Concerned About Tariff’s and Impact to Power Transformers?
November 13, 2018
(Part 1 of 3)
Global tariffs can create uncertainty in pricing and supply for power transformers, affecting budgets and project timelines. The PowerVolt Group helps businesses navigate these challenges by providing reliable transformer sourcing, flexible supply chains, and local manufacturing options.
How PowerVolt Helps Mitigate Tariff Impacts:
- Local Manufacturing & Sourcing: Reduces exposure to international tariffs.
- Consistent Inventory & Lead Times: Maintains supply despite global fluctuations.
- Expert Guidance: Advises on tariff strategies and cost-effective solutions.
- Custom Solutions: Ensures the right transformer is available for your specific application.
Partnering with PowerVolt allows your business to maintain cost stability, reliable transformer supply, and uninterrupted operations even in the face of changing tariffs.
An Oct. 28 CNBC story2 by Lori Ann LaRocco explains the impact tariffs are having on transformers. “The effect of the first round of tariffs can be seen by looking inside the Chinese containers being exported to the U.S. According to Ocean Trade Database, the amount of traded goods included on the $34 billion tariff list dropped 21 percent in July from the year before. For example, the number of transformers imported in July 2018 was 60 percent less than imported in July 2017.”
The latest round of tariffs announced in June 2018 (section 301, list 3), will impact power transformers. The first installment will apply a 10 percent tariff on imported power transformers starting Sept. 24, 2018. The second installment on Jan. 1, 2019 includes an additional 15percent tariff on imported power transformers (a total of 25 percent as of Jan. 1, 2019).
Other Tariff Related Wabash Articles:
- Part 2 of 3 (How to Find the Best Transformer Partner to Mitigate Tariffs?)
- Part 3 of 3 (How the PowerVolt Group Can Help Eliminate Tariff Uncertainty.)
“China tariff effects started showing up in shipping data months ago,” Oct. 28, 2018, com (https://www.cnbc.com/2018/10/26/china-tariff-effects-started-showing-up-in-shipping-data-months-ago.html)