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

Author: 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

* ******** ****: ** ****, **** *** **** ****** ****** round ******** *********, *** ******* **** **** ********* *** **%. *******, ***, the** ********** *** ********* **** *****, ********** ****“******** ******* *, ****, *** ***** ** *** ********** ******* will ******** ** ** *******.”

***** **% **** ***** ******, ********* **, ****, ** **** over * ******, ** **** **** ** **%.

** **** ****, ** *******:

  • ***** **** ********* ************ ******** ********
  • ********* ** ******** **************
  • ****** ********* *******, ********* ***
  • *** ********* ******** ******* ** ******** ****
  • ********* ************* ** *** *********
  • ******* ******** ** '*******' *****
  • ****** ** ******** ****** ****** ******* ** *****
  • ******* ********** ********

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

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

******** **** ** *************** ***** ********** ***** ***** * *********** ***** ** ***** surveillance *********:

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

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

***** ***** ***** ***** ***** ************ ********, ** ** ******* exactly ***** ****. ***** ***** **** **** ***** ************ *********, like ****.**.** ** “******* ***** ***** ***** *******,” *** **** out ** **** ****** ****. * **************** ************ *** ******* ***** “****** ********* ********” *** ******* ** specific *******.

Failed

************, ******* ***** ************ ******* *** **** ** ** ******** by **** ***** ** *******.

***** ***** ************** ********* ** ****, ******* ************* ****** ***** **** ** **** ******* ** the ** ***** ************** ****** *** ********** ************ ** ******** 8525.80.50 ** “******** *******.”******* *** *** ********* * ******** ********** (*********) ***** ******** ******** ** ***** ****.**.** *****“***** **************** ******** **** ** *** *******, *** *********, *** the *********** *********.”

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

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

** ****** ***** ****** ********* ** ** ********* ** **** ordered ***** ********* ** ******* ** **** ******** **** * move. ******* *** **** ******* ** *** ******** ******** *** US, *** ******* **** ***** ******* ******* ** **********. ******, depending ** *** **** ***** ***** ************* *******, ** ***** eventually ****** ** ********* ** **** ****** *********.

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

** * **** **** ********'* ****, ********* ********* *** *********** ** ************* ** *** ** if ******* **** ** **%. ***, **** *** *** ****** and ********* *********, ** ** *** ***** ** **** ***** still ******** **** *** **% ** * *********** ****** ***** to ******* *************

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

******* ******** ****** (**** ********* *** *************) **** ********* **** IPVM ******** ***** ****** ****** / ************* *** ** ***** due ** *** ******** ***** ******* *** ********* ***** / US ********. ******, **** **** ** * ****** ***** **** ******** ********:**-***** ***** *** ******* ******* ** ****** ******.

**** ******* ****** *** ******** ******** ******* ********* $*** ******* ** * ******* *******, ***** ** ****** ** **** **** ** * ********** trade ***.

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

**** ***** *********, ********* ***** ** *****, *** ************ ****** the ** ******* ** * **** ** '*******' ***** ** a ***** ******* *** **, ** ******** ******* ******:

*** ***** ******** ** **** * ***** *** *** ****** battle *** ********* ******* *** *** ******. **** *** ***** pointing ** * ******* ********** ********** ** ***** ****, ***** that *** **** ** ******** ************ ** ** *****, ***** is ******** ** **** ** ** ** ********

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

***** *** *** ********* * ******** ******** ** *** *** but *********** ** *********.

*******, ** ***** **** *********, ********* ******** ********** ** ** “***** *****” ** *** ***** *** *** which ***** ****** ******* ** ******* $*** ******* ***** ** Chinese *****.

**** ***** ****** ** ******* ** $*** ******* ** ******* imports, ** ****** *** ******** ** ******* ******* ** *** US ** **** (************ ***** $*** *******.)

**** ***** ********* ********* **** ****** ** *** ** ***** Chinese-made ******** ***** ********** *******, ********** ** ******** ********. *********** and ************ ****** **** ****.

Comments (36)

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

*'* ********* **** ****** ****** ****** *** ** ***** ** the ***** **** *** ******** *** ***** ************ *************. *******, cybersecurity, ***** ******, ******* **** *** ************* *** **********, ******* branding, ***. *** ******* ** **** ** ******* ** ************ elsewhere.

