Monday, May 27, 2024

MaxxBuild’s Founder John Altizer on Tariffs on China-made Products: Political Feuds in the Way of Import-Export Dynamics

Last updated Monday, April 29, 2024 10:52 ET

Since 2018, US tariffs on imports coming from China have been increasing. What are the implications of rising tariffs for customers and China-based businesses, such as MaxxBuild?

Macau, China, 04/29/2024 / SubmitMyPR /

Disputes between two countries always affect civilians the most. Sometimes, these feuds are far from full-blown military combat—between the US and China, for instance, there’s an evident conflict of interest. However, that conflict is - for the most part - confined between the lines of bickering and ill-intended jabs, specifically relating to the economy and import-export laws. Seemingly trivial, trade conflicts affect smaller companies, such as MaxxBuild, the most.

Starting in July 2018, under Trump’s administration, the US intensified tariffs applied to Chinese imports. Not much has changed as Biden took office, and most of these regulations were retained. Increased tariffs resulted in an almost immediate reduction in imported goods shipped to the US, plummeting even further as COVID-19 broke out. Subsequently, as of 2022, China made up only 18% of the total US import market.

In 2018, the US imposed multiple tariff rounds that caused an $80 billion tax increase. Currently, US citizens purchasing China import products, ranging from steel and aluminum to solar panels and washing machines, must account for an up to 25% price increase induced by tariffs.

Does anyone authentically benefit from these tariff increases? Since the 301 section of China tariffs amounts to, as of 2018, $71 billion out of $74 billion of total tariff revenue, it seems that the US government and economy are reaping the benefits.

However, these increased tariffs are nothing but a double-edged sword. Though China received the harshest tariffs, the US increased the costs of imports from many other places. In retaliation, tariffs were placed on US exports. As predicted by the TaxFoundation, these tariffs will reduce the US GDP by 0.21%, wages by 0.14%, and employment by 166,000 full-time jobs in the long run.

“Let’s face the truth—many products aren’t manufactured in the US anymore,” stresses John Altizer, Founder and CEO of MaxxBuild, a storage unit manufacturer and metal fabricator based in Macau, China. “Though many claim these raised tariffs are a way to protect American manufacturers and factories, all they’re really doing is increasing average customers’ shopping carts by 20%, 30%, sometimes more.”

For Altizer, reducing tariffs imposed on Chinese manufacturers that ship to the US is an effective way to tackle the ever-growing inflation. “Many producers, due to the lack of other suitable options, move their operations to Vietnam, Laos, Cambodia, and other Southeast Asian countries. Yes, the tariffs there are lower, but production costs are much higher. Ultimately, this solution is not tackling the issue at its root, as customers still pay the same or more,” adds Altizer.

For 20 years, MaxxBuild has been a trusted metal fabricator respected for the team’s craft and attention to detail. Despite its established position, Altizer and his firm face challenges stemming from misperceptions and myths about the quality of Chinese-made goods. “I’ve had the pleasure of working for an American producer, and I would put our products against theirs any day, any time. I can’t speak for every department and industry, but as far as metal goods are concerned, I am convinced the quality at MaxxBuild is unparalleled and unmatched,” he assures.

Crystal-clear guidelines and high standards are, according to Altizer, the most effective way to ensure China imported products meet the client’s expectations. Throughout two decades of operations, MaxxBuild received highly acclaimed certificates that attest to the firm’s commitment to quality and compliance with standards.

Their FM certification, granted by FM Approvals, a third-party global testing laboratory and certification agency, asserted the adequacy of MaxxBuild’s flammable cabinets. BIFMA certificate, on the other hand, guarantees MaxxBuild’s products are crafted in line with the ever-advancing science and focus on safety, ergonomics, and sustainability. Lastly, the FSC certificate bestowed on MaxxBuild’s shelving range is a testament to the firm’s eco-conscious material sourcing and its dedication to maintaining and enhancing forest value.

“I see tremendous value in promoting local manufacturing,” Altizer shares. “However, I believe everyone deserves to make that choice themselves, and that decision shouldn’t be determined by rising tariffs and trade wars. Many producers in China prioritize quality, and these myths, combined with ever-increasing financial challenges, hinder our progress. As long as you set the bar high, most of the time, these standards will be met. I’m extremely proud of my team for steering that ship amidst the storm and maintaining the highest standard despite growing costs. That’s what MaxxBuild is all about.”

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Original Source of the original story >> MaxxBuild’s Founder John Altizer on Tariffs on China-made Products: Political Feuds in the Way of Import-Export Dynamics