Tariffs Reducing China’s Share of US TV Imports by More Than Half From 2018

January 10, 2020 by Paul Gluckman|Trade Business

Nearly seven in every 10 TV sets imported to the U.S. in November originated in Mexico, according to new Census Bureau import data accessed on Jan. 10 through the International Trade Commission’s DataWeb tool. November was the third full month that 15 percent List 4A Section 301 tariffs were in force on finished TV sets from China, causing profound shifts in TV-sourcing trends. The U.S. imported 3.66 million TVs from all countries in November, a 22.3 percent decline sequentially and down 40.8 percent from November 2018, DataWeb said. Unit imports for 2019's 11 months declined 4.5 percent year on year to 37.43 million sets.

That the total customs value of TVs imported to the U.S., in 2019's 11 months declined only 1.3 percent to $11.48 billion was reflective of the industry’s strong shift toward larger screen sizes commanding higher average value per set. Mexico was 69.5 percent of the TVs imported to the U.S. in November, DataWeb said. Mexico’s November share, up 1.6 points from October, was roughly double its 35.2 percent share in November 2018, when China was still the dominant country of origin for U.S. TV imports.

Tariffs on finished sets from China changed those dynamics in a big way, DataWeb said. China was the source for 27.4 percent of all TV imports to the U.S. in November, roughly flat with October’s 27.6 percent, but less than half of the 60.4 percent share in November 2018. China is increasingly concentrated on the smallest, cheapest TVs commanding less average value per set than the Mexican counterpart, DataWeb said. November Chinese TV imports to the U.S. were worth $162.87 in average customs value, 5.9 percent lower than in October and 10.6 below the November 2018 average.

Commoditization also has struck TV sourcing in Mexico, though the country remains a haven for more premium sets, DataWeb said. Mexico imported 2.54 million TVs to the U.S. in November, worth $402.34 in average customs value. Though that was nearly 2.5 times more costly than the average Chinese product, it was 12.9 percent below the $461.99 value of the average Mexican TV imported to the U.S. in November 2018. November Chinese TV imports to the U.S. were worth $162.97 million in customs value, a 27.6 decline from October and 28.9 percent lower than in September, the first month the tariffs were in effect, DataWeb said.