24 Sep Honeywell Tariff Surcharge begins October 1, 2018
Below is a notification we received from Honeywell regarding a tariff structure that begins October 1, 2018 on several products imported into the United States from China.
You can read the message below in its entirety.
Dear Valued Partner,
The United States government has recently announced trade actions that will likely impact the tariff structure on several product categories that Honeywell imports into the United States from China.
In compliance with the tariff structure and in conjunction with other pricing actions already in effect, we will be adding a tariff surcharge to all impacted products that we sell and ship from the United States.
The tariff surcharge will go into effect to align with the implementation date that the tariffs will be levied, our best estimate currently being October 1, 2018. The tariff surcharge will be applied to all invoices after this date, including any product under PR/PE’s that are sold and shipped directly from Honeywell.
We will be implementing this tariff surcharge as a percentage of the product’s list price, and at this time anticipate up to a 25% surcharge for impacted products. The exact list of SKUs and final surcharge percentage may vary and we therefore reserve the right to adjust both the SKU list as well as surcharge percentage as the trade actions are formalized.
Honeywell products that we invoice prior to the tariff implementation date will not be subject to any tariff surcharge from Honeywell. Products that are already in stock at our Distribution Partners (BlueStar, ScanSource and IngramMicro) will not be subject to any tariff surcharge from Honeywell, even after the tariff implementation date.
We are working closely with our Distribution Partners (BlueStar, ScanSource and IngramMicro) on our stocking position for the impacted SKU’s in order to minimize price increases to our valued resellers. Please make sure to discuss any forecasted deals for the impacted SKU’s with your Honeywell Channel Business Manager so we can work with distribution on adequate stocking prior to October 1st.
In parallel, Honeywell Productivity Products is working to review our supply chain design and implement mitigating actions as quickly as possible.
If you have any questions about this action, please contact your Honeywell Channel Business Manager.
We appreciate your continued support, and thank you for your business.
VP of Marketing, Productivity Products
Honeywell Safety & Productivity Solutions