President Trump’s auto glass tariff became effective today. Chinese materials used in auto glass and glazing industries can expect to see a 10 percent increase as a result of the tariff, according to the document.
Last week PGW Auto Glass notified its branch customers about its 10 percent increase to its products as a result of the tariff, the companies increase becomes effective October 1st. “Due to these actions by the United States Trade Representatives (USTR), and like many U.S. industries today, PGW Auto Glass is forced to pass through this additional cost,” an excerpt from the company letter to its branch customers.
This isn’t the only increase in tariffs the industry should be on the lookout for. According to Trump, there will be an additional increase at the start of 2019. The current 10 percent tariff is expected to increase to 25 percent. The expected increase to imported Chinese materials is expected to have a continued effect on the industry. PGW Auto Glass also stated it will increase the cost for its products by another 15 percent following the expected increase in the tariff in January 2019. This planned additional increase will then be in line with the increases made at that time.
“Effective January 1, 2019, PGW Auto Glass intends to increase prices an additional 15 percent on all auto glass products reflecting the 25 percent tariff,” according to the company’s letter.
According to the tariff list made available last week, some of the affected products include laminated safety glass, tempered safety glass, glass frit, and various float glass products.