U.S. Imposes 10 Percent Tariff on Some Chinese Fenestration Products
September 18th, 2018 by Jordan ScottChinese materials used in the fenestration industry will be subject to a 10 percent tariff effective September 24, 2018. The Trump Administration announced a finalized list of $200 billion worth of tariffs on Chinese goods Monday. Starting January 1, 2019, the new tariffs will increase to 25 percent.
The tariff list includes:
- Stainless steel, doors, windows and their frames, and thresholds for doors
- Iron or steel (o/than stainless), doors, windows and their frames, and thresholds for door
- Wooden windows, French windows and their frames
- French doors of wood
- Doors of wood, other than French doors
- Leaded glass windows & the like; multicellular or foam glass in blocks, panels, plates, shells or similar forms
- French doors of wood
- Doors of wood, other than French doors
Base metal door closers suitable for buildings, base metal automatic door closers and base metal parts are also affected. Base metal, other than iron, steel, aluminum or zinc, mountings and fittings suitable for buildings are also included in the tariffs.
China retaliated to the latest trade escalation with $60 billion in tariffs on U.S. goods including small aircraft, computers and textiles at a 5-percent rate and chemicals, meat, wheat and wine at a 10-percent rate. These tariffs will also go into effect September 24, 2018.
The President commented that he would consider subjecting an additional $267 billion worth of Chinese goods to tariffs if China retaliated.
American Architectural Manufacturers Association executive vice president Janice Yglesias responded to the recent tariff developments.
“It is critical that government officials involved in developing this resolution recognize the potentially far-reaching consequences of the outcome,” she said. “Tariffs on aluminum and steel imports or exports could impact all fenestration industry companies to varying degrees since these materials are used in numerous components as well as manufacturing machinery. The complexity of the issues in play likely warrant a multi-faceted comprehensive strategy in order to implement an effective solution.”
The Window and Door Manufacturers Association (WDMA) also spoke out against the tariffs.
“WDMA is very disappointed with the Trump Administration’s decision to impose a tariff on the list of products from China,” said WDMA president and CEO Michael O’Brien. “Window, door and skylight manufacturers utilize many of the products on the list in the manufacturing process. These additional tariffs will likely lead to price increases for the residential and commercial construction markets and continue the threat of a trade war with China. WDMA urges the Trump Administration to reconsider this onerous action.”
Randy Noel, chairman of the National Association of Home Builders (NAHB) issued a statement on the tariffs, warning that their effects could further raise housing prices.
“President Trump’s decision to impose 10 percent tariffs on $200 billion worth of Chinese imports, including $10 billion of goods used by the residential construction sector, could have major ramifications for the housing industry. With housing costs on the rise, this action translates into a tax increase on housing that will rise even more significantly on Jan. 1 when the tariff rate jumps to 25 percent.” Said Noel. “Further, this tax increase is coming on top of the current 20 percent tariffs on softwood lumber imports from Canada. The lumber tariffs have already added thousands of dollars to the price of a typical single-family home.”
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