** ** *********** ** **** **** ****** ***** ****** ** occurring *** *** **** * ***** ********** ** *******, **** within ***** ** *** **** ************* ****** *** ** ******** (where ***** ****** ****) **** *** ****** **** ******. ******* and ********* **** ******* * ***, ******* **** ******** *** go ***** *** ** ********* ********.

* **** **** ** ** ***** * ***** ************* ******* assembly ***** ** ***** (*** ***** ****** ******, *** ***** be **** *** ******* ** ******).

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

*** **, * ********* ****** *** ** ****** ****** ** about **% *** * ****** ** *.*%.

****** * ****** ** ********* **** ******** **** **** *** can **** ******** ** *** *******, *** ***** ** ** a ***** **** **** *****'* **** ******.

** ******** *** ** ***** ** ***** ******** *** ****** wouldn't **** ** ******, ** **'* ***** ** **** ********'* wallet ****** *** *** ******* **** *** **** *** **** enough ** *******, *** *** **.

** ******** *** ** ***** ** ***** ******** *** ****** wouldn't **** ** ******

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

** ***** *** *** ** ******* ********* ***** ********** *** block *** ******* *********

****** *** ****** ** *** * ******* *****, *** ****** forced ***** ****** ** **** ********** ** ****** ** *******.

** **** ***** **'* **** ** ********** *** ***** **** times. * ****** ***** **** *** ** ***** **** ********* :)

*** ** *** ** ******* ** **** *** **********. *** work ** ** ******** *******. ***'* *** ** ******** ******* opens **** **** ** *** ** *** ***********. *** *** Security ******* **** ********* **** ***** ********** *** *** **** for **** **** *****. ** ******** ******* ***** **** *** I *** "****** *** ****** ** *** **** ** ******** Systems" ** **** ***********.

*** **** ********** ** **** *** *** *** *** ********* from ** ******* ** *** ******* ***** *** *** ********* from **. ******* *** **** *** ** ********** **** *** WTO.

* *** **** ******* ****, *** * ***'* *****.

* ***'* *** *** ******** *********, *** * *** **** a ******* **** * * **** ***** *** ***** *******. They ******* **** *** *******, *** ******** *** ***** *** prices *** ****.

** ***** * ******* ******? ***
** ***** * **** ********* ******? ***

* ****** ** *** ***** ** ******* *** *******.

*** ** **** ***. *** ** *** ********? **** **** for *** ****** ** ** *** *% *****, ** ** we **** ***** ** **** ** *** ** *** *** cheapest.
*** ** *** **** *********? **. *** ** *** ****? I ******* **.
***** ** ******* *** ***** ***** (**** ********* ****** *****) we **** *** **********. ******** * ****** ********* ** ******* or * ********* ***** ** **** ***** *** ********** ** send ** *********** *********.
******* *** ********* ***** ******* ** ******** **** **** **** to *** ******.

****'* **** ***** * **********, *** ****'* **** * *** of *** ******* ********* **** *****.

** ** *** ******* ***** ********* *****, *** "****" ******** makes ** **** **** ******* ******.

*** * ****** ******* *** ***** *** ***** * **** more ********* ******** ********* ** ******* ******** *** ******* ************* are ****** ********* ** **. *** *** **** *** **** a ******* ******* *** *** ***** ************ ***** *** ********.

* ******* ******* **** ** *** *** ** **** **** states *** **** ********* ** *** ** ***** ** **** others. **** ****** *** ****** **** **** *** ********* ** companies ** **** **** **. *** **** * *** *** abatement? * **** ** ********, ******* * **** **** ** pay ***** ****** ***, **** **** *****. ******* ***** *** fair ***** ** **. ********* ******** ****** ******* ***** ** level *** ******* *****??

**** **** **** *** ******* ** ***** ** ****** *********.

***** *** ***** * **** **** ********* ******** ********* ** compete ******** *** ******* ************* *** ****** ********* ** **.

**** **** '*****' ********* *** *** **** *** **** *****.

**'* **** *** *** * ****** ** *** *** ** stronger, ***** *** ** **** ********, *** * **** ** anyway *** **** ****** ************ ** *** '********' * ****** structure **** ***.

*** ******** ** * *** *******. ** ** *** ******* about ********* *****, ** *** ******* ** ** ****** **. Rather ** ****** ** **** ********* * ********. ******* *** a ********.

