We at Cardinal value our relationship with our customers and suppliers and consider it more of a partnership. With this being said, we wanted to keep you up to date with the current economic environment our industry is facing. The Chamber of Commerce and the International Trade Commission (ITC) received petitions from U.S. aluminum extruders and the United Steel Workers Union saying that the Chinese extruders have had an unfair advantage over the past few years and sought a countervailing and anti-dumping tax or tariff to be applied to these Chinese imports. As you might know, the majority of shower door manufacturers in this country buy a large percentage, if not all of their aluminum from China. On Aug. 31st, 2010, what was estimated to be an 8 – 10% tariff on the opening findings of the investigation turned into a 138% tariff on these goods coming from China, effective immediately. The anti-dumping case is set to take place this winter where more tariffs could be added.
We want you to know that Cardinal is positioned very well in this situation. We have always dual sourced our aluminum from both domestic and Asian extruders. With this tariff now in place on the Chinese products, we will now be purchasing 100% domestic which is more expensive. We will be contacting our customers with a letter with specifics as to our response to this tariff. We want you to be aware that if the ITC and Chamber of Commerce are successful in their mission, more price increases are sure to happen. Please keep this in mind when bidding out future projects, especially if you are asked to hold a price for an extended length of time. It is literally impossible to say what Commerce and the ITC will impose next.
If you have any questions regarding the tariff and our response, please contact your local Cardinal Shower Enclosures office.