Trade Complaints Tabled as China Tariffs Take Toll on Ikea’s Imports — Panjiva
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Trade Complaints Tabled as China Tariffs Take Toll on Ikea’s Imports

China 2150 Cons. Discr. - Durables 200 Cons. Discr. - Retailing 220 Tariffs 1483 U.S. 3910

The U.S. International Trade Commission received eight petitions to investigate trade infractions in April, Panjiva analysis of government filings shows. Only one of those related to dumping / subsidy cases, focused on quartz kitchen / bathroom products. The ITC also formally took up an investigation, petitioned at the end of April, into exports of metal filing cabinets from China.

INTELLECTUAL PROPERTY CONCERNS OUTNUMBER DUMPING COMPLAINTS

Chart segments petitions to the International Trade Commission by complaint type. Calculations based on U.S. ITC filings.  Source: Panjiva

While somewhat niche the case follows an investigation of wooden furniture from China and comes on the heels of the decision by the U.S. government, outlined in Panjiva’s research of May 7, to extend tariffs on around $200 billion of Chinese exports to 25% from 10%. The potential extension of tariffs to include all Chinese exports may lead to a pause in new cases being petitioned as U.S. corporations wait to see whether the Trump administration makes good on its threat.

The furniture industry is particularly exposed to tariffs on Chinese exports – Panjiva data shows China, including Hong Kong, accounted for 66.6% of seaborne shipments in the 12 months to Apr. 30. Some signs of realignments in supply chains can already be seen – imports from China including Hong Kong fell 9.8% year over year in the three months to Apr. 30 whereas those from the rest of the world rose 5.2%.

TARIFFS TAKE TOLL ON FURNITURE SHIPMENTS

Chart segments U.S. seaborne imports of furniture by origin on a monthly and three-month average basis.  Source: Panjiva

Among the major importers Ikea has cut its imports the most aggressively with a 34.9% year over year decline. That partly reflects a wider downturn in its operations though with total imports off by 25.7% including a 28.6% decline in shipments from Europe. It has, however, modestly increased shipments from other markets including Brazil and Vietnam.

Other major importers have either imports from China more modestly – for example by 17.7% in the case of Target – or actually accelerated them as a hedge against further tariff increases as was the case with Home Depot‘s 16.6% increase.

IKEA CUTTING BACK ACROSS THE BOARD

Chart segments U.S. seaborne imports of furniture by Ikea by origin on a monthly and three-month average basis.  Source: Panjiva

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