Let the Tariff Hearings Commence
One full week of testimonies regarding the 4th tranche of tariff considerations officially began earlier this week on June 17, 2019, and are expected to continue for seven days until June 25, 2019.
The hearings grant applicable businesses the opportunity to voice any pertinent issues and/or opinions concerning the potential 25% tariff increase on $300 billion in Chinese imports.
Some notable companies and supply chain associations listed on the docket include: iRobot, New Balance, Virginia Port Authority, and Port of New Orleans. These are in addition to the other 300+ affected businesses testifying at the hearings this week.
Other prominent corporations voiced their written thoughts in a comprehensive letter to the administration, raising issues of competitiveness on a global scale and underlying structural issues warranting preemptive attention. Among this list of businesses were Levi Strauss, PetSmart, Port of Los Angeles, and Ikea.
Port representatives are eagerly attending the hearings based on the importation of large gantry cranes used to move containers off of ships and on to land. No cranes are manufactured in the United States and these large ocean-side hoists are no exception. As a matter of fact, ZPMC, located in China, is the only gantry crane manufacturer in the world.
“A 25 percent duty would immediately increase Port costs by $10,350,000 for a current gantry crane order.” [Glenn Wiltshire, Acting CEO of Port Everglades – gave his testimony to USTR on Monday, June 17, 2019]
The Federal Register released the government’s plans for the additional tariff increase over a month ago and since then the post has accumulated over 1,500 individual comments.
Pending the hearings this week, and following a mandatory rebuttal period, the earliest the 4th list of tariffs could take effect is July 2, 2019.
If you have any questions or comments based on your current supply chain or imports from China, please feel free to reach out to our specialists HERE.