American First – China and US Trade War

Mar.22th,2018 President Trump signed a presidential memorandum in Washington that would impose massive tariffs on imports from China, based on the results of the“301”investigation.The tax mainly focuses on medical devices, high-speed rail equipment, bio-medicine, new materials, agricultural machinery equipment, industrial robots, information technology, new energy vehicles and aviation equipment.Unfortunately, according to the latest news, China’s stone and wood  plastic products are also on the list of tariffs.

Stone and wood  plastic products from China are affected

Stone plastic and wood plastic products as the popular in recent years Europe and the United States of new home decoration materials, has a decisive role in Europe and the United States floor industry. s a result, the trump administration’s policy has had a huge impact on many businesses that rely on imports of stone and wood plastic flooring from China. Since a huge amount of SPC Flooring importing from China every month, PVC Flooring Production Line Investment will be a better choice for most big companies.
Compared with importing from China, there are many advantages we can have from Made in US:
MADE IN CN MADE IN US

	MADE IN CN	MADE IN US
Delivery Time	20days+30days	Planed+1week
Price	7.5$	6$
Quality	Same	Same
Brands	OEM Production	Own Brand
Importing Tariff	+10%	0%
Profit	Be tough	Better control

What is the most reasonable choice？

This table shows that made in US has many advantages. First,importing stone and wood plastic flooring from China needs at least 50 days, but made in US only needs one week. Second, the price of SPC and WPC flooring is 7.5$/㎡ and producing in the US, it only costs 6$/㎡. What’s more, importing from China should pay 10% tariff.

Commodity	Importing Plan	Tariff Increasing
Final Products	Each Month: $ 1.5M=200,000m2 x 7.5$/m2 Each Year: $ 1.5M x 12 = 18M	+extra 10%, 0.15M/Month 1.8M/Year
Machine	$ 15.5 M (All for )	+extra 25%, 3.8M ( ONE TIME)

Now,the data in the table indicate that It costs about $19.8 million one year to import stone and wood plastic flooring from China.This is about 50FCL one year. However,It only costs $19.3million to buy an entire production line.
So in the long run, made in US is the most reasonable choice during the time of trade friction between China and US.

The video address : https://youtu.be/rDguqvLcBus?t=109