Company Letter:
Tariffs on Chinese Products

USTR Issues Tariffs on Chinese Products in Response to Unfair Trade Practices

The US government has announced a 25% tariff on Chinese import items. The list of items scheduled to be affected is nearly 6,000 product categories, which includes multiple bearing and power transmission products. Some of what we currently supply to you may be impacted by this action.

The first scheduled tariff (Part 1) of 25% on approximately $34 billion worth of Chinese imports (818 tariff lines) went into effect on July 6, 2018. The main AST product groups impacted were ball and roller bearings made of steel and alloy steel.

The second tariff (Part 2) was effective August 23, and resulted in an additional tariff of 25% on approximately $16 billion worth of Chinese imports (279 tariff lines). The main AST product groups affected were plain bearings, which includes spherical plain bearings, rod ends and bushings.

Finally, a third set of products affected (Part 3) was added on September 24, resulting in an additional tariff of 10% on approximately $200 billion worth of Chinese imports (5,745 full or partial tariff lines). Starting January 1, 2019, the level of the additional tariff on these products will increase to 25%. All AST product groups imported from China are impacted following this update, including: ceramic and ceramic hybrid bearings, housed bearings, and bearings with integral shafts.

Due to this government mandate, AST will have no other option but to increase prices on all existing and new purchase orders by up to 25% for affected product under the provision of Force Majeure.

We will do our best to keep you informed and mitigate the effect of the government action.  In the meantime, if you have any additional questions concerning the tariff, please contact your AST salesperson. 



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