'm thinking what you stated is that "many of the manufacturers have stuffed thier warehouses". That's probably why we haven't seen anything to date with increases.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

SalesServiceGuy ·
China retaliated to the new US $200 B worth of tariffs with $60 B worth of new 10% tariffs on USA made goods sold in China. This move is in defiance of President Trump's threat to raise the tariff on Chinese goods to 25% on Jan 01 2019 if China retaliated.
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Re: Copier Parts & Accessories China Tariff Starts in 9 Working Days

TML ·
Thanks SSG and Art for keeping us up to speed on what others may not!
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Re: HP should Buy Xerox

SalesServiceGuy ·
China announced that they intend to place gov't employee/ observers into the Top 100 private tech companies in Hangzhou province of China with the stated goal of fostering a better business environment. China to place government officials in 100 companies including Alibaba The list of companies has not been published. NineStar Corporation of China which owns Lexmark is headquartered in a different province. NineStar has been described as the 4th largest tech company in China. Despite...
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Re: HP should Buy Xerox

SalesServiceGuy ·
I am deeply concerned about the race to the bottom with A4 product. A4 product certainly gets better everyday and some salespeople say it is just as good as A3...maybe true... except for your commissions. If you like Kraft dinner or Ramen noodles, downgrade your customers from A3 to A4. Let us not forget one of the largest A4 players out there is Lexmark. Lexmark is a 100% Chinese owned company called NineStar based in Guangdong, China. If you cheer MAGA, you cannot cheer Lexmark. God knows...
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Re: HP should Buy Xerox

Ray Stasiezcko ·
Appreciate the comments. However, your arguments regarding A4 vs. A3 pertain to what’s good for you. Industries which are going through disruption or when an industry’s particular product or its services become less valuable to those once dependent on them. The disease of Product-Centric thinking will infect those with a stubbornness to modify. It is not up to those who sell a product or service to determine its value. Its value is determined by those who buy the product or service.
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Re: HP should Buy Xerox

SalesServiceGuy ·
In 2016, Apex Technologies (now NineStar Corporation) purchased Lexmark at a 17% premium above its share price. In the background, the Chinese gov't had purchased a 5% stake in Apex (at that time a relatively small and unknown maker of 3rd party toner and inkjet cartridges). In fact, Lexmark sued Apex for for at least 15 patent violations. Via what is known as the IC Fund, the Chinese gov't is supporting its technology companies with the goal of of advancing China's, "Made in China 2025", a...
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Re: HP should Buy Xerox

SalesServiceGuy ·
It goes way beyond phones with Huawei. Huawei is attempting to dominate the global telecom market for next generation, super high speed, 5G networks. The reason why the Chinese gov't is flipping out over the extradition issues with Meng, CFO Huawei is because she is considered to be a key technology Princess in China with deep family ties to the Chinese gov't. The Meng extradition issue is exposing China's "Made in China 2025" plan to replace the USA and other countries in select dominant...
 
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