Easy Signs has hit the big time in the US by featuring in an article on the front page of the New York Times after being impacted by 400 per cent import tariffs.
The New York Times article focused on the challenges American-based businesses have with tariffs being placed on products from China such as aluminium components used in signage that began under President Trump in 2018, and may not be resolved regardless of who wins the American election later this year.
The New York Times article commenced with a direct reference to the growth of the Easy Signs business.
“Were it not for the trade war between the world’s two largest economies, Easy Signs would now be hiring dozens of workers at its factory in Allentown, Pennsylvania. It would be readying plans to build a second plant somewhere out West — Salt Lake City was a contender — that would generate another 100 jobs,” the article stated.
“Its cloth signs are displayed on aluminium stands made in China. Those products are now subject to a series of tariffs reaching as high as 365 percent under a policy set in motion by former President Donald J. Trump and continued by the Biden administration in the name of protecting American industry from Chinese government subsidies.
“The costs of imported components could increase further, should Mr. Trump win November’s presidential election and follow through on his threat to add a tariff of 60 percent or more on all Chinese goods, and 10 percent to all imports. ‘That’s definitely a scary concept,’ said Andy Fryer, co-founder of Easy Signs. ‘The whole feasibility goes out the window.’
In an exclusive interview with Sprinter following the publication of the article, Fryer provided further insights into the tariff difficulties and how the article came about.
“We had been running into huge challenges with tariffs being applied on imported aluminium products such as pull-up banner stands, media wall frames and gazebos adding up to 370 per cent of the value of the aluminium. This forced us to redirect containers that had arrived to the US from China, all the way to Australia,” said Fryer.
“We have been working with a law firm that is experienced with tariff issues trying to work out how to navigate the situation. During this we reconnected with one of our contacts who heads up the economic development team in Pennsylvania who was across this issue and the impact it was having on other businesses.
“He was contacted by the New York Times about a story being put together to discuss the negative impact of tariffs impacting businesses and jobs in the US. He recommended us as a worthwhile business for the reporter to talk to, so he reached out and set up a conversation with Adam and I online.
“After the conversation he asked if he could come to our factory to see first hand the types of jobs we were creating along with a photographer. In the article he references talking to two dozen American manufacturers, so it appears he thought our story was worthwhile as we were the feature throughout including a couple of quotes and lots of photos and detail about our operation.
“We sell the same hardware in Australia, however with our free trade agreement with China we only pay 10 per cent GST when importing. In comparison when the same components are imported to the US, we are hit with the 25 per cent China tariff – which is known as the 25 per cent China Tax that President Trump implemented while in office. He has since stated that he will increase this 25 per cent to 60 per cent if he is re-elected.”
In addition to the China Tax, Easy Signs has also been hit with an additional anti-dumping tariff in place for aluminium imports into the US from 15 countries.
“There are only temporary initial instructions so far while wording around what products are included is being finalised, however during this period we are being told to pay a ridiculous 370 per cent of the imported product value,” Fryer said.
“So if we bring in US$100,000 of goods, we need to pay US$25,000 China tariff + US$370,000 aluminium anti-dumping tariff. We are hoping our products will be excluded from this tariff as it’s being targeted at aluminium extrusion imports more so than finished products that are made using these extrusions.”
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Looks like easysigns strategy of selling low cost signage, much of it manufactured in China, at rock bottom prices to the masses over the Internet has hit a bump in the road in the U.S. I’m thinking Trump WILL get in again. He wants to bring jobs back to America & protect American manufacturing. He plans to lower the corporate tax rate to 15%. He wants to deport millions of illegals. If I lived in America I would be voting for him. The boys at easysigns may have to rethink their expansion strategy in the states. As a guy over there once told me, we’re not all playing in the same sandbox.