January TV Imports Rose 26.1% From December, but Fell 24% From 2019, DataWeb Statistics Show

March 17, 2020 by Paul Gluckman|Trade Business

The U.S. imported 3.03 million TVs from all countries in January, a 26.1% increase from December, but a 24% decline from January 2019, according to Census Bureau data accessed March 15 through the International Trade Commission’s DataWeb tool. January TV imports were worth $798.23 million in customs value, up 9.8% from December, but down 24.8% from the previous January. The average January TV import was worth $263.20, which was 12.6% cheaper than in December and virtually unchanged from January a year earlier.

Mexico was the source of 60.9% of TV imports to the U.S. in January, the fifth full month that the 15% Section 301 tariffs were in effect on List 4A Chinese goods. The tariffs sent U.S. importers fleeing from China in a big way since Sept. 1 when the duties were activated, and Mexico was the biggest beneficiary of the retreat (see 2001100020). Mexico was only 32.1% of TV imports to the U.S. in January 2019, eight months before tariffs on Chinese TVs entered the picture.

TV imports from China were 782,000 sets in January, about 26% of shipments from all countries, DataWeb showed. Though Chinese volume was up 45.2% from December, it was down a stunning 68% from January 2019 when China was 61.2% of TV imports to the U.S. The 782,000 sets shipped here from China were the fewest for any January from that country since 2017 when 774,000 sets were imported.

Wuhan in China’s Hubei province, the original epicenter of the COVID-19 outbreak, is home to several key links in the TV supply chain that absorbed peak disruptions after the Chinese New Year holiday. Even with China’s diminished stature as a country of origin for U.S. TV imports, the February and March import data will bear watching as a measure of the likely impact on cargo.

Thailand in January 2019 was the source of 6.2% of TV imports to the U.S., making it the world’s largest source of supply outside Mexico and China. That changed significantly this January when Thailand ceded share to Taiwan and especially Vietnam, DataWeb stats show. Thailand shipped 89,000 sets to the U.S. in January, only 2.9% of all TV imports, and 64.4% fewer sets than in the same month a year earlier.

Taiwan and Vietnam combined for 8% of January TV imports to the U.S., compared with virtually zero share in January 2019, DataWeb shows. The U.S. imported nearly 145,000 sets from Vietnam, a 98.6% increase from December. Taiwanese imports were 97,000 sets, 65% more than in December.

Whether Taiwan and Vietnam will sustain those trends remains to be seen, especially if the List 4A tariff rollback to 7.5% forced any shifts in sourcing after the discount took effect Feb. 14. Vietnam shipped only 42,000 TVs to the U.S. in 2019's first eight months, then nearly 260,000 in September through December, plus the 145,000 in January, all when the 15% tariffs were in full effect, DataWeb shows. Taiwan shipped only 63,000 TVs to the U.S. in 2019's first 11 months, then a combined 156,000 in December and January.

Mexico continues to be the haven for sourcing of larger, more premium TVs compared with other countries of origin, DataWeb shows. The average Mexican TV import in January was worth $331.26, though 26% less than in January 2019, suggesting Mexico absorbed much of the commodity TV production that tariffs chased from China. The average Chinese set was worth $163.50, $23 less than a year earlier, and roughly comparable with Taiwan's $178.93 average. Thailand and Vietnam rounded out the low end at $111.73 and $113.71, respectively.