China Tariffs are hurting competitors, helping GWR gain market share in the U.S.
The United States has been implementing significant changes to its trade policy, specifically with China. First it was a tariff on a number of goods imported from China that accounted for around $50 billion. Earlier this summer the United States announced an additional round of tariff hikes on imports from China. Yesterday President Trump announced new tariffs on $200 billion of additional Chinese goods, with the import tax rising to 10% next week, and 25% by near end. HS Tariff Cod 8708.21.00 – safety seat belts – is included in this list of affected Chinese goods.
This is good news for GWR Safety Systems. Because our competitors source most of their product offerings from China and Asia, the increase from 2.5% to 25% will be a direct hit to their bottom line, and as a result they are raising prices. Because GWR is not dependent on China for it’s supply chain, we are unaffected and we are not raising our prices. In fact we continue to work to lower prices for many of our customers. We welcome the new customers that have come to us as a result of these price increases, and with our continued growth we continue to gain efficiencies of scale that help keep our prices low and better service our customers.
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