Back in June US President Donald Trump announced plans to put a 10 per cent tariff on a host imported goods from China. On Friday, a 25 per cent tariff on roughly $US34 billion worth of Chinese imports started.
While the tariff affects a range of goods from furniture to aircraft parts, the personal care industry has also been hit. The tax levied on these imported goods means that prices are going to need to increase for businesses to cover the cost, or they'll need to start sourcing product elsewhere.
In an email obtained by Bloomberg, Walmart spokesman Randy Hargrove said that the retail giant is asking suppliers if they have have facilities outside of China, and if not, whether they would consider investing in some to broaden their sourcing ability:
“We are closely monitoring the tariff discussions and are actively working on mitigation strategies, particularly in light of potentially escalating duties. One of those mitigation strategies is to understand what our suppliers are doing and what their plans and alternatives are.”
Lipstick, eye makeup, powders, shampoo and other haircare products all fall under the new rules; however, not all hope is lost. Six days of public hearings on the proposed duties of up to 25 percent will start on Monday in Washington so that retailers and businesses can have their say on Trump’s trade war with China.
Currently we haven’t been affected by the decision, but if you’re perusing US e-tailers your shopping might be about to get a whole lot more expensive.
