President-Elect Trump has proposed an increase on import tariffs ranging from 10% to 60% on goods from China, 25% on goods from Mexico and Canada, and up to 20% on everything else the US imports. This could have a significant impact on the printing industry, as many printers import raw materials and finished products from overseas.
Currently, printed materials imported from China incur a 7.5% tariff. If the proposed China tariff becomes a reality, this means an increase of 10 – 52.5 percentage points or 133 – 700% over the current tariff. For example, a $1.00 book imported from China would currently receive a tariff of $0.075.
Current tariff = $0.075 –> Landed cost = $1.075 + logistics cost
If the proposed tariff increases were to become official, it could significantly increase the overall cost of importing these goods.
Potential future tariff = $0.175 to $0.60 –> Landed cost = ($1.175 to $1.60) + logistics cost
The impact of imports from other countries can be shown similarly using the respective percentages. Core countries of interest that import printed materials into the US include China, Canada, Mexico, the UK and India.
The impact of tariffs on the printing industry will vary depending on the company’s supply chain. Printers that rely heavily on imported raw materials will be more affected than those that source their materials domestically.
Why Walsworth is Well-Positioned Against the Impact of Tariffs
One of the many things that sets Walsworth apart from our competitors is our strategically developed supply chain. We source most of our raw materials from US-based suppliers, which helps to mitigate the impact of potential tariffs.
In addition, Walsworth has a strong track record of managing costs and passing savings on to our customers. We are confident that we can continue to do this even in the face of potential tariffs.
As a result, Walsworth is well-positioned to weather the impact of tariffs and continue thriving as a successful printing company, regardless of economic conditions over the next several years.
Learn More About the Benefits of Choosing Walsworth
The potential impact of tariffs on the printing industry is significant. However, printers that have a strong domestic supply chain, like Walsworth, are well-positioned to weather the impact. If you are a publisher who is concerned about the impact of tariffs, we encourage you to reach out to us to learn more about how we can help you mitigate the risks.
