Earlier this month, President Donald Trump officially launched a trade war with China, and it looks like vaping technology is on the list of products involved. From ball bearings to X-ray machines, the US is threatening to impose half a trillion dollars in tariffs on Chinese imports, which are expected to be rolled out in two phases.
June 6 is the first deadline for the 25% tariffs on 818 consumer products. The second phase includes 284 more products, but the implementation date has not yet been set. The total of 1,102 imported products will add $50 billion in tariffs, significantly increasing the price of the products to consumers.
According to the latest article of The Reuters (1),
“...Hidden on the tariff list are some surprising products, from Google Nest thermometers to vaping devices and gadgets used by rock stars.”
“The annual fixed price of imported Chinese vape products and rock band guitar transformers will be changed from now on.”
The China trade war began in June 2018, and was officially announced in a press conference (2) held by the White House spokesperson. According to the article, the Office of the United States Trade Representative released a product list (3) focusing on industrial goods under the “Made in China 2025” plan (4) of the United States Chamber of Commerce.
“The Chinese government is actively undermining America’s high-tech industry and other industrial leaders through unfair trade practices and trade policies like Made in China 2025. Technology and innovation are America’s greatest economic assets, and President Trump has rightly recognized that if our country wants to have a prosperous future, we must stand up for fair trade and protect American competitiveness.”
What does this mean for American vapers? The future of vaping remains relatively uncertain, but a large market for American vaping devices and related technologies is manufactured and exported by Chinese companies. Even Wall Street has not been overly concerned about the threat until recently. But as the June 6 deadline approaches, the market is starting to get nervous.
(1) Specific article: https://www.reuters.com/article/us-usa-trade-china-consumer-analysis/surprises-lurk-in-trumps-china-tariff-list-from-thermostats-to-vaping-devices-idUSKBN1JL30W
(2) Full report: https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/june/ustr-issues-tariffs-chinese-products
(3) Specific list: https://ustr.gov/sites/default/files/2018-13248.pdf
(4) Made in China 2025 Policy: https://www.uschamber.com/sites/default/files/final_made_in_china_2025_report_full.pdf
