Beginning in September this year, export furniture to the United States imposed an import tax of 10% (wooden bedroom furniture has been taxed by anti-dumping more than a decade ago). It will increase to 25% from January 1 next year.

Conversely, China levies 5%-25% on retaliatory taxes on timber imported from the United States, and different tax rates for different species, starting in September.

But in September this year, the US trade deficit with China reached a another record ($34.1 billion), up 13% from September last year.

The United States imposes an import tax of 10% on Chinese furniture. At present, the impact is small. Because of the few months, the exchange rate of the renminbi has fallen by about 8%. In the United States, the tax on wood products, the actual cost of importers is also increased by 1% - 2%.

However, China has a much stricter tax on timber imported from the United States. For example, white oak taxes are 25%, plus the yuan is falling against the dollar, and the calculation of value-added tax is a large number.

However, after January 1 next year, the US import tax will increase to 25%, even if the yuan falls another 2% - 3%, there is still 15% tax. At present, the meager profit of exporting factories cannot be borne, and the importers of the US are also unbearable, so they can only increase their sell prices.

Many people say that Americans can transfer orders, such as Vietnam, but Vietnam is a small country with a population of only 80 million. Now that the salary has reached more than 2,000 yuan, it will soon catch up with China. Despite their hard work, exports have so far only been about 10% of China’s total exports. Where do Americans go to find alternative suppliers? Don't say that in a short period of time, one or two years, ten years and eight years are difficult. Therefore, the price of furniture in the United States can only increase.

For the US buyers in this year's Shanghai International Furniture Expo(Furniture China), 70% growth compared to last year. The only reason is: Importers in the United States cannot operate, and retailers buy them themselves. There is no intermediate link. 

If the import tax increases to 25% from January 1 next year, what if the Americans can't find a substitute country for a while? American retailers have to find their way to continue to do business. The only feasible solution is to get rid of the intermediate links and order (or join together) to order in China.

It is possible for retailers in the United States to continue to maintain prices, business continues to do so, and with the help of the Internet, the communication between retailers and Chinese manufacturers is very convenient, and there is no need for intermediate importers.

In turn, China's export manufacturers should not rely too much on the US market. In terms of wooden furniture, exports in 2017 were 13.729 billion US dollars, which was lower than that of exports in 2016, of which 5.288 billion US dollars were exported to the United States, accounting for 38.52%, but another 1.103 billion US dollars are exported through Hong Kong, China (accounting for 8.04%). It is estimated that most of them are re-exported to the United States, which accounts for about 45% of the single US market.

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