That TVs Were Spared Tariffs Was Much to Industry’s ‘Satisfaction,’ Says IHS
That the Office of the U.S. Trade Representative removed finished TVs from China Friday from the final list of products exposed to Trade Act Section 301 tariffs of 25 percent (see 1806150030) came “much to the satisfaction” of manufacturers, suppliers…
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and retailers, said Paul Gagnon, IHS Markit executive director-research and analysis. For the past two months, most Chinese TV brands and panel makers “have been very concerned” about the possible tariffs because “it would have been challenging to quickly change production supply chains without disruption and additional cost,” said Gagnon. “Section 8539" of products remained on the final tariffs list, and that includes some TV components like tuners and printed circuit boards that “may impact assembly plans in the US,” he said: “The impacts of the increased tariffs are still being evaluated on TV components used in the assembly of TVs.” Manufacturers that “maintain US assembly of products will not have to worry about increased panel prices due to tariffs, as LCD panels for use in TV applications were excluded” from the final list as well, said Gagnon. “But the higher cost for some components will edge into profit margins.” IHS is maintaining its North American TV demand forecast at about 42 million units a year, said Gagnon. “The forecast was at significant risk had the tariffs been passed.”