Like most manufacturers, the Roller Die team is closely watching the developments in negotiations with China and, in particular, the impacts of the steel and aluminum tariffs on both the negotiations and on businesses who use those imports as part of their products. As it seems likely that the trade war will continue, along with the existing and increased tariffs, businesses are starting to look for creative ways to mitigate the impacts.
The steel and aluminum tariffs, as well as other tariffs, were imposed by the Trump administration as a way to incentivize China to change their investment rules, their rules regarding transfer of intellectual property, and their subsidization of the tech sector as well as alleged currency manipulation. At the moment, China is not willing to come to the table to negotiate, claiming that they are unwilling to do so while the tariffs are in place. Both sides are holding strong to their positions currently and it may take a slump in the economy to move one player or the other. It does not look likely that there will be an early resolution to this issue.
Further, midterm elections are unlikely to impact tariffs. Historically, Democrats have taken an even harder-line stance on relationships with and trade with China, so a swing in the composition of the legislature is unlikely to impact the tariffs or the U.S. negotiation goals.
Of more concern for Roller Die’s clients is what all this means for your business. With a very indefinite timeline on the resolution of these issues and an administrative appeals process that is significantly backed up, many companies are now looking at ways they can address their specific problems and mitigate issues caused by the tariffs. Depending on your company, this may mean looking at alternative sources of raw materials, assembling offshore, delaying capital expenditures, or simply passing the costs on to consumers.
Whichever strategy you pursue, reach out to the experienced sales team at Roller Die + Forming to explore how we can help you source material, manufactured in Mexico, improve your logistics, or simply deliver your part with excellent customer service.