New Tariffs Now in Effect

According to the Nikkei Asian Review, an additional 15-percent tariff was imposed on 3,243 items, including many consumer goods such as clothing and watches, “prompting companies across a wide range of industries to consider shifting production to Southeast Asia and raising prices to cope.”

Copier/MFPs and printers are also now subject to higher tariffs. Kyocera President Hideo Tanimoto said on August 2nd that the company will respond by switching the output at its Chinese and Vietnamese plants.

The Nikkei Asian Review noted: “The Chinese factories currently make items for the American market, while the Vietnamese plants produce those for Europe. The goal is to swap them by the end of March.”

“We expect a limited effect on our earnings,” Kyocera’s Tanimoto said. However, the Nikkei Asian Review states that  “adjusting supply chains and other necessary changes could cost the company tens of millions of dollars.”

Ricoh Company has also shifted production of U.S.-bound products from China to Thailand, according to NHK World.

Ricoh officials say output in Thailand has increased by about 10 percent. The company still makes products for Japanese and European markets in China.

The United States also plans to raise tariffs on $250 billion of China-made products from 25 percent to 30 percent in October.

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