25% China Tariffs Finalized For 2019, 10% Start Now, Includes Select Video Surveillance

By: Charles Rollet, Published on Sep 18, 2018

A surprise move: In July, when the most recent tariff round was first announced, the tariffs were only scheduled for 10%. However, now, the US government has finalized this round, announcing that “starting January 1, 2019, the level of the additional tariffs will increase to 25 percent.”

While 10% will start Monday, September 24, 2018, in just over 3 months, it will rise to 25%.

In this note, we examine:

  • Final list including surveillance products impacted
  • Unclarity of specific categorization
  • Failed exemption efforts, including SIA
  • How inventory programs attempt to mitigate this
  • Hikvision manufacturing in USA potential
  • Broader strategy to 'contain' China 
  • Impact on shifting supply chains outside of China
  • Further escalation possible

* ******** ****: ** July, **** *** **** recent ****** ***** ******** *********, *** ******* **** only ********* *** **%. However, ***, ***** ********** *** ********* this *****, ********** **** “******** ******* *, ****, the ***** ** *** additional ******* **** ******** to ** *******.”

***** **% **** ***** Monday, ********* **, ****, ** just **** * ******, it **** **** ** 25%.

** **** ****, ** examine:

  • ***** **** ********* ************ products ********
  • ********* ** ******** **************
  • ****** ********* *******, ********* SIA
  • *** ********* ******** ******* to ******** ****
  • ********* ************* ** *** *********
  • ******* ******** ** '*******' China 
  • ****** ** ******** ****** chains ******* ** *****
  • ******* ********** ********

[***************]

Video ************ ********* ***** ***** ****** ****

******** **** ** ******* [link ** ****** *********]******** ***** ********** ***** cover * *********** ***** of ***** ************ *********:

(“*****” ***** “*** ********* ********* ** Included”).

Exact ******** *******

***** ***** ***** ***** video ************ ********, ** is ******* ******* ***** ones. ***** ***** **** also ***** ************ *********, like ****.**.** ** “******* still ***** ***** *******,” are **** *** ** this ****** ****. * Hikvision******* ************ *** ******* ***** “select ********* ********” *** offered ** ******** *******.

****** 

************, ******* ***** ************ imports *** **** ** be ******** ** **** round ** *******.

***** ***** ************** ********* ** ****, ******* ************* ****** their **** ** **** letters ** *** ** Trade ************** ****** *** exclusions ************ ** ******** 8525.80.50 ** “******** *******.” ******* *** *** ********* * ******** ********** (********* [**** ** ****** available]) ***** ******** ******** to ***** ****.**.** *****“***** **************** ******** **** to *** *******, *** employees, *** *** *********** community.”

************,*** ***** ******** ******** products **** *** ****** list.

Inventory ******** ******

** ****** ***** ****** initially ** ** ********* as **** ******* ***** inventory ** ******* ** they ******** **** * move. ******* *** **** applied ** *** ******** entering *** **, *** Chinese **** ***** ******* sitting ** **********. ******, depending ** *** **** extra ***** ************* *******, it ***** ********** ****** in ********* ** **** excess *********.

Hikvision ************* ** *** *********

** * **** **** investor's ****, ********* ********* *** possibility ** ************* ** the ** ** ******* went ** **%. ***, with *** *** ****** and ********* *********, ** is *** ***** ** they ***** ***** ******** this *** **% ** a *********** ****** ***** to ******* *************

Shifting ****** ****** ******* ** *****

******* ******** ****** (**** customers *** *************) **** discussed **** **** ******** their ****** ****** / manufacturing *** ** ***** due ** *** ******** about ******* *** ********* China / ** ********. Indeed, **** **** ** a ****** ***** **** ******** ********: **-***** ***** *** ******* rethink ** ****** ******.

**** ******* ****** *** industry ******** ******* ********* $*** million ** * ******* factory, ***** ** ****** to **** **** ** a ********** ***** ***.

Broader ******** ** '*******' *****

**** ***** *********, ********* those ** *****, *** increasingly ****** *** ** actions ** * **** to '*******' ***** ** a ***** ******* *** US, ** **** **** ******* ******:

*** ***** ******** ** only * ***** *** the ****** ****** *** dominance ******* *** *** powers. **** *** ***** pointing ** * ******* government ********** ** ***** back, ***** **** *** goal ** ******** ************ is ** *****, ***** is ******** ** **** in ** ** ********

Further ********** *******

***** *** *** ********* a ******** ******** ** its *** *** *********** ** *********.

*******, ** ***** **** retaliate, ********* ******** ********** ** ** “***** three” ** *** ***** war *** ***** ***** impose ******* ** ******* $267 ******* ***** ** Chinese *****.

