KCMA Reports Tariffs on Vietnam/Malaysia
The Kitchen Cabinet Manufacturers Association (KCMA) has continued its efforts to ensure a level playing field for cabinet manufacturers stateside and abroad. The latest issue that has had their attention is the usage of Chinese parts being used in Vietnamese and Malaysian manufacturing plants to avoid U.S. tariffs on Chinese imports. This loophole has now received the attention of the U.S. Department of Commerce and legislation is soon to follow.
4 situations frame the inclusion of tariffs on cabinetry out of Vietnam and Malaysia. Falling into any of the 4 buckets will result in attention from the Department of Commerce; however, not all companies will receive the same severity of tariff. We have heard the first round has been implemented at 200% and it will range from that extreme to 20% tariffs for lesser offenders.
The DoC has set clear standards for companies to avoid these tariffs by including extensive proof that none of the parts used are manufactured in China. Keep an eye out for price increases coming to the lines out of Vietnam and Malaysia.
More updates to come, check the below sources for updates to this point.
