President Trump's trade war is heating up. In Trump's crosshairs - China - but consumers are going to obviously feel the effects here at home. When it comes to the construction parts industry, some top aftermarket companies that manufacture and import high quality parts from China will be getting hit with a hefty 25% tariff. This will obviously increase costs of many parts.
“We’re extremely disappointed with the Trump administration’s decision to move forward with these harmful tariffs. This move jeopardizes many of the 1.3 million well-paid manufacturing jobs our industry supports," said Dennis Slater, President of the The American Association of Equipment Manufacturers (AEM)
If you need parts for a machine and haven't done so yet, do it now. As in, right now. Don't even finish reading this blog post. If the parts are made in China, you may still be able to beat the implementation of the tariff. Here at ConEquip we received a notice from one of our top aftermarket undercarriage suppliers that our cost for parts imported from China will be increased on Monday July 16.
Fortunately, many aftermarket parts are manufactured in other countries outside of China including Turkey, Italy, and Indonesia. The alternatives are just as reliable and cost effective as the product ConEquip's suppliers import from China.
Keep this in mind when it comes to the 25% tariff and the cost of aftermarket construction parts - despite the increase, machine owners can still save off the dealer cost for parts. In fact, many dealers manufacture OEM parts in China so they too will have to increase prices to compensate for the tariff charge.
Things could get worse before they get better as China is countering by also raising costs for equipment makers that rely on supply from around the world.
So if you are in need of parts or have questions about how the tariff could affect the cost of your parts, give us a call so we can help you get the parts you need at the best price available. 716-836-5069