China Tariffs: Section 301 Import Tariffs

26th Sep 2018

China Tariffs: Section 301 Import Tariffs September 2018 Update

On July 6, as mandated by the U.S. Trade Representative under Section 301, a 25% tariff was imposed on a subset of electronic components manufactured in China and imported into the United States. Hybrid Automotive made the decision to delay billing customers for these new tariffs until the details were complete and the impact could be better understood – since July 6, Hybrid Automotive has absorbed all Section 301-related tariffs incurred. On Monday of this week a new mandate was issued imposing a 10% tariff on an additional set of electronic components manufactured in China and imported into the United States, which will grow to 25% on January 1, 2019.

HYBRID AUTOMOTIVE WILL ADJUST PRICES FOR SECTION 301 TARIFFS ON OCTOBER 1, 2018

Starting with orders made on October 1st, Hybrid Automotive will adjust prices for Section 301 tariff charges on products that have measurable foreign content. Our approach is one geared towards adjusting prices by an amount that properly represents the increases made by our suppliers and equitably passing these charges along while respecting the fact that our profit margin is included in your price.

On Monday of this week a new mandate was issued imposing a 10% tariff on an additional set of electronic components manufactured in China and imported into the United States. This announcement was made on September 17, 2018 where the tariff rate was set at 10% for affected items, rising to 25% on January 1, 2019. We have yet to receive any formal notification from our suppliers on these newly affected items and therefore will not be passing along charges until we receive those updates.