Tariffs impact market player practices
Nov 30, 2018
Anyone in the chemical industry is well aware that the ongoing trade war between the U.S. and China has had a negative impact on manufacturers, distributors and customers. This glooming trade war has become a reality now that three rounds of tariffs have been implemented, and many lubricants companies are starting to feel the adverse effects.
The tariffs are also causing some major changes in the overall market landscape. For example, customers exporting to China have been reluctant to develop new business with U.S. manufacturers. The increased tariffs have led many customers to inquire about alternative supply points since they cannot absorb the increased costs.
Another concern is that suppliers from other regions not subject to the tariffs, like Japan or Europe, may increase their selling prices to match the final prices of tariffed goods, likely with the goal of increasing profits.
Wondering how the tariff war between the U.S. and China is affecting the overall global market landscape so far? Read more here.
Why should you care?
If you’re a U.S.-based lubricant manufacturer, these tariffs could give local producers and imported products from Asia, Europe and other parts of the world an opportunity to take away market share. It will be interesting to see how this trade war unfolds heading into the new year.