We at Matteo wanted to provide you an update regarding the U.S. government-imposed tariffs that are due to take effect on September 24, 2018, on a wide range of products produced in China, including lighting fixtures.
The U.S. Commerce Department announced on September 17, 2018 at a 10% tariff on $200 Billion in goods that are imported from China will take effect on September 24, 2018 and will increase to a 25% tariff on January 1, 2019.
We consider our partnership with you as essential and therefore have taken extensive time to make sure we have reviewed all the details regarding the pending tariffs to minimize increases wherever possible.
At this time, Matteo Lighting is pleased to announce that there will not implement a price increase through December 31, 2018 on all standard Matteo products. We will continue to evaluate the political situation during this time and will advise on increases for 2019 as early as possible, so you will have ample time to prepare.
As for all NEW job-related quotations, effective immediately, Matteo will begin to quote any job with three separate pricings.
The first price will be at current rates, taking into account no tariff related increase -for stock currently on hand in the US
The second price will include the (10% tariff charge currently in place) – for all stock brought in specifically for job orders and that will arrive prior to December 26, 2018
The third price will include updated pricing based on the 25% proposed tariff increase – for stock that will not arrive until 2019 (if the proposed 25% tariff is imposed)
For all current quotations already in house that have come with purchase orders ALREADY received, Matteo will SPLIT the 10% tariff that has already been applied to new items. Matteo will pay 5% of the tariff pricing upcharge and we will increase the price of the product with the other 5% of the tariff upcharge.
We believe by giving you both prices up front, it will allow our customers enough time to work with their outside sales and specifiers to properly quote and price to their direct customers.
We appreciate your patience during this changing business environment. Everyone in the Matteo family values your continued loyalty and we give you our promise that we will work with you to make sure that you have all information as soon as it becomes available.
If you have any questions or concerns about the tariffs and the decisions by Matteo regarding them, please do not hesitate to reach out to us directly.