**** ** * ****** *******. *** ***** ****** ********* **** in *** **** ******** ****** ** *** ******** *******. *******, the ******** ****** **** ******* ***** ******* ***** ***** ****** facilities, ****** **** *******, ***** ********** ***** ****** ********, ***** means **** ****. ***** **** ***** ** **** ** *********** complete ****** **** ****** ** ****** * ****** ****** ** receive **** ***** ***** *** ************ ***** **** ***** ** their ******** *******.
******* ** ****, ****** ** ***** *** **** **** ** points ** ** *** ***** ** *** ***** ****** ********* before * **** ** **** ****?

** ** *** ******* ***** ********* *****, ** *** ******* if ** ****** **.

***, ***'** **** **** ****** *** **** ** ** ***** them. ********* ****** ********* ************ ******* ** ***** ***** **** money :)

******* ****** *** ********* / **********. *** ** ***** *********** here? *** *** **** ******* *******...

* **** ** ** ** ********** ** ** **** ** encouraged ** ************ ** *** *** **** ***** **. ******** do *** *********, *** **** ** ** ********.

*********** * ****** **** ***** ***** ******* ****** *** *** more ********** **** * ****** ******. *** ******** *** ******** player ** ***** *** ******* ***** ** ****** *** ****** player * **** ***** ** **** ****** ** ******** ****** you **** ***** *******. ** *** ************* **** ** *** the ****** ****** ** ************ *****.

********* ***********, ****** ** ******** ********* **** ****** **** ***** dropping ********:

******** ********* *** * **** ** **.*% *** *.*% (***** 8521900020)
******* *** * **** ** *.*% *** *.*% (***** **********)

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

** *** ***** ** *** * *** *** **** ******** whatever ******** **** ***** ******* ***** *** *** ******? ***'* hope *** ****** ** ***** *********** ** ** *** *** going **** ** **********.

** *** ***********, ** ******* *** **** *** *** ******* of **** ***** ***. **** *** ** *********** *** **** their ****** ********** ** *-**, ** *** *********** ***** ****, to *** **** ******* ******* *** *** ****** **** ****** to ***** ****, * **** *** **** ***. * ****** of * *** ******* * *** ** ****** ** **** world.

****** ** ******* ** ****** **** **** *** ********** *** not **** *****, ** *'* *** ******* ***** *-** ***********.

*** *.*. ** * *** ******, *** ***** *** ****** of ***** ****** *** ***** *** ******* ********. *** *** is ~**-**% ** *** ****** ************ ******, ***** ** ~**%, few ** ************* **** ****** ** *** *** ** ** export ******, *** **** ** **** ***** ******* **** ** a ***** *** **** ** *** ****.

** **** **** ***** **** **** ** ******, *** **** will **** **** *********, *** *.*. ***** ******* ******* *** the **** **** **** ****** ****, ***** ******* **** *** harm ***** ** **** ** **** **** **** ******** ************ and ***********.

* ***** **** ****, ****** ** ***** ********* **** ****** tariffs.

#*, ** **** ** **** * '***** *** ****' *** is *********'* ***** ***** **** **% ***** *** ******* *** other ** ****** *** ****** ** *** **** *** ******?

********* ***** *** ******* ***** ****** ***, ********** ** *****. If *** **** ** *** ***** ***** *** **** *** it **** ******* **% ** ****, ****** *****. *** ***** i ** ********* ** ** **** ********* ** *** ******, has ****** ********* *** ***** ****** ******* ** ******** *** US *******. *** **** **** ** ** ***** * ****, but *** **** * ***** ****.

*** **** * ***** ****.

'***** ****' ** **** ****, ***'* ***** **** ** ****. You **** *** *** *** ******* ** *** * '***** pot **** ** *** ****' *** **** *** **** * was ********** **.

** **** *** *** **** ** ****** ** * **** it ** *** ********* ********* *** *** ******** ** * 'small *** **** ** *** ****'.

***, *** **** **** ***** ** **** *********** **** *** paint. ** *** *** **** **** ** *******, ** ** that *** ***** ***** ****** ** ** ***** ****** *** month ******. *'** ******* *** **** **** *****:

*** *** ** *** ****** *********** ** ******* **** ***** ***** ****** *****. *** ** ***** **** ** ** **** ***** ****** then **** ** ***** **** **** **** **** * ***** later, * ** *** ****. ****** **** ********* ** **** period, ****** *****.

*** ***** *****, *** ***** ******-*** **** ***** ** **** is ****** ********* * ****** *****, *** ********** ********** * stock *****, ** **** ****** ** ********* ***** **** ***.

