How Chinese Tariffs Are Affecting the US Auto Glass Industry

As the trade war between the United States of America and China has stretched from late 2018 into 2019 the extent of the tariffs being imposed has gone up and it is having an increasing effect on industries hit by the tariffs. One such industry is auto glass manufacturing.

The Tariffs Explained in Brief

The tariff battle arose out of disagreements between Chinese President Xi Jinping and the administration of President of the United States Donald Trump. When the two nations were unable to come to an agreement over a trade deal, the Trump administration opted to begin imposing a 10 percent tariff on goods imported to the United States from China in certain industries to pressure China into making a deal. As a response to the tariffs, China levied its own tariffs on American exports to China, opting to place particular focus on the goods coming predominantly from states which voted for the President in the 2016 election. When the latest round of talks failed to reach an amicable conclusion, the United States opted to raise the rate of its tariffs from 10 percent to 25 percent.

What It Means for Auto Glass

For industries where tariffs are in effect the end result has been an increase in the cost of business. That means that manufacturers or repair professionals in need of auto glass have seen their costs go up. Accordingly this commonly leads to an increase in the price for consumers of the business as the company must raise their rates in order to still be making a profit on the labor or products they are providing.

What Comes Next

While it is unfortunate that the higher costs are making things harder for those in need of auto glass projects, the good news is that talks are ongoing. In the event that a trade deal is reached and the tariffs are in-turn removed, the lower prices will be felt throughout the entire commerce chain, ultimately meaning better deals for consumers.