The Dreaded Tariffs
Unfortunately I have no control over what the government is doing as far as Chinese tariffs are concerned. I have been informed by my tea gurus, to expect up to 3% further increase in certain teas and up to 5% on some other goods from China. This will take effect for me on September 2nd. This is on top of tariffs already imposed!
I have kept my pricing at a reasonable and competitive level for some time, and I may be able to absorb the tariff increases for a while, however, there are other reasons you may see tea prices increase, according to the report I got from my tea gurus:
- United States/US Dollar: Tariff dispute with China will impact US imports and monetary exchange rates. Trade relations between the top 2 economic regions remain unsettled.
- UK/Europe: Brexit is on the immediate horizon and the significant resulting confusion can be an economic risk.
- Currencies: Exchange rates have fluctuated much more than previous years, (we buy in 4 currencies and sell in 6).
- Economic Outlook: There is a lot of chatter about recession and economic fragility.
- Source Regions: Growers have experienced deviations from traditional weather patterns which have led to lower yields and less production.
- Other: The outcome of the US presidential election process is not clear and is causing a general sentiment of insecurity.
Despite these challenges, Amitea Organics will never skimp on quality, rest assured.