******. ******* **** **** ********** *** *********.

*** * *** ** ********* ******.

***, ** *** **** *** *** ** ********* ***** *******, Avigilon******* ** *********** *** ** *** ****** ******** ** "******* ************ ** the ***". *** **** ** ***-******* ************* ****** ********* ** this *********.

******* ***** *** ** ***** *** **** **** * *** they ***.

******* **** **** ******** ********* **** **** ****.

** ****** ** **** ****** *** **** ** ********* *** cameras **** ****** *** **** *** ***** ** ***** *******. Not ***** **% *** ** **** ** **** **.*% ** recorders ** ** ********.

*** *********** ***** **** *** ******** **** **** ** **** the **** % *** ********* **** ****** *** ******* ************ for ********* *** ******* *** **** ****** *** ******** ** electronics.

* *** ** ********* **** ****** **** *** **** % was **** ** ********* ***** *** *****/********* ** **** **** board *** **** ** ******** ******* ** ** ***** *** 13.9% **** ** *** ******* ****'* ******** **** ***** ******** and **** **** **** *** *% (**** **** ***** ** now **** *%)

** ***** *** ********* *** *** ****** *** **** **** by ******** **-******** ******* *** **** ********** *** ******** ** the ***!

*** **** *** ****** *** ***** ** **** *** *** 3 ** ***** *** ********* ** *** * ***** ******* if *** **** ** **** ** *** **** ** ******** products ** **** ***** ** ** **** **** *** ****. Yes ** ** **** ******* *** **** *** *** ***** increases **** *** ******* ********* ** *** * **** **********!

***** ********* *** ******* ** *********** *** ******* ******, ** they *** *** ****** **** *** ******* *** ** *** local ********.

** * *** ** ** ***** *** **** *** *** and *** *** *** ********* ***** *** *** *******. *** large ******** ***** **** ***'* ** ***** *** ***** ***** imported. ***** *** ** *** **** *** ** ***** ***** have ** ***** *** ****.

****** **** * *** * **** ** ****** * ** hub *** ******* *** ************* *** ********* *** ******** *** repairs, ***** ** *** **** ** ********* **** ** *** 15% ***. * *** ******* ** * ****** **** **** couldn’t ** **** ******* ** *** ** - ****** *** have ******** *** ******* ** **** ********* *******, *** ****** pay *** **** ** ** *** ******** *********.

** ***** ** * **** **** *** ***** ******* ***** on ***** *** ***** *** ***** ***'* ** ******** **** are ** **** **** **** ** ********** **** * ************** prospective. ***'* *** ****** ** *** ****** ******* **** ** importing.

* ******** **** ***** ** ****** *** ** ******* *** can't ******** ******* *** *** **** ** *** **** ** this ** **** ** ****** *** *** ***** **************.

***** ** **** **** ***** ** ********* ******* *** ***'* really ** *** *** **** ********* *** ** *** ***** hand *** *** ********* ***** ********* ** ** *** ******** so ***** ** * ***** ******** *** *** ****** **** to *** ******* ** ****** ***** **********.

* **** *** ** ******** **** *** ******* ****** *** really ***** *** * **** ** *** **** *** **** they **** *** ***** ****** ** *** **% **** **** they ********** *******

**% ****** **** ***** ** ****, **** ** **** ** cameras?

******* *** ***** ** **** *** ********, *** **** *** American *********.

**** **% ****** ***** ********** *** ********* **** ****. **** happened ** ********** *** **** *******.

****** = ***

**** ***** *** ******* ******* ** *******?
** *** *********** ** *** ** *** *** *** **% tax ******, ******* ** ****** *** **% ** *** ***** from ******

********* *** **** *** ** ***** ** ******* **** **** about *** *******, *********** ******, ******* **** **** **** ************* ********* ********* in *** ** ** ***** *** ******* ****** *** *** time *****:

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

  • **** ** *** ***** ***** **** **** ****, ******* **'* replacement
  • ********* *** *** **** *** ******** ***** *** *** ***** the *** *** ******.
  • *** ******* ********* ** **********, ********* ** *******, ** ******** some ************* ******* ** *****, ****** ****, ** ***, ******* they ****** ******* ** ** ****. **** **** ******** ******* manufacturing ** *****, ****** **** **** ****** ******* ** **** for *** ****** ****** *** ***.

****** ******* ******** **** **** **** *** ****** ********** *** will ****** **** ** ****. ******** **** ********* ** * time ***** (**** * ****/*********** **** *** ********** ********) ** data ******* ****** **** *** ****** ***** ** ****** ******* panels *** **** ** ********.

