The U.S - China Trade Conflict Timeline
The U.S - China Trade Conflict Timeline
A few months ago, we wrote a piece on what was the escalating trade tensions between China and the United States. The conflict is an ongoing topic of debate so we’ve decided to reformat in order to make sure you have the most up to date information for your business. Because you likely don’t have hours to mull over all of the threats and drama between Xi and Trump, we’ve condensed the timeline into, what we consider to be, the most important developments.
Many import businesses already have teams in place and are optimized for working with China so switching manufacturing to other countries can be a huge headache. While these trade disputes have generated very little good news for importers, fortunately, most of your competitors are experiencing similar issues and the new tariffs likely haven’t given you a competitive disadvantage. We’re optimistic that some face-to-face time at the G20 will help settle some tensions between Trump and Xi but these past few months have served as a great reminder of just how fickle major economic relationships can be. This fragile nature of trade has exposed the dangers of an overly concentrated manufacturing network and has taught us that there is really no such thing as a status quo.
As of this writing, the United States has imposed tariffs on $250 billion worth of Chinese exports. The complete lists of affected goods can be found below:
The Timeline
October 25
Trade talks resumed between the two countries. Trump and Xi are reported to be planning discussions to take place during November’s G20 summit in Argentina.
September 24
The US instated tariffs on List 3, affecting $200b worth of Chinese goods. As of September 24, the total value of goods affected by these new tariffs was $250b.
China responded by instating its proposed tariffs on $60b worth of US goods.
September 17 2018
USTR announced that there would be a 10% tariff on the $200b worth of Chinese exports that will go into effect on from Sept 24- Dec 31. Starting early 2019, the tariff rate on that list was proposed to increase to 25%. Immediately afterwards, China announced that it would impose tariffs on an additional $60b of US goods that would go into effect at the same time.
August 23
The US and China go forward and implement tariffs on $16b worth of goods in List 2.
August 3
In retaliation to the United States’ proposed List 3, China proposed a range of tariffs that would affect $60 billion in US products
August 2
President Trump begins considering a 25 percent tariff on $200 billion worth of goods on List 3 as opposed to the original proposed 10 percent.This list included consumer products, construction materials, tools, agricultural products and commercial electronics equipment.
July 6 2018
As promised, the US and China both move forward with tariffs on the initial $34 billion in imports (List1). During this time, a second round of tariffs to impact $16b in goods on each side is under review (List 2).
June 18 2018
President Trump threatened a 10% tariff on an additional $200 billion in Chinese products. He also stated that another $200 billion would be imposed if China retaliated further. At this stage, the threats pretty much covered all of the United States annual $505.47 billion in Chinese imports.
May 29 2018
The United States announced that it would be moving ahead with its proposed tariffs on $50 billion of imports while also announcing a plan to limit visas for Chinese citizens in an attempt to protect intellectual property.
May 20 2018
The United States and China appear to reach an agreement after China offered to significantly increase purchases goods of U.S origin.
May 3 2018
The United States and China began engaging in trade talks in Beijing. Here, the U.S demanded a trade gap reduction of US$200 billion within the next two years. No agreement was reached.
April 4 2018
In response to the U.S government’s tariff implementation, the Chinese government announced a list of US origin products that will be subject to an addition 25% tariff which would also come into play on July 6 2018. The list covers $34 billion in Chinese imports from the US and can be viewed (in Mandarin) here.
April 3 2018
The U.S Trade Representative (USTR) announced the first list of products that would be impacted. That list contained 818 product lines comprised mostly of non-consumer products and included industries such as aerospace, technology, robotics, industrial machinery, medical equipment, and automobiles. The complete first list represented $34 billion in products and was set to be in effect as of July 6, 2018.
March 22, 2018
President Trump first announced that the United States would be imposing a 25% tariff hike that would impact $50 billion in Chinese goods imported into the U.S annually.
Bringing a Product to Market: Found Method Podcast
Bringing a Product to Market: Found Method Podcast
Shape’s Director of Marketing, Jordon Sansom, recently had the opportunity to sit down with the guys at Found Method to explore what it takes to bring a product to market. Found Method is a partnership between Cohub and Platoon Studio that looks at the decisions and strategy that go into building, running and growing a business.
On the episode, Zach, Elliot, Charles and Jordon cover product design, brand launch and modern retail while going back and forth on finding a balance between the pursuit of perfection and getting ideas out there. To dig further into some of the product launch information discussed on the podcast, check out our guide to evaluating product ideas.
