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 commodity manager


Using Intelligent Technology in Sourcing to Get Ahead of Rising U.S. Tariffs

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Since the first list went into effect on July 6, 2018, tariffs on goods imported to the U.S. from China have been a significant source of pain, particularly for those in the high-tech industry. As reported by SourceToday, the 818 categories of products listed are valued at $34 billion, with electronic components making up 58 of the categories, accounting for 15 percent of the value of targeted goods. A second list may soon be on the way and promises to hit electronic components even harder, with 27 percent of the value of goods, totaling $4.3 billion of the $16 billion, in this second wave of tariffs. Bracing for the impact of existing and future tariffs, some distributors are trying to clear the way by rolling tariffs into their prices, while others are depending on manufacturers to account for the cost after the buy. These policies continue to be in flux as the industry comes to terms with the issue, making it almost impossible to determine total expenditures.