The ever-evolving tariff situation and trade wars initiated by our current President have been difficult to keep up with due to the erratic nature of their developments.  The changes in tariffs have a direct impact on Mechanical Power and our customers as many of our imported products have tariffs. Since Q4 of 2018, our imported products have had a 25% tariff applied to them.  Unfortunately, on August 23, 2019, the President raised the tariff to 30% which will take effect on our products starting on October 1, 2019.

In response to this unfortunate development, Mechanical Power is not raising the tariff surcharge to customers.  We will absorb this impact in hopes that a solution to the trade war between China and the U.S. is in sight.  On August 29, 2019, China announced they are holding off on imposing tariffs against U.S. imports.  We see this as an olive branch from China and since that time, rumors have emerged that low- and high-level meetings are to take place in the coming 30 to 45 days between China and the U.S.  The China Commerce Ministry stated that a meeting involving high level stakeholders from both sides will take place in October.  The United States Trade announced low level meetings that are to take place in September.

This information shows that meetings between China and the U.S. regarding the tariffs are imminent, and we hope things will get better before they get worse.  According to an expert in Beijing, China and the U.S. were said to be close to an interim deal on trade as of September 19, 2019.  Our hope is that this is an indication of a forthcoming reduction in tariffs.  We expect favorable trends with the tariffs soon as the economy slows and market volatility continues. President Trump will have to pivot on tariffs if he wants to be re-elected in 2020.

At Mechanical Power, we are paying close attention to the trade war and we will keep our customers apprised of meaningful updates.  We sincerely appreciate your cooperation in weathering this storm and we are hopeful to get back to business as usual as quickly as possible.

In the meantime, please don’t let the tariff situation discourage you from reaching out to Mechanical Power for your global product sourcing needs.  Our professionals will understand your specific needs and efficiently navigate between domestic and international manufacturers to find your exact parts and components, saving your company time and moneyContact Mechanical Power to learn more about how we can keep your global sourcing simplified.


Brent LaLonde

Brent has spent considerable time in global supply chain operations in both manufacturing and distribution environments with a strong background in global sourcing & procurement. He’s worked for companies renowned in operating systems, kaizen continuous improvement and strategic planning cadences.