Listen to the episode on Spotify.
The episode is also available on iTunes and Stitcher.
Featured as a top product design agency by DesignRush.
10 Tips for Innovative Packaging Design
10 Key Tips for Innovative Packaging Design
So, you have your game-changing product all dialed-in and ready to sell, now what? Just throw it in a craft box and you’re good to go right? Well, not exactly. Before calling it a day, maybe it’s best to step back and ask yourself a few critical questions first. Let’s take a look at a few key factors that will contribute to the effectiveness of your packaging:
Physical protection
Is your product going to be sold exclusively online? If it is, your packaging may be simpler and cheaper but you will need to protect from abuse during warehousing, shipping & handling. Variables like temperature, time, and other environmental influences like dust, mold, insects, microorganisms, and UV light can damage certain packaging materials. It’s best to make the right decisions on the use of materials from the get-go to avoid any potential issues further down the road. Now that you have a second mortgage on your house to finance your dream product, it’s important to proceed with care and confidence, while so much of your money is invested into your product before you have even sold your first unit. Thinking of your packaging as a protective shell for your product is a good approach and only the first of many factors to consider.
Drop testing
Physically surrounding and protecting your product is only a part of what packaging should do. What about drop testing? This is the packaging design equivalent to an automotive crash test. Your package will need to survive a fall from a predetermined height and your precious product inside will also need to survive without physical damage. If your product is a food item, you should consider the shelf life measured against the estimated time your product will be in transit, and in warehousing/distribution before it gets to your customer. All those environmental factors mentioned earlier like temperature and time duration will surely have a huge impact. Ultimately, your packaging solution needs to act as a protective outer shell from manufacturing, through shipping & transport, and all the way down the line to the retail environment and into the hands of the consumer and that cashier with butterfingers.
Sustainability
Have you thought about the sustainability component of your product? Can you even produce a cost-effective packaging solution while looking out for Mother Earth? In a perfect world, we all want to be better stewards of the earth and do our part to reduce any negative impact, but how? You don’t want to be responsible for creating more waste or be the one responsible for entangling sea turtles in plastic debris. In some instances, you do have options for using recycled packaging materials or at least a percentage of it along with environmentally safe printing dies and materials for any additional product protection while in the box.
The harsh truth is that sometimes, things are not as environmentally friendly as we might think, particularly if a certain production process has a high scrap rate or increased cycle time associated with it. Some of these processing methods could mean using more energy during production. That can’t be good for the earth either, can it? Is your finished packaging solution easy for consumers to break down and recycle? Is every material clearly labeled to help with this process, or will it simply get trashed out of confusion or frustration and end up floating in the pacific ocean? Wow…so much to think about, right?
Tamper & Theft proofing
You will also need to consider how to make your package tamper-resistant to reduce potential theft. Yes, it’s a problem and it’s often ignored by many. Is your packaging solution so small and efficient in the use of materials that it is now also very vulnerable to theft? Perhaps your product requires a visual indicator to show consumers that your product is safe to use/consume and tamper-free. Many food items or medications have safeguards in place to protect products from tampering and to raise consumer confidence & safety.
Not only can some products be removed far too easily from the package itself, but some entire packages can be easily stolen if not carefully designed to safeguard against it. Often a package for a very small item needs more visual presence or bulk intentionally designed into the packaging solution just to reduce or illuminate the possibility of being stolen.
In addition to the exterior packaging, your product might require additional plastic wrapping, a plastic hang tag or a blister pack or a plastic vacuum-formed tray, wire fasteners/tie-downs to help secure your product or protect it.
Accessories
Will your product be all alone in that beautiful package? What about any additional elements that need to be considered? Extra parts, accessories, cables, power adaptors, batteries, mounting hardware/fasteners swag, or anything else that needs to be accommodated alongside your product? Many additional items require additional special tooling or forming that adds additional cost and also has a potential environmental impact. If these items need to be food grade, your options will be limited in terms of material choices and may be regulated depending on what you need to include in the box.
Copy & Translation
Have you considered what kind of written literature needs to be included to help consumers with your product? How about an instruction booklet, warranty card, or additional legal copy? All that copy will need to be written and illustrations & icons created, not to mention any certification labels required and it doesn’t stop there. Just when you thought you had so much packaging real estate to work with, you may need to have all of your copy translated and written in other languages too depending on where you are intending to sell your product. Sure, it’s becoming a global market but there are still many differences within various parts of the world. On top of cultural and language challenges, If you want to maximize your product’s potential, you’d best pay attention to the details affecting all the specific regional nuances.
