Dear valued customers;
As you all know, President Donald Trump imposed another tariff increase from 10 percent to 25 percent on $200 billion list of Chinese goods on May 10th, which affected the products in our trade.
We thought long and hard if we should follow the trend of increasing all our prices, but doing so will stray us away from our core values – to provide affordable and quality products to our customers. Hence, we’ve decided to just increase the prices of the cabinets that are merely affected by the new tariffs when it comes to production and import costs. Therefore, we are happy to announce that ONLY Antique White and Coffee Glaze will have a 10% price increase starting July 1st, 2019.
The tariff increase is amidst the anti-dumping and countervailing duty petition filed by American Kitchen Cabinet Alliance (AKCA), which puts the RTA cabinet industry at risk. Greencastle Cabinetry has joined the American Coalition of Cabinet Distributors (ACCD) together with other importers, distributors, dealers, contractors, and installers to fight back the trade case filed with the U.S. International Trade Commission (ITC) and U.S. Department of Commerce.
Learn how you can join us in this battle by signing up on the ACCD website. You can also follow @VoiceofACCD on Twitter and share the tweets on your social media until our voices are heard by using the hashtag #KeepCabinetChoices.
Thank you for understanding and continuous support with Greencastle Cabinetry.
WASHINGTON (Reuters) – The U.S. Commerce Department said on Wednesday it had initiated an anti-dumping duty and countervailing duty investigation of wooden cabinets and vanities imported from China to determine whether they are being dumped on the U.S. market.
The action was taken based on petitions filed by the American Kitchen Cabinet Alliance on March 6. The alleged dumping margins range from 177.36 percent to 262.18 percent, the department said.
(Reporting by David Alexander; Editing by Mohammad Zargham)
Makers of kitchen cabinets and other hardwood assembly pieces found in almost every American home filed a lawsuit against their Chinese competitors on Wednesday, asking the International Trade Commission to impose anti-dumping barriers and tariffs on China.
The roughly $10 billion industry says it is slowly being wiped out by China companies like Panda Kitchen and Golden Home, based on a petition filed with the Department of Commerce today by the American Kitchen Cabinet Alliance (AKCA).
The move comes at a time when Washington is busy fighting a trade war with China and issues surrounding fair trade practices threaten to undermine a trade deal.
“The United States has lost much of its furniture and textile industries, and China is now targeting American kitchen cabinets in the same way,” says Mark A. Trexler, president and CEO of Master Woodcraft Cabinetry in Texas. “China’s illegal trade practices like dumping and subsidies are hurting American workers and consumers, and today’s filing is the first step in standing up to China.”
AKCA was created this year, likely for the purpose of going after China. Their China trade case is one of the largest ever filed with the International Trade Commission.
They claim that a careful review of the industry will show the market impact from steadily rising lower-cost imports from China.
One major demand driver for wooden cabinets and vanities is new residential construction, which can be measured using housing starts data from the U.S. Census Bureau. This data shows that the number of housing units completed in the U.S. rose 12.5% from 2016 to 2018. Census also regularly measures monthly sales for retail services, including a category for building materials and supplies dealers, which is understood in the industry to be a measure of demand in the replace and remodel segment of the wooden cabinets and vanities market. By this measure, U.S. manufacturers seek to show how demand for their products has grown while financial performance is declining. They’re blaming China.
Early this year, Missouri company Woodpro Cabinetry announced that it was forced to close a facility after manufacturing wooden cabinets and vanities for more than 40 years. Custom Wood Products, a Roanoke, Virginia-based cabinet manufacturer, declared bankruptcy in January.
One of the largest producers of wooden cabinets and vanities, the publicly traded Masco Corp., recently announced its intention to “explore strategic alternatives” to its $1.1 billion cabinetry business, with some saying they may move some production overseas.
Masco seems to be doing well, regardless.
For 2018, their cabinetry products, windows and specialty products line reported $1.7 billion in net sales, $120 million in operating profit and $161 million in adjusted EBITDA. Their stock is up over 30% this year.
AKCA estimates that their members only lost around $116 million over a two-year period between 2016 and 2018. They say subsidies and lower cost wood from Brazil have helped China. While Chinese companies are also making inroads into the U.S.
Based on the petitioner’s filing with the International Trade Commission today, Chinese producers and exporters sold or offered for sale kitchen cabinet merchandise in the United States at prices below normal value. They calculated dumping margins ranging from 175.5% to 259% with an average margin of 216%.
AKCA wants the U.S. government to initiate an investigation on Made in China wooden cabinetry and vanities, hoping to pressure the Commission to slap anti-dumping charges on them.
The Department of Commerce is required to impose so-called countervailing duties on imported merchandise from a country where producers and exporters of that merchandise benefit from countervailable subsidies. As a nonmarket economy, China has long maintained a complex system of economic programs and policies that have favored certain industries or provided some sort of economic relief to help companies maintain employment and grow market share at home and abroad.
Numerous Chinese companies were mentioned in the filing. It is unclear how those Chinese companies can defend themselves against the dumping allegations at this time.
For media or event bookings related to Brazil, Russia, India or China, contact Forbes directly or find me on Twitter at @BRICBreaker
Originally posted in Forbes.
(Reporting by Kenneth Rapoza)
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