Increase in Chinese Trade Costs

“Made in China” is the most printed phrase of all U.S. imports. According to the U.S. Bureau of Industry and Security, China has remained the top importer to the U.S., accounting for 16.5% of all imports as of 2022. With an election year looming, it is important to see where major candidates stand on trade with our largest trade partner and how it will affect imports from China.

In his first term, former President Trump imposed a 25% tariff on 200 billion Chinese products. Along with dominating the news cycle and being considered by many as a not so successful trade war, Trump’s focus on Chinese trade has only increased. According to Yahoo Finance, “Trump was discussing with his advisers the potential of imposing tariffs of 60% on Chinese imports. On Sunday, Feb. 4, Trump confirmed this on Fox’s “Sunday Morning Futures,” saying, “We have to do it” and then embellishing even further, stating, “Maybe it’s going to be more than that.” This is in addition to the blanket 10% tariffs that Trump wants to impose on all imports.”

A 60% increase on Chinese goods could see business costs almost double. Chinese slew drives are mainly known for their competitive price point and not for reliability. Another Trump presidency may double business costs for companies buying solely Chinese drives.

On the other side of the aisle, President Biden strongly criticized Trump’s Chinese tariffs while running for office in 2020. Now four years into his presidency, he has yet to repeal any of them. Taking it a step further, Biden is adding to the Chinese tariffs. According to ABC News, President Biden views his tactic as a, “”smart approach” to target goods such as electric vehicles, solar cells, steel, aluminum and certain medical equipment.” With President Biden, and now democratic nominee Vice President Harris having no issue with these forceful tactics, also being aggressive towards Chinese trading, especially in areas of construction and development, it appears Chinese products including slew drives may lose their most attractive feature.

With both parties increasing their grip on Chinese products, firms relying on Chinese made slew drives may want to reevaluate alternative products. IMO offers high quality German engineered slew drives at competitive prices. IMO slew drives out perform all Chinese drives. With a potential looming Chinese trade war, companies may want to consider diversifying product sourcing.