Building Brand Awareness in 2025
Increasing brand awareness is a top goal for B2B companies in 2025. But what is a brand? And how can you evolve it to meet your changing company...
4 min read
Meghan Maloney Wed, May 15, 2019
Talk of a full-scale trade war between the US and China may sound dramatic, but the latest tariff applied to Chinese goods will have a major impact on the costs of materials coming to the US. The full list of affected goods, available here, includes fresh food and dry goods, consumer goods like hats and handbags, as well as a large list of manufacturing materials such as glass, aluminum, gold, electrical parts, and machinery.
Manufacturers, distributors, and B2B or B2C sellers of optical lenses, cameras, LCD screens, photographic film or other imaging equipment will be particularly affected by this tariff increase: the list of affected goods includes over 40 product categories related to these industries.
Other industries that may be affected by this increase include:
While upsetting, this tariff increase has been brewing for some time.The original Trump-era tariff increases began to take effect in the summer of 2018. The full list of products is officially split into 3 parts, titled as List 1, List 2, and List 3. Lists 1 and 2 were subject to a 25% tariff as of July 6, 2018 and August 23, 2018, respectively.
The tariffs on List 3 goods became effective in September of 2018 at a 10% rate, and were originally scheduled to increase to 25% as of January 2019. This January date was postponed to March 2, 2019 as China continued its attempts to renegotiate the nature and breadth of the new tariff structure.
On Sunday, May 5, President Trump tweeted that the 10% rate would increase to 25% “shortly”. On May 9, 2019, the Office of the US Trade Representative issued a Notice of Modification formally confirming the President’s statement that, “the rate of duty will increase to 25% with respect to the products…covered by the September 2018 action.” Based on conversations we’ve had with a legal team, this means the products outlined in List 3 were impacted. (Source)
Learn more about the direct implications on companies with products in List 3 by in our Q&A session with attorney, Casey E. Holder of Baker Hostetler.
If your business is set to feel the pinch of this cost increase, it might feel like one tweet just kicked the legs out from under your business model. Ambiguity about national economic policy, the nature of cost increases, and even the availability of certain materials all contribute to a feeling of unease when reacting to these situations.
Your immediate response to news like this is critical. Your customers rely on you as a source of truth about your product. You’ll need to craft a communication strategy and get in touch early to advise on the anticipated impact to customers. A price increase is never fun to hear about, but effective and honest communication allows you to maintain a trusting relationship with your buyers.
Now that you’ve handled the immediate crisis, it’s time to start planning for next time. Unplanned exigencies will always happen, so take the current situation as a lesson and apply it towards the future.
Events like the tariff increase are never easy to manage, but creating and maintaining a contingency plan allows you to remain focused on supporting your customers through the challenge, instead of scrambling to save face. Utilize the strategies and tools provided here to help you cultivate and protect your customer relationships now and in years to come.
If you're ready to learn more about the legal implications of this change, check out our Q&A session with attorney, Casey E. Holder of Baker Hostetler.
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