SIA: Increase in Tariff will further impact Security Product Categories

IOT News

SIA-Increase-in-Tariff-will-further-impact-Security-Product-Categories SIA: Increase in Tariff will further impact Security Product CategoriesAs per recent reports, China announced a new retaliatory tariff on $60 billion worth of US goods. China’s decision follows the earlier announcement that Trump administration made last week on imposing higher tariffs on $200 billion in Chinese goods.

Earlier this month, on Wednesday, May 8th, 2019, the Office of the US Trade Representative (USTR), announced its decision to increase the rate of additional duty imposed since Sep. 2018 on Chinese goods from the current 10% to 25%. The decision to increase the duty levied was made effective on Friday, May 10th, 2019.

In what definitely seems to be a retaliatory attempt, China has hit back on Monday, May 13th, 2019, announcing the hike in tariffs on up to $60 billion of US imported goods. With this dilly-dallying stocks took a nosedive, plunging down to their lowest level in two months. China’s hike in tariff rates will be taking effect on Saturday, Jun. 1st 2019, with Beijing charging 25% tariff on approximately 5,000 items, ranging from food and consumer goods to chemicals and machinery.

Furthermore, beyond its May 10th effective tariffs, the Trump administration also announced its decision to proceed to impose a 25% tariff on the remaining goods that China exports to the US, which amounts to a rough estimate of $300 billion of Chinese products.

The Security Industry Association (SIA) in its earlier comment to USTR has identified 29 product categories on the list that impact the security industry. The list comprises of key security products that are widely imported such as alarm and access control components, cameras, and smoke detectors.

In its Thursday, May 9th, 2019 announcement, SIA alerted its members that they “should be aware of the tariff increases on these items imported from China.” Additionally, in its announcement, SIA also warned members about the possibility that the Trump administration may impose additional duties on all remaining products imported from China — up to $325 billion in additional goods — that are currently excluded from the tariffs subjection.

“Further, retaliatory measures by the Chinese government in response to these developments are likely and could include additional tariffs on US goods, tariffs on US services and various types of non-tariff trade barriers,” SIA stated.