November 19, 2024
Dear Valued Customer:
We would like to ensure you are aware that there has been a significant indication that new tariffs will be put in place shortly following Inauguration Day in January 2025. As we have always done, we will do our very best to minimize the impact to you.
To be transparent and informative about how these potential tariffs may affect your pricing, we have created the pricing increase schedule below. Effective immediately, all Import orders currently placed and not yet shipped, and all Import orders placed going forward will require signed acknowledgement that prices are subject to change based on the schedule.
If the new tariff is 10% or less, CBI will absorb. If the new tariff is greater than 10%, CBI will increase the NET order price for each item by the percentage below in following the schedule:
New Tariff 15% - Increase by 4%
New Tariff 20% - Increase by 8%
New Tariff 25% - Increase by 12%
New Tariff 30% - Increase by 16%
New Tariff 35% - Increase by 20%
New Tariff 40% - Increase by 24%
New Tariff 45% - Increase by 28%
New Tariff 50% - Increase by 32%
New Tariff 55% - Increase by 36%
New Tariff 60% - Increase by 40%
Any tariff increases between two amounts shown and any increases above 60% will follow the same formula for the % of increase. If a new tariff is announced, the increase will be applied starting the day the increase goes into effect. Tariff increases will be based on Country of origin and may be based on specific groups of items. Goods that have been received before the tariff goes into effect will not have an increase.
We hope that by providing you with this information in advance, you are reassured of our continuing commitment to our partnership with you. There also continues to be uncertainties surrounding the logistics industry. The US East / Gulf port strike may begin as soon as January 15, 2025.
CBI’s shipments continue to be routed through the US West Coast which is currently open and operational.
Compounding this situation are the ongoing port strikes in Canada, which have significantly disrupted logistics and shipping timelines. These strikes have led to increased congestion and delays, as shippers choose to send more goods to the US West Coast. We will continue to be vigilant in monitoring these situations.
Best regards,
Craig Bachman
President
Craig Bachman Imports, Inc.
TARIFF & PRICE INCREASE FACT SHEET
- CBI will absorb any tariff increases up to 10%
- Tariff increases will be based on the country of origin.
- It is expected that any tariff increases on countries other than China will be much lower. It has been indicated that possible tariffs on countries other than China could be under 10% but possible up to 20%
- In total number of SKUs for CBI items, less than half of our items come from China.
- If the China tariffs are substantially increased, it will be at least a year before production could potentially be shifted to other countries. This means that it is likely that all goods purchased from any source will have price increases.
- CBI’s increase schedule will only go into effect if the tariffs go into effect. Goods that have been received before the tariffs go into effect will not have an increase.
- Any increase will be on the NET order price for each item. For example, should your order have items that have varying countries of origin, the pricing will only be adjusted based on each item’s new tariffs.
- Many customer orders already placed with CBI will arrive before any new tariffs go into effect.
- We have substantial inventory of many items. If you order from inventory now, no increase applies.
- Your Sales Representative and Account Representative are always available to assist you with your order. They can provide up to date information on current inventory, as well as help to identify the country of origin for all CBI items you may be considering for an Import order.
- CBI remains committed to keeping you informed and working with you to find the best possible solutions for all your product needs. Our intention in being transparent with possibilities is to assure you of this commitment.
