CEO of Halstead/Metroflor Weighs in On Tariffs
Norwalk, CT, May 10, 2019-Harlan Stone, CEO of Halstead/Metroflor, released the following statement about the Chinese tariff increase to 25%.
“With the swirling headlines, choppy stock markets, and social media activity, it can be difficult to make sense of what is going on in the USA-China Trade negotiations. But here are the simple facts as 8:00 a.m. Friday morning May 10, 2019 in the United States of America:
- High-level trade negotiations are expected to continue in Washington, DC today.
- The goal of these discussions has never changed: come to an agreement that allows for more open, fair, and increased trade between the world’s two largest economies.
- Negotiations require “clever tactics” and continuous “point-counter point” positions; this is exactly what has been happening since early 2018 and will continue until a final agreement is achieved.
- Imports of products from China on the so-called “List 3” (which included LVT and other consumer products) will continue to enter the USA today at a 10% additional tariff-the same as they did yesterday, and the same as they will on Monday.
- The official Federal Register Notice published this week is very clear-only goods that were exported from China after midnight last night (U.S. Eastern Standard Time) will be affected by any escalation of that tariff from 10% to 25%.
- The average transit by sea from China ports to U.S. ports is 35 days (+/- 3 days).
- This means there is a 5 to 6 week window for the negotiations to continue without any impact on U.S. consumers, businesses, or the overall economy. This is a good thing.
- Essentially all current “on water” shipments from China will be allowed to enter the USA at prevailing tariff rates, regardless of the arrival date.
- Twice previously the escalation to a 25% tariff on the List 3 items has been avoided, and now for third time the action to raise the tariff rate to 25% has been delayed.
10.Finally three thoughts:
* Things are not always what they seem to be;
* Confusion can be considered a tactical advantage in certain situations;
* Staying focused on the facts can be good for a person’s blood pressure.”