New Tariff Having Immediate Effect

“Bolt Talk”

May 15th, 2019

Dear Bo,

Last Friday’s 301 tariff increases, raising existing tariffs from 10% to 25%, is having an immediate impact upon our company’s manufacturing and distribution costs. Additional uncertainty was created on Monday when the office of the U.S. Trade Representative published a list of an additional 3,805 items that may be subject to a 25% tariff effective next month.

As a result of this market uncertainty, manufacturers of both raw and finished product have reacted this week, increasing prices to us in the 10 to 15% range – some increases are immediate; some are effective this coming Monday, the 20th.

Pacific Coast Bolt Corp. and you, our customer, have been through this before when the initial 10% tariff was imposed last year. Our company tried very hard to mitigate the effects of the 10% tariff then and we will do our best to mitigate Friday’s 15% increase.

For our customers who have proposals pending, please contact your Pacific Coast salesperson and let’s review together how we can best meet your future bolting needs.

Sincerely,

Bo Skjellerup

Director of Business Development