Casual furniture manufacturer Castelle announced earlier this week that the 25% tariff placed on furniture products imported from China last week will not impact its products.
The new tariff, which officially went into effect May 10, raised duties from 10% to 25% on $200 billion in Chinese goods, leaving many members of the casual furniture industry scrambling to make up for cost increases.
Castelle, which manufactures its products entirely in Costa Rica, said in a release earlier this week that, as its goods are produced in Central America, tariffs would not impact pricing.
“With all Castelle products made in the Americas, Castelle will not be subject to the 25% tariff that began on May 10th, 2019. As such, retailers will not lose profits or sales that could result from price increases necessary to offset the tariffs,” says Mark Stephens, president of Castelle. “Retailers can continue to offer tremendous quality and comfort with Castelle, and now at even greater value when compared to the product imported from China.”
For those retailers, manufacturers and the like who do purchase from or manufacture in China, though, the concern over tariffs is present and maybe even growing.
Following Chinese retaliatory tariffs on $60 billion American goods, which resulted in the Chinese government raising tariffs from a range of 5% to 10% to as much as 25%, the Trump administration announced that it is preparing a new list of $300 billion in Chinese goods that would be impacted by tariffs of up to 25%. The new list includes a number of duties on everything from paint brushes and paint rollers to clocks and watches, and could put more pressure on parts and materials coming from China.