Thursday, August 9, 2018
The federal government announced a second round of tariffs that will be imposed upon 279 Chinese imports, which will go into effect on August 23rd. These tariffs affect chemicals and components, motors, thermometers, and other materials that are used in the production of numerous products made and sold by those of us in the pet care community.
This most recent round of duties is not the only one impacting our trade with China. It follows a first round of 818 products, including a wide range of manufacturing equipment and machinery.
On top of these tariffs, a proposed supplemental $200 billion trade action against China by the Office of the United States Trade Representative would impose a 25% ad valorem (increased from 10% as originally proposed) duty on a wide range of imports, including live ornamental fish, live carp, and many ingredients used in the production of pet foods, treats, and products. Written comments regarding this action are being accepted through August 17th, and a public hearing will take place from August 20-23 in Washington.
These actions – current and proposed – threaten the entire pet care community. Whether you are a retailer, a manufacturer, or a distributor, you will be affected by these tariffs. Pet owners will also feel their effects in the form of increasing prices and decreasing availability.
To discuss these tariffs, their effects on the various sectors of the pet industry, and ways in which we can all work together to try to address them, PIJAC will be hosting a conference call this Thursday, August 9th, at 3:30 PM. We are inviting representatives from other organizations that are working on this issue as well, including the Pet Food Institute, the Pet industry Distributors Association, the American Pet Products Association, and the World Pet Association. We will also provide an update on actions by the National Retail Federation and the National Association of Manufacturers.
I hope you’ll join us this Thursday to help us determine how we can best move forward in addressing this critical issue facing the entire pet care community.