I recently spoke with Don Akery, President of TTI America’s about the Section 301 tariffs and how they will affect the supply chain. It’s still early, and there is no ‘magic bullet’ answer as to exactly how this will work (i.e. how efficiently the costs will be passed on) but I’ve made an attempt to give you the information we have thus far.
//www.ttiinc.com/content/ttiinc/en/resources/section-301-tariff-faq.html">this link to TTI’s FAQ section on tariffs. Its been updated 3 times since original post so keep checking. They have been admonished, even by their competitors, for having provided such a comprehensive list of answers. Don had some interesting points from the conversation:
#000000;">There is a bunch of “noise” going on around this subject. We are not seeing any consistency on how it’s being handled. One distributor is going to wait until the end of the year to pass anything along. Others are still working on how to handle it (line item charge is the most common input we receive). Whatever charge that is passed along must have enough definition so we can properly assign the extra cost to the appropriate assembly.
Check back here often as we will be following and posting developments.
//www.rsjtechnical.com">RSJ Technical Consulting, a supply chain regulatory advisor. He did not have the ‘magic bullet’ answer either. But he did emphasize the importance of ‘country of origin’ detail through the supply chain as geopolitical issues increasingly affect the products our industry sells.