– Effective Monday, September 24th, a 10% tariff will be placed on container goods being shipped into the United States from China.
– This additional cost is estimated to be added to Chinese manufactured items across a vast majority of the casual furnishings market.
– Retailers of the Castelle brand will see no increase in the price of its furniture due to the product’s being manufactured completely in Costa Rica.
- The tariff structure is based on a two-phase implementation beginning on September 24that which time customs and border protection will begin to collect 10% additional duties on container shipments from China. Effective January of 2019, this will be increased to 25%.
– The Elements by Castelle brand, which is manufactured in China, will be subject to the tariffs but will not have a cost impact on the brand’s customers due to efforts by the manufacturer.
– The company proactively identified and executed company-wide cost savings that will offset the impact of the 10% tariff. In many cases, Castelle will be able to lower pricing below what was announced during the July Preview Market.
– As Elements by Castelle was established as a brand sensitive to the market place, these cost-efficient efforts are in keeping with this positioning.
– The manufacturer will provide retailers of the Elements brand with price reductions in contrast to cost increases occurring on other Chinese imports due to current and future tariffs.