**** ****** **** *** ****?

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports on China

Imperial Capital Security Investor Conference 2018 Review - ADT, Resideo, Alarm.com, Arlo, Eagle Eye, ACRE, More on Dec 14, 2018
Imperial Capital Security Investor Conference is an event matching industry executives with financiers that frequently leads to future funding...
Huawei Hisilicon Quietly Powering Tens of Millions of Western IoT Devices on Dec 12, 2018
Huawei Hisilicon chips are powering, at least, tens of millions of Western IoT devices, such as IP cameras and surveillance recorders, a fact that...
Infinova's Xinjiang Business Examined on Dec 07, 2018
As pressure mounts for companies to stop doing business in China’s Xinjiang region amid a severe human rights crisis, IPVM has found Infinova sold...
Dahua Car Startup Raises $290 Million But Questions Abound on Dec 03, 2018
Dahua’s electronic car startup LeapMotor raised $290 million in funding this year, it said in an announcement. However, this news raises questions...
Evidence of Dahua's Involvement In Xinjiang Surveillance on Nov 28, 2018
IPVM adds new details about Dahua’s activities in Xinjiang, a Chinese region where mass surveillance used to facilitate grave human rights...
Pressure Mounts Against Dahua and Hikvision Xinjiang Business on Nov 19, 2018
Pressure is mounting against Hikvision, Dahua, and other companies operating in Xinjiang as an international outcry brews against the Chinese...
Directory of Video Intercoms on Nov 13, 2018
Video Intercoms, also known as Video Door-Phones or Video Entry Systems, have been growing in the past decade as more and more IP camera...
Chinese Government Increases Hikvision Ownership on Nov 12, 2018
The Chinese government - Hikvision's controlling shareholder - is increasing its ownership of the video surveillance giant amid sharp stock price...
Directory Of Video Doorbells on Nov 06, 2018
Video doorbells are one of the fastest growing categories in video surveillance, especially among residences. The optimal placement of these...
Network Cable Shootout - Belden, Hikvision, Honeywell, NavePoint CCA, Windy City Wire on Nov 05, 2018
Every IP camera install needs UTP cabling. But how much of a difference is there between dirt cheap generic cables found online and the bigger,...

Most Recent Industry Reports

Imperial Capital Security Investor Conference 2018 Review - ADT, Resideo, Alarm.com, Arlo, Eagle Eye, ACRE, More on Dec 14, 2018
Imperial Capital Security Investor Conference is an event matching industry executives with financiers that frequently leads to future funding...
Cisco Meraki New Cameras and AI Analytics on Dec 14, 2018
Meraki has released their second generation of video surveillance with 3 new cameras, AI-based video analytics, and 2 cloud-based storage...
Foolish Strategy: OEMing Facial Recognition on Dec 13, 2018
Almost as 'hot' as face recognition marketing right now is OEMing facial recognition. Last year, they were a who's who of company's with...
DVR Examiner - Video Recovery from Recorder Hard Drives on Dec 13, 2018
Bypassing passwords and long download times on-site, DVR Examiner collects and organizes video evidence directly from a hard drive extracted from...
2019 Access Control Book Released on Dec 12, 2018
This is the best, most comprehensive access control book in the world, based on our unprecedented research and testing has been significantly...
Huawei Hisilicon Quietly Powering Tens of Millions of Western IoT Devices on Dec 12, 2018
Huawei Hisilicon chips are powering, at least, tens of millions of Western IoT devices, such as IP cameras and surveillance recorders, a fact that...
FLIR Launches Body Cameras Unified With VMS (TruWitness) on Dec 11, 2018
While FLIR is best known for their thermal cameras, now they have expanded into body cameras, launching TruWITNESS, a public safety focused body...
Startup Sunflower Labs' Autonomous Drone Security System on Dec 11, 2018
Startup Sunflower Labs is claiming a unique design on a home security system, combining autonomous drones and 'Sunflower' sensors. Imagine an...
The 2019 Video Surveillance Industry Guide on Dec 10, 2018
The 300 page, 2019 Video Surveillance Industry Guide, covers the key events and the future of the video surveillance market, is now available,...
Multi-Factor Access Control Authentication Guide on Dec 10, 2018
Can a stranger use your credentials? One of the oldest problems facing access control is making credentials as easy to use as keys, but restricting...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact