As I’m sure you are aware, last Friday the United States raised its existing tariffs on $200B of Chinese manufactured goods from 10% to 25%. The United States Trade Representative also stated that tariffs will be raised on all goods imported from China.
These additional tariffs result in a substantial costing increase across our entire product line. When the 10% tariff was implemented last year, we did not push through a price increase as did most of our competitors. This round will now be the second price increase for most, representing combined increases between 17%-25%.
Effective May 17, 2019 Start Lighting will implement an overall price increase of 21%. All products will be included in this increase; however, the following exceptions will apply:
• Projects released with product in our warehouses and/or in production prior to the tariff implementation date
• Product in our warehouses that is not committed by Purchase Order
• All backorders will be filled at the price on the original Purchase Order
• Jobs quoted prior to the tariff increase will be evaluated individually
We continue to work with our component suppliers to identify ways in which we can lower costing, change components, or source from other countries.
We will continue to monitor the trade negotiations from both the United States and China. If the trade negotiations continue, and an agreement is reached removing or lowering the tariffs, we will adjust our prices accordingly.
We appreciate your business and implementing this increase is solely based on the tariffs imposed. If you have any questions regarding this increase or the imposition of the tariffs, please contact us!