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Problem shotting:How to deal with the US tariffs on Chinese imports?

Time: 2020-03-02

In October 2018, a U.S. client with an annual purchase amount of about US $ 3 million flew over to China specifically to discuss with us the 25% tariff increase imposed on China by the United States.


After discussing with clients, FETON found that the clientr's situation is as follows:


1. Under the current import process, his profits will also be levied tariffs. As long as this problem is solved, the cost can be reduced by 9%.


2.Under the current import process, there will be a higher amount of local expenses. As long as this problem is solved, the cost can be reduced by 6%.


As long as the import process is improved, the client can already save 15% of the cost and left with a satisfactory solution.


That means, if we want to achieve the lowset tatal cost, it is nessary to assess solutions from multiple dimensions, such as purchasing cost, chain cost, transaction cost and so on.


Daniel
CEO at FETON Corporation