Recently, the color TV giant TCL announced that due to the early morning of April 4, 2018, the U.S. Trade Representative’s Office announced a list of additional tariffs on some commodities for China (hereinafter referred to as 'inventory'), covering mainly aerospace. In the information and communications technology, robotics, pharmaceutical, and machinery industries, the proposed list will be finalized in late May after public consultation and related hearings are held.
The Customs Tariff Commission of the State Council issued an announcement in the afternoon on April 4 to impose tariffs on certain imported products originating in the United States. The Chinese side decided to impose a 25% increase on imports of soybeans, automobiles, aircrafts and other products originating in the United States. Customs duties will be announced separately.
In response to the China-US proposal on tariff adjustment, TCL Group Co., Ltd. (hereinafter referred to as the 'Company') makes the following statements in light of the current status of various business segments:
1. The US market is one of the company’s important overseas business markets. According to the US release list, the company’s exports to the United States may be affected by the color TV business. The company’s sales of color TVs in the United States is partly made domestically and exported directly, partly by the company Mexico. Factory production (US color TV products imported from Mexico under the North American Free Trade Agreement are currently tax-exempt); the list may affect the color TV products business directly exported from China to the United States.
This company has already begun planning to increase the production capacity of Mexican factories, and took other measures to reduce the impact on the company's US operations. In the first quarter of this year, TCL's overall business in the United States has steadily increased.
2. Other company products including display panels, mobile communication terminals, white goods and smart AV products are not directly affected by the U.S. business. In China, some of the imported goods that are proposed to impose tariffs on the United States have no impact on the company's business.
3. The proposal of the U.S. Trade Representative’s office to impose an additional tariff of 25% on some commodities in China still needs public consultation and relevant hearings. There is considerable uncertainty.