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Tariff Cost

Tariff Cost
Tariff Cost

Tariff Cost

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As you are all likely aware, the US government recently initiated an indefinite 25% tariff on goods imported from China. This is basically an additional 15% tax (on top of the 10% that was imposed earlier) to encourage behavioral change in US companies (build/buy U.S.) and China (bad acting).

We has continued to grow however, having never done a price increase since the beginning of the company in 2002, current market conditions do not allow us to sustain an additional 15% on Cost of Goods Sold (we mostly absorbed the initial 10% tariff imposed earlier). In fact, on several core products, if we did nothing, we may end up in a negative margin position selling into distribution. This newest round of tariffs went into effect at midnight 5-11-19 with 1 day of notice. We have considered multiple options since this announcement including waiting (holding shipments) for something to change. Unfortunately, our latest information leads us to believe this is not going to change anytime soon. Our leaders at CEA are lobbying hard in Washington, but it appears to be of no avail.

Therefore, in order to be proactively responsible, we are going to modify our pricing levels to account for past and current market changes (including the new round of tariffs). So to recap, we are absorbing (and have absorbed in the past) the most significant part of the recent tariffs. We have also been able to reduce costs in China on several of our core products, and will now look to our partners to work through this with us.

Once the tariff is lifted and/or changed, our prices will change accordingly. If you would like to discuss further, please call us at 833-WOLFPACK (833-965-3722).

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