**** ***** ****** ** tariffs ** $*** ******* of ******* *******, ** almost *** ******** ** Chinese ******* ** *** US ** **** (************ ***** $*** *******.)

**** ***** ********* ********* that ****** ** *** US ***** *******-**** ******** would ********** *******, ********** of ******** ********. *********** and ************ ****** **** note.

Comments (36)

John Honovich

IPVM | 09/18/18 06:16pm

*******, **** *********.

*'* ********* **** ****** supply ****** *** ** China ** *** ***** move *** ******** *** video ************ *************. *******, cybersecurity, ***** ******, ******* with *** ************* *** government, ******* ********, ***. all ******* ** **** it ******* ** ************ elsewhere.

Undisclosed #3

In reply to John Honovich | 09/19/18 12:22am

** ** *********** ** note **** ****** ***** moving ** ********* *** the **** * ***** regardless ** *******, **** within ***** ** *** many ************* ****** *** of ******** (***** ***** became ****) **** *** second **** ******. ******* and ********* **** ******* a ***, ******* **** probably *** ** ***** due ** ********* ********.

* **** **** ** at ***** * ***** manufacturers ******* ******** ***** in ***** (*** ***** market ******, *** ***** be **** *** ******* if ******).

Avatar

Sean Nelson

Nelly's Security | 09/18/18 07:18pm

****** *** *********!

Avatar

Jonathan de Chateau

09/18/18 07:24pm

*** **, * ********* device *** ** ****** charge ** ***** **% and * ****** ** 4.9%.

****** * ****** ** something **** ******** **** what *** *** **** yourself ** *** *******, but ***** ** ** a ***** **** **** doesn't **** ******.

** ******** *** ** loyal ** ***** ******** the ****** ******'* **** be ******, ** **'* going ** **** ********'* wallet ****** *** *** company **** *** **** not **** ****** ** compete, *** *** **.

John Honovich

IPVM | In reply to Jonathan de Chateau | 09/18/18 07:58pm

** ******** *** ** loyal ** ***** ******** the ****** ******'* **** be ******

**'* **** ****:

** ***** *** *** so ******* ********* ***** ********** and ***** *** ******* companies

Avatar

Jonathan de Chateau

In reply to John Honovich | 09/18/18 08:29pm

****** *** ****** ** buy * ******* *****, and ****** ****** ***** brands ** **** ********** or ****** ** *******.

** **** ***** **'* back ** ********** *** nokia **** *****. * tariff ***** **** *** at ***** **** ********* :)

John Honovich

IPVM | In reply to Jonathan de Chateau | 09/18/18 08:37pm

*** ** *** ** analogy ** **** *** understand. *** **** ** PG ******** *******. ***'* say ** ******** ******* opens **** **** ** you ** *** ***********. But *** ******** ******* gets ********* **** ***** government *** *** **** for **** **** *****. PG ******** ******* ***** foul *** * *** "nobody *** ****** ** buy **** ** ******** Systems" ** **** ***********.

*** **** ********** ** here *** *** *** one ********* **** ** whereas ** *** ******* above *** *** ********* from **. ******* *** fair *** ** ********** with *** ***.

Avatar

Jonathan de Chateau

In reply to John Honovich | 09/18/18 08:45pm

* *** **** ******* John, *** * ***'* agree.

* ***'* *** *** cheapest *********, *** * buy **** * ******* with * * **** price *** ***** *******. They ******* **** *** kitchen, *** ******** *** fresh *** ****** *** good.

** ***** * ******* option? ***
** ***** * **** expensive ******? ***

* ****** ** *** based ** ******* *** quality.

*** ** **** ***. Are ** *** ********? Easy **** *** *** distri ** ** *** 1% *****, ** ** we **** ***** ** able ** *** ** are *** ********.
*** ** *** **** expensive? **. *** ** the ****? * ******* so.
***** ** ******* *** added ***** (**** ********* behind *****) ** **** the **********. ******** * custom ********* ** ******* or * ********* ***** to **** ***** *** installers ** **** ** prospective *********.
******* *** ********* ***** instead ** ******** **** will **** ** *** anyway.

