Kyocera Warns Dealers Tariffs May Result in Price Increases

TonerNews recently published a letter obtained from Print4PayHotel indicating that Kyocera copier/MFPs and printers made in China will be subject to a 15-percent U.S. tariff, which may result in price increases.

The letter is written by Edward Bialecki, senior vice president of sales for Kyocera America Document Solutions.

The September 3rd letter explains that on September 1st, a 15-percent U.S. tariff on Chinese-made products went into effect. The new tariff, along with the tariffs that went into effect in July 2018, now effectively cover all Kyocera products manufactured in China.

While the 2018 tariffs applied mainly to Kyocera copier/MFP maintenance kits, the new September tariffs now cover Kyocera toner, MFPs, printers, and accessories.

The letter notes that while Kyocera has done its “best to absorb the additional costs … the cumulative nature of these new tariffs will affect our cost of goods in the future.”

Kyocera’s Bialecki explained that while its U.S. warehouses can fulfill all  orders for September, there is not enough inventory to cover orders for the month of October and onward. That means that  all inventory Kyocera imports from its manufacturing facility in China from and after September will be subject to the 15-percent U.S. tariffs.

While Kyocera “will try to absorb as much of these new costs as we can,” Bialecki stated that there is the possibility of product price increase.

Production Shift to Vietnam

In August, the Nikkei Asian ReviewA new U.S. 15-percent tariff on a remaining $300 billion of Chinese imports went into effect earlier this month, with the new tariff imposed not just on Kyocera copier/MFPs and printers made in China, but on other vendors’ equipment made in China. reported that Kyocera is relocating production of some of its copier/MFPs designed for the U.S. market from China to Vietnam in order to avoid U.S. tariffs.

Previously, Kyocera had shipped copier/MFPs that it made in Vietnam to Europe. According to the Nikkei Asian Review, the cost of the shift could cost “billions of (Japanese) yen,” with 1 billion yen equaling about U.S. $9.2 million.

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