I’m not an expert on tariffs but I do keep my ear to the ground to hear what is rumbling. A note that passed my desk pointed out that President Trump’s next proposed round of tariffs would, in fact, affect HTS code 73181600 – the code for “Nuts made of Iron or Steel”. That is correct, there could be a 25% tariff on hex nuts imported from China. Folks, that a lot of hex nuts! In fact, that might just be where a lot of all hex nuts you buy and sell are coming from.
This announcement was just made in the last few days. The Department of Commerce announced Section 301, which looks to impose a 25% tariff on some 1,300 HTS codes (import codes). According to what I read, Section 301 relates to intellectual property that the US Department of Commerce says Chinese companies have stolen from USA companies.
Section 301 is still in the draft stage and the government is seeking public comments before a determination is made in May. So, it is not a done deal yet. But be aware, if this goes through you could be looking at a 25% increase in your price on nuts made in China.
See the following link: https://www.federalregister.gov/documents/2018/04/06/2018-07119/notice-of-determination-and-request-for-public-comment-concerning-proposed-determination-of-action
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Of course, the larger argument concerns the US trade deficit with China. We can hone in on individual classes of items, but it won’t matter once this escalates and those hex nuts are lying on the bottom of the Pacific. Better to be focused, in this instance, on the bigger picture, because this could all go nuts without much more provocation from either side. The industry could start by making a better effort in not feeding China so much business. But I’ve been tooting that horn for so long my lips are split.