YS Tech USA and CTfanman discuss the new cooling fan Tariffs.
I would have preferred to talk about this subject last month, but decided the notice re: CNY (Chinese New Year) and the last week to order and receive goods before the holiday was more pressing. Having said that, I hope this is not too much of a bummer just before the holidays, but I wanted to address the new TARIFF situation.
Everyone remembers the following infamous letter I sent out in September:
One of those classic .. Rock and a Hard Place situations … The letter was written early-on in the “Tariff Wars”, and the mention of the additional January increase (now) “MAY” not happen. That is some good news! Let’s hope the President is able to get more of the level playing field he is working for, and we will not see more Tariff increases.
You’ll recall the new Tariffs are primarily on FANS and although I mentioned heat sinks, we’ve not heard anything further on that product for now.
This may be too geekie for some, but aren’t you a little curious about some details of the HTS (Harmonized Tariff Schedule) codes? If you review the first (8414.59.6590) below you will notice the IMPORTS figure ($45+Mil) with no corresponding exports, that would appear how this commodity was chosen for additional Tariffs. Now, it’s unlikely there will be an uprising US fan manufacturer to help level the playing field. That is what manufacturers of other US goods need to do – out of our control. It seems to be a total-sum game.
The other HTS code (8414.59.1500) may be more familiar with most readers (cooling for microprocessors) – how all this ‘cooling stuff’ got started in the first place years ago! There again, the product flow is one way. Perhaps even this simple explanation is not all that helpful in alleviating the stress caused by those extra fees. No one likes cost increases, especially when entirely out of our control! Let’s hope the negotiations going on, even as I write this, are successful and shipment pricing returns to more normal levels in the new year.
OK, that’s enough of that serious stuff … Merry Christmas and Happy New Year to all!