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Are you hit by the US China tariff?

August 26, 2019

The trade war between US and China has no sign to end. Many believe it will last for years and even decades. It is not only a "trade" war, but more like a strategical conflict between two great powers. Think about the cold war with SU (soviet union), how long did it last?  The new cold war is not in our control. But we have to live with it and our business has to survive and grow. 

 

So, if you are an importer or exporter, being hurt by the tariff, what you can do? Let the presidents worry about the "war". We should find practical solutions.

 

There are several ways to avoid the hit by the tariff.  The main idea is to go around the war zone between US and China. If you are a manufacturer in China, why not move to the third country which is not at war with USA? If you are an imported in USA, needing products in China, why not look for alternatives? 

 

No solution is easy. It is painful. But the crisis is a great opportunity if we look at the issue from a different perspective.  Remember, you have competitors. If your competitors are failing or perishing, isn't that good for you? If you are a manufacturer in China, you can rapidly deploy your new product line in Vietnam or Mexico, which are having no trouble with USA. Yes, it is costly to invest and set up a new factory, but it is worthy in the long run. If you are importer, find alternatives or encourage your supplier to move to Vietnam or Mexico.

 

In modern industry, manufacturing has many steps and essentially it is a process of integration. Building a new product line does not mean you will move everything. You only need to move the final step that integrates all parts to be a final product. Move the final step to a third country.  That is the simple solution. It is definitely costs much less than the painful 15% or 30% tariff.

 

America Ship, located on the border between USA and Mexico,  is helping many manufacturers to survive and prosper in Mexico. Contact us for a complete solution!

 

 

 

 

 

 

 

 

 

 

 

 

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