Mexico’s Share of TV Imports Soared to 66.4% After Sept. 1 Tariffs Took Effect on Chinese Sets
Fewer than one in three of the 3.9 million finished TV sets the U.S. imported from all countries in September originated in China, according to Census Bureau statistics released Nov. 7 through the International Trade Commission’s DataWeb tool. That nearly two-thirds of TV unit shipments in the month were sourced from Mexico showed the unmistakable measures U.S. importers took to eliminate exposure to the 15 percent List 4A Section 301 tariffs that took effect Sept. 1 on finished sets from China.
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Chinese TV unit shipments in September declined 26.6 percent sequentially from August to 1.14 million sets, said DataWeb. Mexican TV unit imports increased 14.5 percent month on month to 2.59 million sets. Sourcing from Thailand and Vietnam also increased in the month, though both countries’ TV volumes paled in comparison with those of China and Mexico. The U.S. imported 35.4 percent more units from Thailand in September than in August. Vietnam sourcing increased 8.7 percent month on month.
Thailand and Vietnam appeared to absorb much of the low-end TV set volume that shifted away from China in September, said DataWeb. The average set from Thailand was worth $200.51 in September customs value, about on par with the $200.67 in value for the average Chinese TV. For sets from Vietnam, the average was $126.73. Mexico continues to be the haven for larger-screen sets commanding the highest average value of any TV country of origin, despite some recent commoditization there. The average Mexican TV shipped to the U,S, in September was worth $398.41 in customs value, a 4 percent increase from August, though a 5 percent decline from September 2018.
Mexican sets were 66.4 percent of all TV unit imports to the U.S. in September, an 8.8-point share increase from August, said DataWeb. Only 29.3 percent of TV units imported into the U.S. in September came from China, a 10.4-point share decline from August, when the List 4A tariffs had not yet taken effect. China had 52.2 percent share to Mexico’s 44.6 percent of the 5 million TVs the U.S. imported from all countries in September 2018.
The List 4A tariffs added about $30 to the cost of the average TV sourced from China in September, in addition to the 3.9 percent duty that importers normally pay on Chinese TV imports. Sets sourced from Mexico are duty-free under the North American Free Trade Agreement. The 1.14 million Chinese TVs shipped to the U.S. in September were worth $229.29 million in total customs value, meaning the treasury would have billed U.S. importers about $34.4 million for the List 4A tariffs in the TV category.