Suppliers feel pinch of Trump’s China tariffs

Suppliers feel pinch of Trump’s China tariffs

If you’ve noticed recent price increases or supply shortages on some products, blame Donald Trump.

Trump thinks he’s done a marvellous thing for manufacturing and primary industries in the USA by imposing a hefty 25 per cent tariff surcharge on certain Chinese imports.

But the problem is that many of the raw materials used by those same US manufacturers – from vehicle and heavy machinery components to food products – come from China.

In some cases, there are limited supplies of raw product that can be sourced from within the US or from trading allies not subject to such tariffs.

So the result is that some manufacturers have been slapped not just with cost increases, but with rations on raw material supplies too.

Silicone is one such material, with US manufacturers having limited access to domestic supplies and therefore relying on imports from China to manufacture all manner of silicone-based products.

It makes sense that US-based suppliers therefore need to increase pricing to cater for the increased cost of manufacturing.

Naturally, many customers are therefore looking elsewhere for cheaper alternatives and suppliers of those products are experiencing a significant rise in demand.

The unfortunate knock-on effect is that if demand increases, so does price. The result is that in trying to save money by avoiding US products, customers inadvertently drive up prices of products from elsewhere.

Ultimately, while Trump thinks his tariffs may be making America great again, he may not realise he is improving international trade opportunities for his country’s competitors.

But when it comes to engine protection – and let’s face it, that’s what Engine Protection Equipment is all about – there is no place for cheaper options.

Silicone hose is a case in point. Comparing quality US product to generic alternatives, we have seen the better quality product outlast lower-cost items by more than twice.

Apart from the cost of replacing cheap hose and coolant or other fluids more often, hose failure can very quickly lead to major disaster for your engine.

So we are sticking by our quality US-manufactured products and wearing the cost increases as much as possible.

After all, our focus is on helping you make your engines last.

You don’t get that with second-rate product.