Wednesday, August 7, 2019
Please, Oh Please, Don’t Tariff Our Teas
After the 2016 US Presidential Election, some were lamenting the philosophical shift. But, I think there were many like me that wondered how this would affect their tea purchases as well. In 2018 I predicted here that if Mr. President gets war-stancey, it would significantly affect the world of puerh. I think this effect manifested in a more indirect way over the last year in the form of currency fluctuations. Last week things got real when a 10% tariff was applied to all goods entering the USA from China. That tariff is applied to all goods (that’s right tea as well) that enter the USA after Sept 1st.
I wonder if there are any of you out there who are stocking up before the 10% increase takes hold?
I wonder why Western puerh vendors aren’t taking advantage of this in their marketing? I also wonder how that is going to affect vendors like white2tea or Bitterleaf Teas who ship from China? Or Vendors who have wearhouses in other countries, will they move their stock out before the tariffs hit? I wonder how it will impact Yunnan Sourcing that ships from China but also has the option of moving its stock to Yunnan Sourcing USA? Or the Essence of Tea that has an option of moving tea to their Malaysian warehouse? I wonder about how it would affect smaller projects like Liquid Proust Teas or Crimson Lotus Tea?
Those comfortably sitting in countries other than the USA might also be effected if a global slowdown is the result of the trade war or if their currency decreases in value as a result. Today there is much talk about currency manipulation and its effect. It’s anyone’s guess as to how this will end but for now, with the Canadian dollar a bit higher, I’m considering a purchase…