This Week in Imaging: Will China’s $70B Offer Stop U.S. Tariffs on Printers, Copiers, and Supplies?
According to both The New York Times and The Wall Street Journal, China has offered to purchase nearly $70 billion of energy, agricultural and manufactured products from the United States in the first year of a deal that would require the Trump administration to suspend tariffs on Chinese products – according to a person familiar with talks currently being held between U.S. Commerce Secretary Wilbur Ross and Chinese economic advisers. The problem with the offer, however, is said to be that it “would go only partway toward President Trump’s initial demand that China reduce its $375.2 billion trade surplus with the United States by $200 billion annually,” according to The Times.
Meanwhile, the Imaging Supplies Coaliton (ISC), which is made up of major industry players such as Canon Inc. and HP Inc. dedicated to protecting their consumables’ revenue stream, has petitioned the government to exempt printer supplies imported from China from the government’s proposed 25-percent tariff. Not only would it do nothing to protect OEMS from the deluge of third-party supplies imported from China, it would impose significant costs on consumers and businesses. The ISC cites a recent study by Trade Partnership Worldwide prepared for the Consumer Technology Association and the National Retail Federation that estimates that the tariffs would cause U.S. consumers to pay $529 million more than they now pay for ink and toner cartridges, and that consumers will cut back on purchases of ink and cartridges by 7.8 percent, “which will severely undermine companies based in the United States.” For the office printer/MFP industry, which is anything but booming – with revenues now established as flat or slightly increasing – that could cause extremely significant impact.
According to The Times, the White House has said tariffs will go into effect shortly after a list of affected products is published by June 15. According to The Times, the White House has said tariffs will go into effect shortly after a list of affected products is published by June 15 – and as we reported previously, they would also apply to printers and copiers, and their parts and servicing. Hopefully, though, negotiations will continue, and the tariffs will be averted.
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