Following China’s reaction to the news that $34 billion in Chinese goods would be subject to the US administration’s proposed 10% import tariff, President Trump appears to have upped the ante, submitting a new list of over 6,000 items worth $200 billion, including television components and TV and digital cameras.
In a blog entry, Display Supply Chain Consultants wrote, “Because of the steep declines in LCD TV panel prices in the last twelve months, a 10% tariff would merely slow down the price declines for TVs in the 2018 holiday season”.
If all of this goes according to the Trump administration’s plans, the proposed 10% penalty would be added to any existing import tariff imposed on Chinese imports. That means TVs imported from China would be subject to a total tariff of 13.9%.
DSCC also said, “Brands like Samsung that import from countries other than China will benefit from the lower panel prices and not have to pay the tariff penalty, and the tariff is likely to encourage major brands to shift production to Mexico”.
You can view the publication’s blog entry in full here.
Analyst Comment
Smartphones have, so far, been excluded from the tariff. (BR)