****'* **** ***** * difference, *** ****'* **** a *** ** *** loosing ********* **** *****.

Avatar

Sean Nelson

Nelly's Security | In reply to John Honovich | 09/18/18 08:50pm

** ** *** ******* about ********* *****, *** "fair" ******** ***** ** look **** ******* ******.

*** * ****** ******* and ***** *** ***** a **** **** ********* business ********* ** ******* globally *** ******* ************* are ****** ********* ** it. *** *** **** not **** * ******* program *** *** ***** restrictions ***** *** ********.

* ******* ******* **** in *** *** ** that **** ****** *** more ********* ** *** as ***** ** **** others. **** ****** *** cities **** **** *** abatement ** ********* ** lure **** **. *** cant * *** *** abatement? * **** ** Oklahoma, ******* * **** want ** *** ***** income ***, **** **** texas. ******* ***** *** fair ***** ** **. Therefore ******** ****** ******* Texas ** ***** *** playing *****??

**** **** **** *** neither ** ***** ** global *********.

John Honovich

IPVM | In reply to Sean Nelson | 09/18/18 08:53pm

***** *** ***** * much **** ********* ******** structure ** ******* ******** and ******* ************* *** taking ********* ** **.

**** **** '*****' ********* *** *** **** and **** *****.

**'* **** *** *** I ****** ** *** who ** ********, ***** not ** **** ********, yet * **** ** anyway *** **** ****** congratulate ** *** '********' a ****** ********* **** you.

Avatar

Sean Nelson

Nelly's Security | In reply to John Honovich | 09/18/18 09:05pm

*** ******** ** * bad *******. ** ** are ******* ***** ********* alone, ** *** ******* if ** ****** **. Rather ** ****** ** give ********* * ********. Tariffs *** * ********.

**** ** * ****** example. *** ***** ****** Hurricane **** ** *** same ******** ****** ** the ******** *******. *******, the ******** ****** **** massive ***** ******* ***** means ****** **********, ****** paid *******, ***** ********** means ****** ********, ***** means **** ****. ***** will ***** ** **** to *********** ******** ****** they ****** ** ****** a ****** ****** ** receive **** ***** ***** and ************ ***** **** money ** ***** ******** program.    
******* ** ****, ****** we ***** *** **** with ** ****** ** on *** ***** ** the ***** ****** ********* before * **** ** even ****? 

John Honovich

IPVM | In reply to Sean Nelson | 09/18/18 09:07pm

** ** *** ******* about ********* *****, ** can ******* ** ** wanted **.

***, ***'** **** **** before *** **** ** to ***** ****. ********* should ********* ************ ******* so ***** ***** **** money :)

******* ****** *** ********* / **********. *** ** being *********** ****? *** who **** ******* *******...

 

Avatar

Sean Nelson

Nelly's Security | In reply to John Honovich | 09/18/18 09:13pm

* **** ** ** be ********** ** ** will ** ********** ** manufacturer ** *** *** like ***** **. ******** do *** *********, *** they ** ** ********.

*********** * ****** **** which ***** ******* ****** who *** **** ********** than * ****** ******. You ******** *** ******** player ** ***** *** playing ***** ** ****** the ****** ****** * head ***** ** **** points ** ******** ****** you **** ***** *******. We *** ************* **** we *** *** ****** player ** ************ *****.

Undisclosed Manufacturer #4

In reply to Jonathan de Chateau | 09/19/18 06:37am

********* ***********, ****** ** security ********* **** ****** have ***** ******** ********:

******** ********* *** * high ** **.*% *** 8.7% (***** **********)
******* *** * **** of *.*% *** *.*% (taric **********) 

Avatar

Jonathan de Chateau

In reply to Undisclosed Manufacturer #4 | 09/19/18 07:46am

***** *** *** ******** the **** ***!

Undisclosed Integrator #1

09/18/18 07:55pm

** *** ***** ** was * *** *** that ******** ******** ******** with ***** ******* ***** and *** ******?  ***'* hope *** ****** ** never *********** ** ** are *** ***** **** to **********.

