Chinese Tariffs and Other Industry Developments: What You Need to Know

G4 Kegs | May 15, 2019

To Our Valued Customers,

As you all know, this year has been an eventful one across the entire keg industry. As always, G4 Kegs is committed to keeping you informed of all progress – especially where it could impact your bottom line.

We have been closely monitoring the ongoing trade talks with China. Back in September, a 10% tariff on Chinese goods (including our kegs) went into effect. At that time, we held our prices in the best interest of our customers. On May 10th, however, the trade dispute escalated and tariffs increased from 10% to 25%.

Unfortunately, we cannot continue to absorb additional increases in Chinese tariffs and duties. On June 1st, we will be raising our prices beyond the increase we announced earlier this month. While we know a further increase will be necessary, we are holding on doing so until we have more information in the coming weeks.

Background

Unrelated to tariffs on Chinese goods, an American keg manufacturer filed a petition with the Department of Commerce claiming that Chinese, German, and Mexican kegs are restricting their business. One component of this claim, Antidumping Duties, will be announced later this month – so we do not yet know the impacts to our business or our customers’ businesses.

Effective June 1st, our prices will increase further. However, we are awaiting the Department of Commerce’s determination on the antidumping investigation before finalizing pricing.

What You Should Do Now

In our last outreach to you, we indicated that we would hold our current pricing until May 31st – to allow our customers to take advantage of current rates before the necessary increase. Despite the new tariff, we remain committed to this promise. We strongly recommend placing your keg order today to lock in current pricing before June 1st.

Maintaining competitive keg pricing is paramount across the industry – which is why we have been working to grow a more diverse product selection and partnerships that mitigate the risks associated with doing business globally. We recently announced the introduction of European kegs to the G4 lineup – be on the lookout for more information on European kegs coming mid-June.

If you have any questions about these developments, feel free to contact your keg consultant. As always, thank you for your continued partnership with G4 Kegs.

Cheers,

– Brian, Max, Emma, John, Karrie, Jazmyne, Roland, Loren, and Stephen at G4 Kegs