As you may know, United States Trade Representative proposed a third round of tariffs, which includes furniture. General consensus among customs brokers and freight forwarders is that this round of tariffs will pass and become effective September 1, 2018. The proposed ad valorem duty is 10%, but recently there have been discussions to increase it to 25%. Below are the pricing implications for Florida Seating products:
- While the tariffs will apply to both wood and metal furniture, we DO NOT import any wood products from China. We make all of our wood furniture in our factories from 100% solid European Beech wood. Therefore pricing on Florida Seating wood products will remain the same.
- Pricing on most outdoor furniture (except cushions, Suncity and Elements tops) and indoor metal furniture will increase to the same magnitude as the tariff – if tariff is 10%, prices will increase by 10%; if tariff is 25%, prices will increase by 25%. Price increase will be effective as of the same date as the effective tariff date, currently expected to be September 1, 2018.
- If Customer places a PO (and pays deposit when applicable) prior to 9/1/18 AND items are available in stock as of the date of the PO, tariffs won’t apply even if delivery takes place after 9/1/18.