 

** *** ***********, ** prayers *** **** *** the ******* ** **** trade ***.  **** *** US *********** *** **** their ****** ********** ** K-12, ** *** *********** sales ****, ** *** poor ******* ******* *** are ****** **** ****** to ***** ****, * pray *** **** ***.  A ****** ** * pen ******* * *** of ****** ** **** world.

Undisclosed Manufacturer #2

In reply to Undisclosed Integrator #1 | 09/18/18 09:21pm

****** ** ******* ** choose **** **** *** affordable *** *** **** China, ** *'* *** worried ***** *-** ***********. 

Undisclosed #3

09/19/18 12:39am

*** *.*. ** * big ******, *** ***** are ****** ** ***** fields *** ***** *** Chinese ********. *** *** is ~**-**% ** *** global ************ ******, ***** is ~**%, *** ** manufacturers **** ****** ** the *** ** ** export ******, *** **** of **** ***** ******* will ** * ***** pot **** ** *** road.

** **** **** ***** some **** ** ******, but **** **** **** move *********, *** *.*. Based ******* ******* *** the **** **** **** suffer ****, ***** ******* will *** **** ***** as **** ** **** will **** ******** ************ and ***********.

* ***** **** ****, better ** ***** ********* than ****** *******.

John Honovich

IPVM | In reply to Undisclosed #3 | 09/19/18 12:44am

#*, ** **** ** just * '***** *** hole' *** ** *********'* stock ***** **** **% since *** ******* *** other ** ****** *** raised ** *** **** few ******?

Undisclosed #3

In reply to John Honovich | 09/19/18 06:16am

********* ***** *** ******* times ****** ***, ********** of *****. ** *** look ** *** ***** graph *** **** *** it **** ******* **% in ****, ****** *****. The ***** * ** referring ** ** **** Hikvision ** *** ******, has ****** ********* *** other ****** ******* ** overcome *** ** *******. for **** **** ** no ***** * ****, but *** **** * death ****.

John Honovich

IPVM | In reply to Undisclosed #3 | 09/19/18 08:12am

*** **** * ***** blow.

'***** ****' ** **** term, ***'* ***** **** is ****. *** **** the *** *** ******* it *** * '***** pot **** ** *** road' *** **** *** what * *** ********** to.

** **** *** *** much ** ****** ** a **** ** ** but ********* ********* *** not ******** ** * 'small *** **** ** the ****'.

***, *** **** **** frame ** **** *********** than *** *****. ** was *** **** **** it *******, ** ** that *** ***** ***** soared ** ** ***** amount *** ***** ******. I've ******* *** **** data *****:

*** *** ** *** period *********** ** ******* **** ***** ***** market *****. *** ** ***** went ** ** **** right ****** **** **** to ***** **** **** just **** * ***** later, * ** *** know. ****** **** ********* of **** ******, ****** share.

*** ***** *****, *** sharp ******-*** **** ***** in **** ** ****** certainly * ****** *****, not ********** ********** * stock *****, ** **** anyone ** ********* ***** that ***.

thomas worthington

ESRM Communications, LLC | In reply to Undisclosed #3 | 09/21/18 02:19am

******.  ******* **** **** installers *** *********.

 

*** * *** ** subsidies ******.

Avatar

Charles Rollet

09/19/18 03:15am

***, ** *** **** day *** ** ********* these *******, *************** ** ******* **** *** ** *** latest ******** ** "******* manufactured ** *** ***". One **** ** ***-******* manufacturers ****** ********* ** this *********.

 

Michael Miller

In reply to Charles Rollet | 09/19/18 09:13pm

******* ***** *** ** doing *** **** **** a *** **** ***. 

thomas worthington

ESRM Communications, LLC | In reply to Charles Rollet | 09/21/18 02:17am

******* **** **** ******** companies **** **** ****.

Undisclosed Manufacturer #4

09/19/18 06:46am

** ****** ** **** always *** **** ** recorders *** ******* **** impact *** **** *** price ** ***** *******. Not ***** **% *** we **** ** **** 13.9% ** ********* ** to ********. 

*** *********** ***** **** has ******** **** **** is **** *** **** % *** ********* **** Europe *** ******* ************ for ********* *** ******* and **** ****** *** majority ** ***********.

