Permanent Magnet hit by US Tariffs?
Permanent Magnet hit by US Tariffs? Early this month, one of our US customers emailed us that they are worried about the Trade War, as their customs broker had sent them this saying that there would be a 25% tariff increase for permanent magnet. In the meantime, they attached a document named Chinese Goods Hit by US Tariffs and added: The 8505.11.00 was listed in the first round of increases (25% of the value) and again in the more recent third round.
After checked the documents they sent, we start the research to find out the current situation.
First, the document from customer is just a provisional list to request for comments and notice of public hearing, but not the final list of tariffs.
“Since the first announcement on July 10, the USTR heard some 6,000 public comments and 350 witness testimonies. Upon review, the USTR removed 286 product groups and excluded certain items from 11 categories.” Daniel Wolfe said in Quartz.
Second, go to the HTS query page from US Customs, type 850511 in the search box and click the Search button. In the result page, we can check whether there is a remark in general rates of duty. There is no remark for magnet, no extra tariff.
Third, let us to check the news from Reuters: U.S. gives rare earths reprieve in revised $200 billion China tariff list.
Fourth, rare earth is very important for U.S. industry, and so it is rare earth magnets. They have broad applications in industry and daily life, ranging from engines to consumer electronics to radars and lasers.
As everyone knows, China is the world’s primary manufacturer of rare earth magnets and the biggest supplier to the United States.
If the U.S. Trade Representative (USTR) increase the tariff of permanent magnet from China up to 25%, it would have affected quite a lot of U.S. products and hurt industry, consumers finally.
People won’t forget the crisis of rare earth in 2011. The China’s export ban of rare earth has led to a huge increase in the price of neodymium magnet and Samarium Cobalt. We also got a lot of complaints and anxieties from customers at that time.
How does American importers deal with the new tariff increases?
The trade war is just started and it is impossible to end in a short time, and we don’t know when it will end. If the product you purchased from China is listed in the final tariffs list, here are some choices to reduce losses.
- Import in advance
- Change Material
- Transit trade
- Cost passthrough
- Suspend purchase
- Mixing HTS code
- Sourcing from southeast Asia
- Building a factory in China
China Magnets Source Material Limited is a professional supplier of magnets. We will continue to focus on related information and keep you informed of any developments that could affect your magnet supply chain. If you have any questions, please feel free to contact us.