i+D - November/December 2018 - 26
Business
of Design
Tariffs
Image: EarnestTse
THE CHINA
SYNDROME
BY BARBARA THAU
The design community is grappling with tariffs on
billions of imports from the trading partner that
has become the world's workshop
TARIFFS ON A HEFTY $200 BILLION WORTH OF CHINESE
IMPORTS, FROM LIGHTING FIXTURES TO THE QUARTZ
IN KITCHEN COUNTERTOPS, HAVE FORCED AN
UNWANTED WHITE HOUSE-IMPOSED RIFT BETWEEN
THE DESIGN COMMUNITY AND THE NATION IT HAS
COME TO VIEW AS NORTH AMERICA'S FACTORY.
The 10 percent tariffs, which kicked in last fall, but are poised
to climb to 25 percent on January 1, 2019, have set off strategic
shuffles throughout the interior design supply chain: As vendors
selling to the design trade either absorb, mull, or impose price
increases, interior design firms grapple with finding domestic and
international sourcing partners to offset the expertise of-
and well-heeled relationships with-their Chinese partners.
The design trade also is navigating the delicate dance of passing
along costs to clients, whose ears are perked for price hikes,
while managing projects to avert those very price increases,
say design professionals.
In addition to shrinking the trade deficit with China, the tariffs
reflect the administration's retaliatory efforts to quell China's
"unfair acquisition of U.S. technology and intellectual property,"
according to a statement from the Office of the United States
Trade Representative.
26
If the tariffs reduce design and product knockoffs, that's a good
thing, sources say.
But, a trade war is not the prudent way to go about it, explains
economist Marci Rossell of Delphin Investments. "IP theft is a
legitimate problem, but the solution should be found through
official channels, like the World Trade Organization [WTO],
rather than a trade war."
"We have received notices from
many of our vendors, both small and
large, that they are increasing prices
or we should expect price increases
in the near future."
-JOHN CIALONE,
TOM STRINGER DESIGN PARTNERS
i+D - November/December 2018
i+D - November/December 2018
Table of Contents for the Digital Edition of i+D - November/December 2018
Contents
i+D - November/December 2018 - Cover1
i+D - November/December 2018 - Cover2
i+D - November/December 2018 - 3
i+D - November/December 2018 - 4
i+D - November/December 2018 - 5
i+D - November/December 2018 - 6
i+D - November/December 2018 - 7
i+D - November/December 2018 - 8
i+D - November/December 2018 - 9
i+D - November/December 2018 - Contents
i+D - November/December 2018 - 11
i+D - November/December 2018 - 12
i+D - November/December 2018 - 13
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i+D - November/December 2018 - 15
i+D - November/December 2018 - 16
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i+D - November/December 2018 - 26
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i+D - November/December 2018 - Cover3
i+D - November/December 2018 - Cover4
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