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China and US Trade War, Tit-for-Tat Reciprocity, Hurt Printer Supplies?

Posted Date 04/05/18
The current tit-for-tat exchange of tariffs between the United States and China gives the impression the world’s two biggest economies are headed down the road towards a trade war, which would have produced damaging economic outcomes. 
 
This escalation would be damaging for the US and Chinese economies since global companies, such as Apple, invest in both countries. This would affect not only US businesses but also American consumers. Retailers such as Walmart import goods from China, so prices would go up and living standards would be squeezed. And since US goods are sold worldwide, if they are reliant on parts from China, consumers here in the UK and in the rest of the world would also be affected. The same applies to Chinese consumers and producers, particularly since about half of Chinese exports are made by enterprises with foreign investors. (Source: https://www.theguardian.com/commentisfree/2018/apr/05/us-china-trade-war-supply-chains-consumers
 
The companies from remanufacturing industry may wonder how this likely escalating trade war will affect my business and sales revenue, when exporting printer consumables to US market?  It has been hard already with all these IP related lawsuits, and now comes to the possibly increased Tariffs, to the printer and copier associated products?  
 
According to Actionable Intelligence, a list of the printing related parts and accessories are listed, but no consumables are included at this point  (http://www.action-intell.com/2018/04/05/will-u-s-impose-tariff-on-printer-consumables-made-in-china/).  
 
What will be the likelihood of remanufactured products being imposed on 25% tariffs?   Based on the chart below from Economist: printers importing into US market has 2.8 bn, a pretty good portion of the share in this bracket.  Analysts at Goldman Sachs, a financial institution, estimate that of the merchandise proposed for tariffs, solely round 20% of America’s imports in 2017 got here from China, the share is greater for LEDs, televisions, and printers and copiers.
 
Economist states: "Such methods have worked before. In 2003, when the European Union threatened to put tariffs on American products, including oranges, in retaliation for George W. Bush’s tariffs on European steel, Mr Bush yielded. (Florida, a crucial swing state, is home to many orange-growers.) Mr Trump’s pronouncements do not suggest he is ready to sue for peace. Nor does he seem aware of the risks of failure."
 
 
 
We have to wait and see how this situation will develop, and how much effect will be imposed upon the printers and copiers. 
 
 

 

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