Retail requirements
Not all bricks and mortar stores are alike and in fact, they all have different practices when it comes to displaying and merchandising your product. Will your package hang on a hook or will it stand on its own on a shelf? Perhaps it will be sold on a pallet in a club store or get stacked? Any concerns with weight? Will it be in a PDQ with its own header card and infographics? Many retailers have specific requirements that need to be followed so it’s best to find out what limitations you may be up against before you get too deep into it. You may only have a limited amount of shelf space to work with so the package size will most certainly be a factor. You’ll want to maximize your shelf presence to make a bigger, bolder impact and connect with your intended consumer.
Cost vs Perceived value
A common objective is often to create the cheapest possible package to help reduce cost but wait, not so fast. Besides theft being a potential issue, think about your product from the eyes of a consumer for a minute. Does your packaging solution accurately match your brand essence and project a high perceived value? Will adding 30 cents to the overall packaging cost help to elevate that perceived value and translate to more sales? If the answer is yes, then it’s a no-brainer. Give your product the best chance to succeed. Conversely, if your product is intended to be a low cost, high volume consumable item, don’t create a package that makes it seem unapproachable or unaffordable. Either way, the packaging should match the brand and clearly communicate your message.
Unboxing experience
Don’t forget about the unboxing experience as a consumer initially opens your package and reveals your product for the first time. Keep in mind that this is the very first chance you have to make a positive impression. If the unboxing experience is not a positive one, your product already has a tarnish on it regardless of how great it might be. Its best to make the experience pleasurable but don’t make it complicated with unnecessary obstacles or barriers. This is not foreplay, let’s get to the good stuff already…your product!
Prototyping
One of the best methods of ensuring that your product experience is a good one is to prototype your complete packaging solution so that you can put it through its paces. You may even need to do more than one round too because there are so many variables and considerations involved. Make sure you have some real-world, hands-on experience with all aspects of your packaging solution before you finalize it and pull the trigger on production. The more time you spend upfront addressing potential issues, the less likely you are to encounter that “oops” moment further down the road when you have retail commitments to adhere to.
We haven’t even touched on the graphics & printing requirements of the package yet…that is an entirely different subject with a new set of considerations. These include your branding, product story, and all the good stuff that helps consumers to make an emotional connection with your product. Be sure to address the top 10 considerations affecting the physical structure of your packaging before you even start with your graphics.
Make sure you have an experienced, competent, and knowledgeable team working for you to help you achieve your goals. That second mortgage and extended line of credit are real. Make sure you give yourself the best chance to succeed and get that great product of yours flying off the shelves!
Have more questions about packaging design? Head over to our Packaging Design page to learn more.
U.S - China Tariffs Explained
Trade Tensions
No matter which outlets you subscribe to, your newsfeed is undoubtedly filled with talk of the increasing economic tensions between the United States and China. Given that this is a resource for entrepreneurs and I’m not here to debate who the long-term economic winners and losers or predict the impact on international trade as a whole. The purpose of the post is simply to review what has been said, what has been put in motion and help you identify if there will be any immediate impacts on your business.
President Trump first announced on March 22, 2018, that the United States would be imposing a 25% tariff hike that would impact $50 billion in Chinese goods imported into the U.S annually. On April 3rd the U.S Trade Representative (USTR) announced the first list of products that would be impacted. That list contains 818 product lines comprised mostly of non-consumer products and includes industries such as aerospace, technology, robotics, industrial machinery, medical equipment, and automobiles. The complete first list represents $34 billion in products and will be effective as of July 6, 2018. You can see the full list of product lines here.
The second list covers 284 lines worth $16Billion in annual imports is currently under further review and does not yet have an effective date. The second list can be found here.
More threats
In response to the U.S government’s tariff implementation, the Chinese government has announced a list of US origin products that will be subject to an addition 25% tariff which will also come into play on July 6 2018. The list covers $34 billion in Chinese imports from the US and can be viewed (in Mandarin) here.
In response (yes, again) to the Chinese government’s tariff implementation, on June 18th President Trump threatened a 10% tariff on an additional $200 billion in Chinese products. He also stated that another $200 billion would be imposed if China retaliates further. These threats pretty much cover all over the United States annual $505.47 billion in Chinese imports. As of this writing, no product lines or official documentation have been released pertaining to these threats.
The trade landscape between China and the United States is changing very quickly so be sure to stay in the loop and monitor how these changes will affect your business.