* *** ** ********* into ****** **** *** duty % *** **** on ********* ***** *** Dahua/Hikvision ** **** **** board *** **** ** separate ******* ** ** avoid *** **.*% **** as *** ******* ****'* complete **** ***** ******** and **** **** **** pay *% (**** **** taric ** *** **** 1%)

** ***** *** ********* can *** ****** *** high **** ** ******** in-complete ******* *** **** assembling *** ******** ** the ***!

*** **** *** ****** the ***** ** **** the *** * ** China *** ********* ** put * ***** ******* if *** **** ** ship ** *** **** as ******** ******** ** they ***** ** ** more **** *** ****. Yes ** ** **** complex ***  **** *** the ***** ********* **** are ******* ********* ** not * **** **********!

Shay Fogel

In reply to Undisclosed Manufacturer #4 | 09/19/18 09:16am

***** ********* *** ******* to *********** *** ******* demand, ** **** *** not ****** **** *** payment *** ** *** local ********.

Undisclosed Manufacturer #4

In reply to Shay Fogel | 09/19/18 09:58am

** * *** ** in ***** *** **** you *** *** *** you *** ********* ***** you *** *******. *** large ******** ***** **** BTI's ** ***** *** goods ***** ********. ***** who ** *** **** BTI ** ***** ***** have ** ***** *** case.

Shay Fogel

In reply to Undisclosed Manufacturer #4 | 09/19/18 10:54am

****** **** * *** a **** ** ****** a ** *** *** serving *** ************* *** importers *** ******** *** repairs, ***** ** *** idea ** ********* **** of *** **% ***. I *** ******* ** a ****** **** **** couldn’t ** **** ******* in *** ** - unless *** **** ******** the ******* ** **** different *******, *** ****** pay *** **** ** it *** ******** *********.

Undisclosed Manufacturer #4

In reply to Shay Fogel | 09/19/18 11:03am

** ***** ** * grey **** *** ***** country ***** ** ***** own ***** *** ***** BTI's ** ******** **** are ** **** **** area ** ********** **** a ************** ***********. ***'* are ****** ** *** actual ******* **** ** importing.

* ******** **** ***** by ****** *** ** nothing *** ***'* ******** without *** *** **** of *** **** ** this ** **** ** enough *** *** ***** classification. 

***** ** **** **** money ** ********* ******* you ***'* ****** ** the *** **** ********* and ** *** ***** hand *** *** ********* local ********* ** ** the ******** ** ***** is * ***** ******** you *** ****** **** to *** ******* ** having ***** **********.

Avatar

Sean Nelson

Nelly's Security | 09/19/18 03:58pm

* **** *** ** thinking **** *** ******* buyers *** ****** ***** get * **** ** the **** *** **** they **** *** ***** camera ** *** **% more **** **** ********** thought

Undisclosed Distributor #6

09/20/18 04:52pm

**% ****** **** ***** to ****, **** ** only ** *******?

thomas worthington

ESRM Communications, LLC | 09/21/18 02:15am

******* *** ***** ** hurt *** ********, *** hurt *** ******** *********.

**** **% ****** ***** installers *** ********* **** mine.  **** ******** ** capitalism *** **** *******.

 

****** =  ***

Undisclosed #3

09/21/18 03:06am

**** ***** *** ******* instead ** *******?
** *** *********** ** the ** *** *** get **% *** ******, instead ** ****** *** 25% ** *** ***** from ******

John Honovich

IPVM | 09/23/18 06:44pm

********* *** **** *** an ***** ** ******* this **** ***** *** tariffs, *********** ******, ******* that **** **** ************* increased ********* ** *** US ** ***** *** tariffs ****** *** *** time *****:

***** ******** ***** ******:

  • **** ** *** ***** email **** **** ****, Jeffrey **'* ***********
  • ********* *** *** **** any ******** ***** *** ban ***** *** *** was ******.
  • *** ******* ********* ** evaluating, ********* ** *******, is ******** **** ************* outside ** *****, ****** what, ** ***, ******* **** choose ******* ** ** seen. **** **** ******** started ************* ** *****, though **** **** ****** reports ** **** *** the ****** ****** *** now.

 

Undisclosed Integrator #7

09/23/18 08:01pm

****** ******* ******** **** fall **** *** ****** categories *** **** ****** them ** ****.  ******** that ********* ** * time ***** (**** * card/fingerprint **** *** ********** terminal) ** **** ******* device **** *** ****** chips ** ****** ******* panels *** **** ** affected.

**** ****** **** *** this?

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